UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
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: 05/01/04 - 10/31/04
Item 1 - Report to Stockholders
Semi-Annual Report
[logo] Merrill Lynch Investment Managers
MERRILL LYNCH FUNDS FOR INSTITUTIONS SERIES
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Merrill Lynch Premier Institutional Fund
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Merrill Lynch Institutional Fund
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Merrill Lynch Government Fund
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Merrill Lynch Treasury Fund
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Merrill Lynch Institutional Tax-Exempt Fund
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October 31, 2004
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Dear Shareholder:
We are pleased to provide you with this Semi-Annual Report for the Merrill
Lynch Funds for Institutions Series.
Economic Environment
After a prolonged period of unchanged monetary policy, the Federal Reserve
Board (the Fed) began a tightening cycle with three 0.25% interest rate hikes
at the June, August and September Federal Open Market Committee (FOMC)
meetings. The Federal Funds target rate stood at 1.75% at October 31, after
holding at 1.00% for slightly over a year. The Fed policy change was primarily
prompted by three consecutive months of robust payroll data for March, April
and May. This sector of the economy had lagged considerably in the recovery,
until the positive payroll reports showed clear signs that adequate job
creation was underway.
Although short-term rates generally rose throughout the past six months,
the two-year sector of the yield curve remained in a range between 2.40% and
2.60% for the bulk of the period given economic uncertainty surrounding the
presidential election and the dramatic rise in energy prices. At this writing,
two-year yields were higher than at the beginning of the period as the market
responded to the uncontested reelection of President Bush and extremely strong
employment data for October, and the fed fund rate has been increased to 2.25%.
Portfolio Matters
Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
For the six-month period ended October 31, 2004, Merrill Lynch Premier
Institutional Fund's net annualized yield was 1.31%. The Fund's seven-day net
annualized yield as of October 31, 2004, was 1.71%. The Fund's average
portfolio maturity at October 31, 2004, was 60 days, compared to 67 days at
April 30, 2004. During the period, the Fund's average portfolio maturity ranged
from a low of 49 days to a high of 71 days.
For the six-month period ended October 31, 2004, Merrill Lynch
Institutional Fund's net annualized yield was 1.24%. The Fund's seven-day net
annualized yield as of October 31, 2004, was 1.66%. The Fund's average
portfolio maturity at October 31, 2004, was 54 days, compared to 57 days at
April 30, 2004. During the period, the Fund's average portfolio maturity ranged
from a low of 39 days to a high of 61 days.
The market was given ample warning for first Federal Funds rate hike in
late June, as the series of strong employment reports began in early April. In
our view, the need to provide maximum shareholder liquidity was paramount
during a period of rising interest rates. However, we also believed that the
Fed's "measured" tightening strategy would allow us slightly more flexibility
than we have enjoyed in the past. For that reason, it seemed that the
appropriate strategy was not necessarily to aggressively shorten the Fund's
overall maturity, but rather to target shorter sectors of the yield curve while
still maintaining a slightly shorter but still fairly
1
constructive average life. This was typically 65 to 70 days for Premier
Institutional Fund and 55 to 60 days for Institutional Fund. Our belief in this
strategy also was reflected in our relatively high concentration in variable
rate securities (approximately 50% of each Fund's net assets). Because the
coupons on variable rate securities continually reset, that portion of the
portfolio offers protection against rising rates, enabling us to be slightly
more active with the remainder of our investments.
With the Fed raising rates, the front end of the yield curve was, as
expected, fairly steep. Thus, we found both higher yields and greater value in
securities with maturities as short as six months. In the early stages of a
rising interest rate environment, such as the current cycle, the two-year
sector typically underperforms the rest of the yield curve; hence, we were
extremely wary of any of the longer-term sectors and added no meaningful
exposure.
While the market seems to have digested the reelection of President Bush
as a positive, we believe it could be difficult for the President to implement
any meaningful fiscal stimulus in light of the budget deficit. We continue to
believe that U.S. consumer spending will be slowed by higher energy prices,
especially as we enter the winter heating season. Although we don't see value
in the market at current levels, our skepticism about the future course of the
economy has us ready to invest further out on the yield curve if market prices
are favorable.
Merrill Lynch Government Fund
For the six-month period ended October 31, 2004, Merrill Lynch Government
Fund's net annualized yield was 1.18%. The Fund's seven-day net annualized
yield as of October 31, 2004, was 1.54%. The Fund's average portfolio maturity
at October 31, 2004, was 40 days, compared to 58 days at April 30, 2004. During
the period, the Fund's average maturity ranged from a low of 35 days to a high
of 58 days.
In an environment that saw the Fed shift its emphasis toward higher
interest rates, the Fund's average life, which started the period in the
mid-50-day area, declined by June to the low-40-day area, where it remained for
most of the period. A relatively flat yield curve, as well as volatility in our
cash flows during the period, limited much of our involvement in the longer end
of the curve. As we positioned the Fund for higher interest rates, we
emphasized overweighting the Fund's holdings in floating-rate notes and
repurchase agreements. This enabled the Fund's yield to remain competitive
while the balance of the portfolio was invested above prevailing financing
levels. The fixed-rate portion of the Fund initially targeted the 12- to
15-month sector for additional yield and price appreciation. As the period
progressed, we increased our positions in the six-month sector, which had
become the fulcrum of the yield curve, as the markets priced in a more
aggressive interest rate scenario than we believed was reasonable.
Looking ahead, while the current level of core inflation does little to
support the view for higher interest rates, we remain convinced that the Fed
will continue raising interest rates, albeit at a "measured" pace. The recent
employment statistics have renewed higher expectations for the depth and
breadth of the current recovery. On the agency front, we believe any
legislative outcome that may arise from the government sponsored home financing
enterprises situation will not be enacted until next year and will tend to
tighten quality spreads. As a result, we may find opportunities that will allow
us to invest further out on the yield curve if conditions appear oversold.
2
Merrill Lynch Treasury Fund
For the six-month period ended October 31, 2004, Merrill Lynch Treasury
Fund's net annualized yield was 1.05%. The Fund's seven-day net annualized
yield as of October 31, 2004, was 1.41%. The Fund's average portfolio maturity
at October 31, 2004, was 45 days, compared to 60 days at April 30, 2004. During
the period, the Fund's average maturity ranged from a low of 39 days to a high
of 60 days.
Early in the period, the shape of the U.S. Treasury yield curve dictated
our involvement in the market. Strong tax receipts limited the need for
front-end issuance, which resulted in a steeper yield curve in the front end
and, therefore, greater participation of the Fund in the three-month sector of
the yield curve. Robust economic data coupled with growing inflation fears gave
us reason to be concerned that a shift in Fed policy was forthcoming. Taking
our cues from the Federal Funds futures market, we realized gains in the front
end of the curve, which enabled us to pare down holdings in the longer end. Our
objective was to reduce the Fund's average life from the high-50-day area to
the low-40-day area, where it remained for the majority of the period.
We focused investments around the impending FOMC meeting dates, when we
believed investors' liquidity needs would be the greatest. While our focus was
on a strong liquidity base, we determined that the six-month area was the
fulcrum of the yield curve and, therefore, targeted that sector for yield
enhancement and price appreciation. After increasing the target for the Federal
Funds rate 0.25% for the first time in June, we believed the Fed would raise
rates at almost every subsequent meeting until reaching an initial Federal
Funds level of 2.00% - 2.25%. As a result, we were less inclined to place
longer commitments further out the yield curve as rates on 10-year Treasuries
fell below 4.00%. As the Fund approached the end of the period, we shifted our
emphasis from the six-month sector to January 2005 maturities to prepare for
investors' year-end needs.
The Fund's current position provides it with the flexibility to readily
adapt to this dynamic environment. Despite recent gains in employment, the
current core rate of inflation does little to support the view for much higher
interest rates. On the supply front, a delay in raising the U.S. Treasury's
debt ceiling may disrupt impending supply as the Fund approaches year-end. As a
result, we may find opportunities that will allow us to extend the Fund's
average life if conditions appear oversold. Nevertheless, as the end of the
year approaches, the Fund will continue to favor a more conservative average
maturity as our task will remain to accommodate investors' liquidity needs.
Merrill Lynch Institutional Tax-Exempt Fund
For the six-month period ended October 31, 2004, Merrill Lynch
Institutional Tax-Exempt Fund's net annualized yield was 1.05%. The Fund's
seven-day net annualized yield as of October 31, 2004, was 1.51%. The Fund's
average portfolio maturity at October 31, 2004, was 53 days, compared to 48
days at April 30, 2004. During the period, the Fund's average maturity ranged
from a low of 38 days to a high of 59 days.
We began the six-month period with a more cautious approach to the
short-term municipal market. Strong job growth early in the period, coupled
with inflationary concerns, led investors to believe that the Fed would soon
end its accommodative monetary policy. The one-year London Interbank Offer Rate
(LIBOR) rose more than 100 basis points (1.00%) to the 2.40% range as investors
anticipated a series of interest rate hikes. One-year
3
equivalent municipal note yields rose by approximately 55 basis points to the
1.60% range, creating a steep yield curve between variable rate demand note
(VRDN) securities and longer-dated municipal notes for the first time in over
six months. Despite the relatively wide spread between VRDN and municipal note
yields, we limited our pursuit of longer-dated municipal notes to reduce our
overall position and bring the Fund's average life closer to its peer group
average. Favorable tax-exempt ratios persisted while tax-related redemptions
subsided and seasonal municipal issuance increased through the month of June.
The Fed increased short-term interest rates by 25 basis points at the June
FOMC meeting and again at the August FOMC meeting. Initially, these two
tightenings had a minimal impact on the short-term municipal floater market,
primarily because large seasonal subscriptions into money funds created demand
for VRDN securities. This large demand forced the ratio of VRDN securities
versus their taxable counterparts to decline to a more historical range of 65%
- - 70%. In addition, yields on longer-dated municipal notes declined to the
1.50% range, a ratio that mirrored the decline of the one-year LIBOR to the
2.25% range. The Fund experienced a large amount of subscriptions at this time,
and its net assets grew by more than $1 billion. The Fund performed well during
this time because our tax-exempt commercial paper holdings, which were greater
than our peer group average, outperformed yields on VRDN securities.
In September, we entered a period of seasonal weakness in the short-term
municipal market. A combination of low demand and quarter-end pressures on
dealer remarketing agents began to impact short-term municipal yields. Yields
on VRDN securities rose and ended the period at 90% - 95% of their taxable
counterparts while municipal note yields increased to the 1.80% range,
mirroring the rise of the one-year LIBOR to the 2.50% range. Another $1 billion
increase in the Fund's net assets took the Fund to a record high of $13.1
billion on September 14 and allowed us to concentrate and increase our VRDN
position to a level more comparable to our peer group average during the latter
months of the period. Although the Fund's net assets declined to end the period
at $11.8 billion, a combination of maturing lower-yielding municipal notes and
tax-exempt commercial paper allowed us to continue to offer an attractive
tax-exempt yield versus our taxable counterparts.
Overall, the Fund performed well versus its peer group as our conservative
investment strategy allowed us to be selective in our pursuit of longer-dated
municipal notes while taking advantage of attractive yield opportunities
offered on variable rate securities and tax-exempt commercial paper.
We look to continue our conservative investment approach while maintaining
a neutral average maturity relative to our peer group. We continue to monitor
the changing economic environment and the Fed's reaction. Finally, we intend to
maintain our credit quality while looking to offer shareholders an attractive
tax-exempt yield.
4
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
Merrill Lynch Funds For Manager
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 Merrill Lynch Treasury Fund
Tax-Exempt Fund Merrill Lynch Government Fund
December 20, 2004
5
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Merrill Lynch Premier Institutional Fund
Statement of Assets and Liabilities
October 31, 2004 (Unaudited)
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Assets:
Investment in the Master Premier Institutional Fund, at value
(identified cost $37,402,396,632) (Note 1a) ...................................... $37,391,084,704
Prepaid expense ................................................................... 15,992
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Total assets ................................................................... 37,391,100,696
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Liabilities:
Administration fee payable (Note 2) ............................................... 3,911,418
Dividends payable ................................................................. 19,178,677
Accrued expenses .................................................................. 1,461,245
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Total liabilities .............................................................. 24,551,340
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Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
37,377,861,284 shares of beneficial interest outstanding) ........................ $37,366,549,356
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Net Assets Consist of:
Paid-in capital ................................................................... $37,377,861,284
Unrealized depreciation ........................................................... (11,311,928)
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Total ............................................................................. $37,366,549,356
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Merrill Lynch Premier Institutional Fund
Statement of Operations
For the Six Months Ended October 31, 2004 (Unaudited)
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Investment Income:
Investment income allocated from the Master Premier Institutional Fund ................. $ 301,426,006
Expenses allocated from Master Premier Institutional Fund .............................. (10,678,276)
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Total investment income ............................................................. 290,747,730
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Expenses:
Administration fee (Note 2) ............................................................ 20,526,617
Registration fees ...................................................................... 2,513,864
Insurance .............................................................................. 438,861
Accounting services .................................................................... 431,761
Legal and audit fees ................................................................... 285,064
Dividend and transfer agency fees ...................................................... 215,061
Printing and shareholder reports ....................................................... 65,653
Trustees' fees (Note 5) ................................................................ 59,739
Miscellaneous .......................................................................... 107,447
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Total expense ....................................................................... 24,644,067
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Net investment income ............................................................... 266,103,663
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions allocated from
Master Premier Institutional Fund .................................... $ 91,558
Net unrealized depreciation of investments ............................ (10,623,929)
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Net realized and unrealized loss on investments ..................................... (10,532,371)
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Net Increase in Net Assets Resulting From Operations ................................... $ 255,571,292
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See Notes to Financial Statements.
6
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Six Months Year
Merrill Lynch Premier Institutional Fund Ended Ended
Statements of Changes in Net Assets (Unaudited) October 31, 2004 April 30, 2004
=======================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ........................................ $ 266,103,663 $ 522,041,220
Net realized gain from investment transactions ............... 91,558 3,079,426
Net unrealized depreciation of investments ................... (10,623,929) (28,102,314)
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Net increase in net assets resulting from operations ......... 255,571,292 497,018,332
Total declared as dividends to shareholders (Note 4) ......... (266,195,221) (525,120,646)
Capital share transactions (Note 3) .......................... (8,331,536,832) 1,160,152,122
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Net increase (decrease) in net assets ........................ (8,342,160,761) 1,132,049,808
Net Assets:
Beginning of period .......................................... 45,708,710,117 44,576,660,309
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End of period ................................................ $37,366,549,356 $45,708,710,117
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Merrill Lynch Premier Institutional Fund Six Months
Financial Highlights (Unaudited) Ended
October 31, 2004
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Net Asset Value, beginning of period ............. $ 1.00
Income from Investment Operations:
Net investment income ........................... .007
Less Distributions:
Dividends from net investment income ............ (.007)
Dividends from net realized gain ................ --
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Net Asset Value, end of period ................... $ 1.00
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Total Return ..................................... 0.66%(2)
Ratios/Supplemental Data:
Net Assets, end of period (000) ................. $37,366,549
Ratio of expenses to average net assets ......... .17%(3)
Ratio of net investment income to
average net assets ............................. 1.30%(3)
Merrill Lynch Premier Institutional Fund Year Ended April 30,
Financial Highlights (Unaudited) -----------------------------------------------------------------
2004 2003 2002 2001
----------------- --------------- --------------- ---------------
Net Asset Value, beginning of period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ........................... .011 .016 .030 .061
Less Distributions:
Dividends from net investment income ............ (.011) (.016) (.030) (.061)
Dividends from net realized gain ................ --(1) -- -- --
------------ ----------- ----------- -----------
Net Asset Value, end of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ =========== =========== ===========
Total Return ..................................... 1.06% 1.61% 3.00% 6.32%
Ratios/Supplemental Data:
Net Assets, end of period (000) ................. $45,708,710 $44,576,660 $46,368,190 $27,661,546
Ratio of expenses to average net assets ......... .16% .16% .17% .18%
Ratio of net investment income to
average net assets ............................. 1.04% 1.59% 2.82% 6.25%
Merrill Lynch Premier Institutional Fund Year Ended
Financial Highlights (Unaudited) April 30,
---------------
2000
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Net Asset Value, beginning of period ............. $ 1.00
Income from Investment Operations:
Net investment income ........................... .054
Less Distributions:
Dividends from net investment income ............ (.054)
Dividends from net realized gain ................ --
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Net Asset Value, end of period ................... $ 1.00
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Total Return ..................................... 5.51%
Ratios/Supplemental Data:
Net Assets, end of period (000) ................. $14,524,859
Ratio of expenses to average net assets ......... .18%
Ratio of net investment income to
average net assets ............................. 5.40%
(1) Amount represents less than $0.01 per share.
(2) Cumulative total return.
(3) On an annualized basis.
See Notes to Financial Statements.
7
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Merrill Lynch Institutional Fund
Statement of Assets and Liabilities
October 31, 2004 (Unaudited)
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Assets:
Investment in the Master Institutional Fund, at value
(identified cost $10,769,794,757) (Note 1a) ...................................... $10,766,957,372
Prepaid expense ................................................................... 468,829
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Total assets ................................................................... 10,767,426,201
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Liabilities:
Administration fee payable (Note 2) ............................................... 1,679,112
Dividends payable ................................................................. 741,315
Accrued expenses .................................................................. 381,701
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Total liabilities .............................................................. 2,802,128
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Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
10,767,461,458 shares of beneficial interest outstanding) ........................ $10,764,624,073
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Net Assets Consist of:
Paid-in capital ................................................................... $10,767,461,458
Unrealized depreciation ........................................................... (2,837,385)
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Total ............................................................................. $10,764,624,073
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Merrill Lynch Institutional Fund
Statement of Operations
For the Six Months Ended October 31, 2004 (Unaudited)
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Investment Income:
Interest allocated from the Master Institutional Fund ....................... $ 80,315,884
Expenses allocated from Master Institutional Fund ........................... (2,853,014)
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Total investment income .................................................. 77,462,870
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Expenses:
Administration fee (Note 2) ................................................. 8,149,787
Dividend and transfer agency fees ........................................... 814,537
Registration fees ........................................................... 420,204
Accounting services ......................................................... 107,070
Insurance ................................................................... 42,342
Printing and shareholder reports ............................................ 28,699
Legal and audit fees ........................................................ 21,660
Trustees' fees (Note 5) ..................................................... 14,938
Miscellaneous ............................................................... 46,520
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Total expense ............................................................ 9,645,757
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Net investment income .................................................... 67,817,113
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions allocated from
Master Institutional Fund .................................. $ 53,403
Net unrealized depreciation of investments .................. (3,060,787)
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Net realized and unrealized loss on investments .......................... (3,007,384)
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Net Increase in Net Assets Resulting From Operations ........................ $ 64,809,729
============
See Notes to Financial Statements.
8
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Six Months Year
Merrill Lynch Institutional Fund Ended Ended
Statements of Changes in Net Assets (Unaudited) October 31, 2004 April 30, 2004
========================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ........................................ $ 67,817,113 $ 116,226,768
Net realized gain from investment transactions ............... 53,403 580,917
Net unrealized depreciation of investments ................... (3,060,787) (5,844,766)
--------------- ----------------
Net increase in net assets resulting from operations ......... 64,809,729 110,962,919
Total declared as dividends to shareholders (Note 4) ......... (67,870,516) (116,807,685)
Capital share transactions (Note 3) .......................... 166,656,148 (1,052,145,990)
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Net increase (decrease) in net assets ........................ 163,595,361 (1,057,990,756)
Net Assets:
Beginning of period .......................................... 10,601,028,712 11,659,019,468
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End of period ................................................ $10,764,624,073 $ 10,601,028,712
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Merrill Lynch Institutional Fund Six Months
Financial Highlights (Unaudited) ----------------
Ended
October 31, 2004
================================================================================
Net Asset Value, beginning of period .......... $ 1.00
Income from Investment Operations:
Net investment income ........................ .006
Less Distributions:
Dividends from net investment income ......... (.006)
Dividends from net realized gain ............. --
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Net Asset Value, end of period ................ $ 1.00
=============
Total Return .................................. .63%(2)
Ratios/Supplemental Data:
Net Assets, end of period (000) .............. $10,764,624
Ratio of expenses to average net assets
(before waiver) ............................. .23%(3)
Ratio of expenses to average net assets
(after waiver) .............................. --
Ratio of net investment income to
average net assets (before waiver) .......... 1.25%(3)
Ratio of net investment income to
average net assets (after waiver) ........... --
Merrill Lynch Institutional Fund
Financial Highlights (Unaudited) Year Ended April 30,
--------------------------------------------------------------------------------
2004 2003 2002 2001 2000
================================================================================================================================
Net Asset Value, beginning of period .......... $ 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 period ................ $ 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 period (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.
(2) Cumulative total return.
(3) On an annualized basis.
See Notes to Financial Statements.
9
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Merrill Lynch Government Fund
Schedule of Investments
October 31, 2004 (Unaudited)
==============================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
==============================================================================================================
U.S. $ 50,000,000 Fannie Mae ........................... 7.13% 02/15/05 $ 50,718,750
Government 30,000,000 Fannie Mae ........................... 1.75 05/23/05 29,906,250
Agency 15,000,000 Fannie Mae ........................... 1.45 07/08/05 14,915,625
Issues -- 23.3% 14,275,000 Fannie Mae ........................... 2.00 10/21/05 14,217,008
15,000,000 Fannie Mae ........................... 2.30 11/14/05 14,976,563
15,000,000 Fannie Mae ........................... 3.00 09/20/06 15,056,250
17,000,000 Federal Farm Credit Banks ............ 1.50 04/01/05 16,946,875
7,000,000 Federal Farm Credit Banks ............ 5.85 06/10/05 7,149,891
25,000,000 Federal Home Loan Banks .............. 2.13 12/15/04 25,015,425
50,000,000 Federal Home Loan Banks .............. 4.13 01/14/05 50,203,126
25,000,000 Federal Home Loan Banks .............. 1.20 04/01/05 24,906,250
25,000,000 Federal Home Loan Banks .............. 1.63 06/15/05 24,898,437
25,000,000 Federal Home Loan Banks .............. 1.63 07/29/05 24,875,000
10,000,000 Federal Home Loan Banks .............. 2.00 10/20/05 9,956,250
30,000,000 Federal Home Loan Banks .............. 2.25 12/15/05 29,925,000
17,000,000 Federal Home Loan Banks .............. 3.10 11/08/06 17,000,000
27,000,000 Freddie Mac .......................... 1.46 11/17/04 27,000,000
25,000,000 Freddie Mac .......................... 3.88 02/15/05 25,132,812
15,000,000 Freddie Mac .......................... 2.29 10/28/05 14,979,765
10,000,000 Freddie Mac .......................... 2.13 11/15/05 9,965,625
15,000,000 Freddie Mac .......................... 2.14 02/24/06 14,918,250
25,000,000 Freddie Mac .......................... 3.00 11/09/06 25,000,000
100,000,000 Fannie Mae D/N ....................... 1.59 11/24/04 99,898,417
50,000,000 Fannie Mae D/N ....................... 1.22 02/04/05 49,735,000
25,000,000 Fannie Mae D/N ....................... 1.91 03/21/05 24,800,000
25,000,000 Federal Home Loan Banks D/N .......... 1.20 03/24/05 24,794,997
49,609,000 Freddie Mac D/N ...................... 1.25 11/02/04 49,607,277
9,505,000 Freddie Mac D/N ...................... 1.25 11/04/04 9,504,010
40,000,000 Freddie Mac D/N ...................... 1.62 12/01/04 39,946,000
38,000,000 Freddie Mac D/N ...................... 1.22 12/06/04 37,954,928
50,000,000 Freddie Mac D/N ...................... 1.76 12/21/04 49,878,125
75,000,000 Freddie Mac D/N ...................... 1.09 12/27/04 74,872,833
See Notes to Financial Statements.
10
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
==========================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
==========================================================================================================
U.S. $ 50,000,000 Freddie Mac D/N .................... 1.75% 12/28/04 $ 49,861,458
Government 25,000,000 Freddie Mac D/N .................... 1.38 12/30/04 24,943,458
Agency 50,000,000 Freddie Mac D/N .................... 1.76 01/04/05 49,830,000
Issues 100,000,000 Freddie Mac D/N .................... 1.22 01/11/05 99,620,000
(continued) 4,000,000 Freddie Mac D/N .................... 1.16 03/08/05 3,970,800
- ----------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Issues
(Cost $1,178,278,664) .............. 1,176,880,455
- ----------------------------------------------------------------------------------------------------------
U.S. Government 50,000,000 Fannie Mae ......................... 1.96 01/18/05 49,989,550
Agency Issues -- 50,000,000 Fannie Mae ......................... 2.02 01/28/05 49,994,050
Variable Rate -- 50,000,000 Fannie Mae ......................... 1.83 02/18/05 49,997,721
51.9% 250,000,000 Fannie Mae ......................... 1.82 04/28/05 249,981,564
50,000,000 Fannie Mae ......................... 1.92 07/06/05 49,981,950
500,000,000 Fannie Mae ......................... 1.83 07/29/05 499,944,181
75,000,000 Fannie Mae ......................... 1.84 08/29/05 74,970,447
75,000,000 Fannie Mae ......................... 1.61 02/17/06 74,976,074
50,000,000 Federal Farm Credit Banks .......... 1.80 12/02/04 50,000,000
100,000,000 Federal Farm Credit Banks .......... 1.78 12/15/04 99,999,402
48,400,000 Federal Farm Credit Banks .......... 1.77 02/28/05 48,398,424
100,000,000 Federal Farm Credit Banks .......... 1.77 03/24/05 99,992,175
75,000,000 Federal Farm Credit Banks .......... 1.73 10/03/05 74,972,353
100,000,000 Federal Farm Credit Banks .......... 1.78 10/27/05 99,960,451
25,000,000 Federal Farm Credit Banks .......... 1.76 12/01/05 24,997,268
25,000,000 Federal Farm Credit Banks .......... 1.76 12/05/05 24,995,429
50,000,000 Federal Farm Credit Banks .......... 1.77 12/05/05 49,994,436
150,000,000 Federal Farm Credit Banks .......... 1.76 01/04/06 149,977,950
28,000,000 Federal Farm Credit Banks .......... 1.74 01/05/06 27,990,183
150,000,000 Federal Farm Credit Banks .......... 1.77 01/27/06 149,962,827
100,000,000 Federal Farm Credit Banks .......... 1.78 02/13/06 99,987,168
75,000,000 Federal Farm Credit Banks .......... 1.77 09/01/06 74,985,154
60,000,000 Federal Home Loan Banks ............ 1.79 03/03/05 60,000,000
See Notes to Financial Statements.
11
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=========================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
=========================================================================================================
U.S. Government $ 100,000,000 Federal Home Loan Banks .......... 1.85% 07/26/05 $ 99,985,227
Agency Issues -- 50,000,000 Federal Home Loan Banks .......... 1.64 08/26/05 49,981,559
Variable Rate 50,000,000 Federal Home Loan Banks .......... 1.84 03/28/06 49,964,923
(continued) 150,000,000 Freddie Mac ...................... 1.83 09/09/05 150,022,682
33,962,000 Freddie Mac ...................... 1.67 11/07/05 33,966,244
- ---------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Issues -- Variable Rate
(Cost $2,619,977,153) ............ 2,619,969,392
- ---------------------------------------------------------------------------------------------------------
Repurchase 165,000,000 ABN AMRO Inc.,
Agreements** purchased on 10/29/04 ............ 1.87 11/01/04 165,000,000
- -- 25.4% 165,000,000 Barclays Capital Inc.,
purchased on 10/29/04 ............ 1.85 11/01/04 165,000,000
125,000,000 Countrywide Securities Corp.,
purchased on 10/29/04 ............ 1.83 11/01/04 125,000,000
170,000,000 Credit Suisse First Boston LLC,
purchased on 10/29/04 ............ 1.86 11/01/04 170,000,000
400,000,000 HSBC Securities (USA) Inc.,
purchased on 10/29/04 ............ 1.86 11/01/04 400,000,000
30,182,000 State Street Bank & Trust,
purchased on 10/29/04 ............ 1.79 11/01/04 30,182,000
225,000,000 UBS Securities,
purchased on 10/29/04 ............ 1.85 11/01/04 225,000,000
- ---------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $1,280,182,000) ............ 1,280,182,000
- ---------------------------------------------------------------------------------------------------------
Total Investments -- 100.6%
(Cost $5,078,437,817) ............ 5,077,031,847
- ---------------------------------------------------------------------------------------------------------
Liabilities in Excess of
Other Assets -- (0.6%) ........... (31,388,156
- ---------------------------------------------------------------------------------------------------------
Net Assets -- Equivalent to $1.00
Per Share on 5,047,049,661
Shares of Beneficial Interest
Outstanding -- 100.0% ............ $5,045,643,691
=========================================================================================================
See Notes to Financial Statements.
12
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================
Note -- Costs for federal income tax purposes are the same as those shown
above. At October 31, 2004, net unrealized depreciation amounted to
$1,405,970 and is comprised of $58,053 in appreciation and $1,464,023 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 October 31, 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.
13
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Statement of Assets and Liabilities
October 31, 2004 (Unaudited)
================================================================================
Assets:
Investments in securities subject to repurchase agreements ........................ $1,280,182,000
Investments in other marketable securities ........................................ 3,796,849,847
--------------
Total investments at value (identified cost $5,078,437,817) (Note 1a) ............................ $5,077,031,847
Cash ................................................................................................ 6,295,813
Interest receivable ................................................................................. 6,011,799
Prepaid expense ..................................................................................... 30,929
--------------
Total assets ..................................................................................... 5,089,370,388
--------------
Liabilities:
Advisory fee payable (Note 2) ....................................................................... 1,020,525
Payable for investments purchased ................................................................... 42,000,000
Accrued expenses .................................................................................... 492,752
Dividends payable ................................................................................... 213,420
--------------
Total liabilities ................................................................................ 43,726,697
--------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
5,047,049,661 shares of beneficial interest outstanding) ........................................... $5,045,643,691
==============
Net Assets Consist of:
Paid-in capital ..................................................................................... $5,047,049,661
Unrealized depreciation ............................................................................. (1,405,970)
--------------
Total ............................................................................................... $5,045,643,691
==============
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Statement of Operations
For the Six Months Ended October 31, 2004 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income:
Interest and discount earned ........................................... $38,998,784
-----------
Expenses:
Investment advisory fee (Note 2) ....................... $ 8,515,473
Registration fees ...................................... 480,012
Dividend and transfer agency fees ...................... 154,937
Accounting and custodian services ...................... 125,591
Insurance .............................................. 19,759
Legal and audit fees ................................... 16,411
Printing and shareholder reports ....................... 8,773
Trustees' fees (Note 5) ................................ 8,151
Miscellaneous .......................................... 27,677
------------
Total expense ....................................... 9,356,784
Waived investment advisory fee (Note 2) ................ (2,922,053) 6,434,731
------------ -----------
Net investment income ............................................... 32,564,053
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ......... 4,501
Net unrealized depreciation of investments ............. (926,420)
------------
Net realized and unrealized loss from investments ................... (921,919)
-----------
Net Increase in Net Assets Resulting From Operations ................... $31,642,134
===========
See Notes to Financial Statements.
14
- ------------------------------------------------------------------------------------------------------
Merrill Lynch Government Fund Six Months Year
Statements of Changes in Net Assets (Unaudited) Ended Ended
October 31, 2004 April 30, 2004
======================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ........................................ $ 32,564,053 $ 54,036,646
Net realized gain from investment transactions ............... 4,501 212,509
Net unrealized depreciation of investments ................... (926,420) (3,326,277)
-------------- --------------
Net increase in net assets resulting from operations ......... 31,642,134 50,922,878
Total declared as dividends to shareholders (Note 4) ......... (32,568,554) (54,249,155)
Capital share transactions (Note 3) .......................... (512,463,607) 228,228,885
-------------- --------------
Net increase (decrease) in net assets ........................ (513,390,027) 224,902,608
Net Assets:
Beginning of period .......................................... 5,559,033,718 5,334,131,110
-------------- --------------
End of period ................................................ $5,045,643,691 $5,559,033,718
============== ==============
- ------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund Six Months
Financial Highlights (Unaudited) Ended
October 31, 2004
================================================================================
Net Asset Value, beginning of period .......... $ 1.00
Income from Investment Operations:
Net investment income ........................ .006
Less Distributions:
Dividends from net investment income ......... (.006)
Dividends from net realized gain ............. --
-------------
Net Asset Value, end of period ................ $ 1.00
=============
Total Return .................................. .59%(2)
Ratios/Supplemental Data:
Net Assets, end of period (000) .............. $ 5,045,644
Ratio of expenses to average net assets
(before waiver) ............................. .33%(3)
Ratio of expenses to average net assets
(after waiver) .............................. .23%(3)
Ratio of net investment income to
average net assets (before waiver) .......... 1.06%(3)
Ratio of net investment income to
average net assets (after waiver) ........... 1.16%(3)
Merrill Lynch Government Fund Year Ended April 30,
Financial Highlights (Unaudited) ----------------------------------------------------------------------------
2004 2003 2002 2001 2000
============================================================================================================================
Net Asset Value, beginning of period .......... $ 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 period ................ $ 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 period (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.
(2) Cumulative total return.
(3) On an annualized basis.
See Notes to Financial Statements.
15
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Schedule of Investments
October 31, 2004 (Unaudited)
==========================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
==========================================================================================================
U.S. $ 150,000,000 U.S. Treasury Bills .......... 1.43% 11/04/04 $ 149,982,142
Government 8,810,000 U.S. Treasury Bills .......... 1.52 11/04/04 8,808,884
Issues -- 99.6% 50,000,000 U.S. Treasury Bills .......... 1.55 11/04/04 49,993,552
15,287,000 U.S. Treasury Bills .......... 1.58 11/04/04 15,284,987
54,212,000 U.S. Treasury Bills .......... 1.56 11/12/04 54,186,165
30,000,000 U.S. Treasury Bills .......... 1.57 11/12/04 29,985,608
50,000,000 U.S. Treasury Bills .......... 1.58 11/12/04 49,975,861
100,000,000 U.S. Treasury Bills .......... 1.60 11/12/04 99,951,249
753,000 U.S. Treasury Bills .......... 1.69 11/18/04 752,399
10,520,000 U.S. Treasury Bills .......... 1.36 11/26/04 10,510,064
1,833,000 U.S. Treasury Bills .......... 1.65 12/02/04 1,830,404
16,502,000 U.S. Treasury Bills .......... 1.63 12/09/04 16,473,607
50,000,000 U.S. Treasury Bills .......... 1.64 12/09/04 49,913,708
15,000,000 U.S. Treasury Bills .......... 1.66 01/06/05 14,949,947
12,723,000 U.S. Treasury Bills .......... 1.76 01/06/05 12,680,544
858,000 U.S. Treasury Bills .......... 1.77 01/06/05 855,137
710,000 U.S. Treasury Bills .......... 1.79 01/06/05 707,631
3,246,000 U.S. Treasury Bills .......... 1.82 01/06/05 3,235,099
50,000,000 U.S. Treasury Bills .......... 1.69 01/13/05 49,813,250
10,000,000 U.S. Treasury Bills .......... 1.72 01/13/05 9,962,650
75,000,000 U.S. Treasury Bills .......... 1.85 01/13/05 74,719,875
20,000,000 U.S. Treasury Bills .......... 1.86 01/27/05 19,909,620
25,000,000 U.S. Treasury Bills .......... 1.88 01/27/05 24,887,025
25,000,000 U.S. Treasury Bills .......... 1.72 02/03/05 24,875,648
25,000,000 U.S. Treasury Bills .......... 1.73 02/03/05 24,875,648
15,000,000 U.S. Treasury Bills .......... 1.75 02/03/05 14,925,388
25,000,000 U.S. Treasury Bills .......... 1.73 02/17/05 24,854,125
50,000,000 U.S. Treasury Bills .......... 1.77 02/24/05 49,686,950
10,000,000 U.S. Treasury Bills .......... 1.91 03/17/05 9,923,880
10,000,000 U.S. Treasury Bills .......... 1.95 03/24/05 9,919,170
6,000,000 U.S. Treasury Bills .......... 1.94 03/31/05 5,948,874
25,000,000 U.S. Treasury Bills .......... 1.95 03/31/05 24,786,975
79,175,000 U.S. Treasury Notes .......... 5.88 11/15/04 79,300,476
165,350,000 U.S. Treasury Notes .......... 2.00 11/30/04 165,387,811
See Notes to Financial Statements.
16
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
==========================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
==========================================================================================================
U.S. $ 25,000,000 U.S. Treasury Notes ................. 1.75% 12/31/04 $ 24,992,200
Government 1,000,000 U.S. Treasury Notes ................. 1.50 02/28/05 998,320
Issues 10,000,000 U.S. Treasury Notes ................. 1.63 03/31/05 9,982,030
(continued) 2,500,000 U.S. Treasury Notes ................. 1.63 09/30/05 2,487,012
Total Investments -- 99.6%
- ----------------------------------------------------------------------------------------------------------
(Cost $1,222,496,780) .......... 1,222,313,915
- ----------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.4% 5,183,998
- ----------------------------------------------------------------------------------------------------------
Net Assets -- Equivalent to $1.00
Per Share on 1,227,680,778
Shares of Beneficial Interest
Outstanding -- 100.0% .......... $1,227,497,913
==========================================================================================================
Note -- Costs for federal income tax purposes are the same as those shown
above. At October 31, 2004, net unrealized depreciation amounted to
$182,865 and is comprised of $1,584 in appreciation and $184,449 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.
17
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Statement of Assets and Liabilities
October 31, 2004 (Unaudited)
======================================================================================================
Assets:
Total investments at value (identified cost $1,222,496,780) (Note 1a) .............. $1,222,313,915
Cash ............................................................................... 1,727,599
Interest receivable ................................................................ 3,708,120
Prepaid expense .................................................................... 59,266
--------------
Total assets .................................................................... 1,227,808,900
--------------
Liabilities:
Advisory fee payable (Note 2) ...................................................... 249,895
Accrued expenses ................................................................... 44,873
Dividends payable .................................................................. 16,219
--------------
Total liabilities ............................................................... 310,987
--------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
1,227,680,778 shares of beneficial interest outstanding) ........................... $1,227,497,913
==============
Net Assets Consist of:
Paid-in capital .................................................................... $1,227,680,778
Unrealized depreciation ............................................................ (182,865)
--------------
Total .............................................................................. $1,227,497,913
==============
- ------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Statement of Operations
For the Six Months Ended October 31, 2004 (Unaudited)
======================================================================================================
Investment Income:
Interest and discount earned .......................................................... $7,986,886
----------
Expenses:
Investment advisory fee (Note 2) ..................................... $2,044,715
Registration fees .................................................... 108,997
Dividend and transfer agency fees .................................... 63,660
Accounting and custodian services .................................... 58,628
Insurance ............................................................ 5,646
Legal and audit fees ................................................. 5,511
Trustees' fees (Note 5) .............................................. 2,176
Printing and shareholder reports ..................................... 2,081
Miscellaneous ........................................................ 17,060
----------
Total expense ..................................................... 2,308,474
Waived investment advisory fee (Note 2) .............................. (811,800) 1,496,674
---------- ----------
Net investment income .............................................................. 6,490,212
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ....................... 12,176
Net unrealized depreciation of investments ........................... (217,110)
----------
Net realized and unrealized loss from investments .................................. (204,934)
----------
Net Increase in Net Assets Resulting From Operations .................................. $6,285,278
==========
See Notes to Financial Statements.
18
- -------------------------------------------------------------------------------------------------------
Merrill Lynch Treasury Fund Six Months Year
Statements of Changes in Net Assets (Unaudited) Ended Ended
October 31, 2004 April 30, 2004
=======================================================================================================
Decrease in Net Assets:
Operations:
Net investment income ........................................ $ 6,490,212 $ 10,527,637
Net realized gain from investment transactions ............... 12,176 110,131
Net unrealized depreciation of investments ................... (217,110) (435,562)
-------------- --------------
Net increase in net assets resulting from operations ......... 6,285,278 10,202,206
Total declared as dividends to shareholders (Note 4) ......... (6,502,388) (10,637,768)
Capital share transactions (Note 3) .......................... (116,358,679) (143,476,256)
-------------- --------------
Net decrease in net assets ................................... (116,575,789) (143,911,818)
Net Assets:
Beginning of period .......................................... 1,344,073,702 1,487,985,520
-------------- --------------
End of period ................................................ $1,227,497,913 $1,344,073,702
============== ==============
- -------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund Six Months
Financial Highlights (Unaudited) Ended
October 31, 2004
================================================================================
Net Asset Value, beginning of period ....... $ 1.00
Income from Investment Operations:
Net investment income ..................... .005
Less Distributions:
Dividends from net investment income ...... (.005)
-------------
Net Asset Value, end of period ............. $ 1.00
=============
Total Return ............................... .53%(1)
Ratios/Supplemental Data:
Net Assets, end of period (000) ........... $ 1,227,498
Ratio of expenses to average net assets
(before waiver) .......................... .37%(2)
Ratio of expenses to average net assets
(after waiver) ........................... .24%(2)
Ratio of net investment income to
average net assets (before waiver) ....... .92%(2)
Ratio of net investment income to
average net assets (after waiver) ........ 1.05%(2)
- --------------------------------------------------------------------------------------------------------------------
Merrill Lynch Treasury Fund Year Ended April 30,
Financial Highlights (Unaudited) -----------------------------------------------------------------------
2004 2003 2002 2001 2000
====================================================================================================================
Net Asset Value, beginning of period ....... $ 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 period ............. $ 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 period (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%
(1) Cumulative total return.
(2) On an annualized basis.
See Notes to Financial Statements.
19
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
Statement of Assets and Liabilities
October 31, 2004 (Unaudited)
======================================================================================================
Assets:
Investment in the Master Institutional Tax-Exempt Fund, at value (Note 1a) ........ $11,761,331,336
Prepaid expense ................................................................... 57,484
---------------
Total assets ................................................................... 11,761,388,820
---------------
Liabilities:
Administration fee payable (Note 2) ............................................... 1,889,194
Accrued expenses .................................................................. 897,137
Dividends payable ................................................................. 593,267
---------------
Total liabilities .............................................................. 3,379,598
---------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
11,757,869,576 shares of beneficial interest outstanding) ........................ $11,758,009,222
===============
Net Assets Consist of:
Paid-in capital ................................................................... $11,757,961,739
Accumulated net realized gain ..................................................... 46,335
Undistributed net investment income ............................................... 1,148
---------------
Total ............................................................................. $11,758,009,222
===============
- ------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
Statement of Operations
For the Six Months Ended October 31, 2004 (Unaudited)
==========================================================================================
Investment Income:
Interest allocated from the Master Institutional Tax-Exempt Fund ......... $ 77,029,380
Expenses allocated from Master Institutional Tax-Exempt Fund ............. (3,150,468)
------------
Total investment income ............................................... 73,878,912
------------
Expenses:
Administration fee (Note 2) .............................................. 9,006,393
Registration fees ........................................................ 805,522
Dividend and transfer agency fees ........................................ 530,361
Accounting services ...................................................... 171,521
Legal and audit fees ..................................................... 54,496
Insurance ................................................................ 36,696
Printing and shareholder reports ......................................... 17,177
Trustees' fees (Note 5) .................................................. 15,876
Miscellaneous ............................................................ 21,031
------------
Total expense ......................................................... 10,659,073
------------
Net investment income ................................................. 63,219,839
Net realized loss on investment transactions allocated from the
Master Institutional Tax-Exempt Fund .................................... (132,039)
------------
Net Increase in Net Assets Resulting From Operations ..................... $ 63,087,800
============
See Notes to Financial Statements.
20
- -----------------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund Six Months Year
Statements of Changes in Net Assets (Unaudited) Ended Ended
October 31, 2004 April 30, 2004
=================================================================================================================
Increase in Net Assets:
Operations:
Net investment income ................................................ $ 63,219,839 $ 85,298,877
Net realized gain (loss) from investment transactions ................ (132,039) 160,307
--------------- ---------------
Net increase in net assets resulting from operations ................. 63,087,800 85,459,184
Total declared as dividends to shareholders (Note 4) ................. (63,218,691) (85,277,561)
Capital share transactions (Note 3) .................................. 734,827,600 2,837,610,314
--------------- ---------------
Net increase in net assets ........................................... 734,696,709 2,837,791,937
Net Assets:
Beginning of period .................................................. 11,023,312,513 8,185,520,576
--------------- ---------------
End of period, including undistributed net investment income of $1,148
and $541, respectively (Note 1f) .................................... $11,758,009,222 $11,023,312,513
=============== ===============
- -----------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund Six Months
Financial Highlights (Unaudited) Ended
October 31, 2004
================================================================================
Net Asset Value, beginning of period .......... $ 1.00
Income from Investment Operations:
Net investment income ........................ .005
Less Distribution:
Dividends from net investment income ......... (.005)
--------------
Net Asset Value, end of period ................ $ 1.00
==============
Total Return .................................. .53%(1)
Ratios/Supplemental Data:
Net Assets, end of period (000) .............. $ 11,758,009
Ratio of expenses to average net assets
(before waiver) ............................. .23%(2)
Ratio of expenses to average net assets
(after waiver) .............................. --
Ratio of net investment income, to
average net assets (before waiver) .......... 1.05%(2)
Ratio of net investment income, to
average net assets (after waiver) ........... --
- ---------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund Year Ended April 30,
Financial Highlights (Unaudited) ---------------------------------------------------------------------------
2004 2003 2002 2001 2000
===========================================================================================================================
Net Asset Value, beginning of period .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ........................ .01 .01 .02 .04 .03
Less Distribution:
Dividends from net investment income ......... (.01) (.01) (.02) (.04) (.03)
----------- ---------- ---------- ---------- ----------
Net Asset Value, end of period ................ $ 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 period (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%
(1) Cumulative total return.
(2) On an annualized basis.
See Notes to Financial Statements.
21
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institution Series
Notes to Financial Statements (Unaudited)
================================================================================
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 (Note 6).
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 October 31, 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 Fund
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.
22
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institution Series
Notes to Financial Statements -- Continued (Unaudited)
================================================================================
(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 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. For the year ended
April 30, 2004, Merrill Lynch Institutional Tax-Exempt Fund reclassified
$20,775 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 .35% up to and including $500,000,000
Treasury Fund ......... 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 six months ended October 31, 2004, FAM waived a portion of its
fees amounting to $2,922,053 for the Government Fund and $811,800 for the
Treasury Fund.
FAM provides certain administrative services to the Premier Institutional
Fund, Institutional Fund and Institutional Tax-Exempt Fund, for a fee at an
annual rate of 0.10%, 0.15% and 0.15%, respectively, of average daily net
assets.
All officers and certain trustees of the Trust are affiliated with Merrill
Lynch & Co., Inc.
23
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institution Series
Notes to Financial Statements -- Continued (Unaudited)
================================================================================
3. Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
shares of beneficial interest in the Premier Institutional Fund, Institutional
Fund, Government Fund and Treasury Fund ($.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:
Period Year
Ended Ended
October 31, April 30,
Premier Institutional Fund 2004 2004
- -------------------------- --------------- ---------------
Shares sold ......................... 228,898,417,455 554,226,255,613
Shares issued to shareholders in
reinvestment of dividends ......... 159,288,507 312,747,388
--------------- ---------------
Total ........................... 229,057,705,962 554,539,003,001
Shares redeemed ..................... 237,389,242,794 553,378,850,879
--------------- ---------------
Net increase (decrease) ......... (8,331,536,832) 1,160,152,122
=============== ===============
Period Year
Ended Ended
October 31, April 30,
Institutional Fund 2004 2004
- ------------------ -------------- ---------------
Shares sold ......................... 34,183,022,926 75,814,508,839
Shares issued to shareholders in
reinvestment of dividends ......... 61,419,934 99,162,602
-------------- --------------
Total ........................... 34,244,442,860 75,913,671,441
Shares redeemed ..................... 34,077,786,712 76,965,817,431
-------------- --------------
Net increase (decrease) ......... 166,656,148 (1,052,145,990)
============== ==============
Period Year
Ended Ended
October 31, April 30,
Government Fund 2004 2004
- --------------- -------------- --------------
Shares sold ......................... 13,274,564,622 37,443,523,337
Shares issued to shareholders in
reinvestment of dividends ......... 30,507,953 48,721,944
-------------- --------------
Total ........................... 13,305,072,575 37,492,245,281
Shares redeemed ..................... 13,817,536,182 37,264,016,396
-------------- --------------
Net increase (decrease) ......... (512,463,607) 228,228,885
============== ==============
Period Year
Ended Ended
October 31, April 30,
Treasury Fund 2004 2003
- ------------- ------------- -------------
Shares sold ......................... 1,214,746,916 4,139,225,382
Shares issued to shareholders in
reinvestment of dividends ......... 6,317,754 10,147,943
------------- -------------
Total ........................... 1,221,064,670 4,149,373,325
Shares redeemed ..................... 1,337,423,349 4,292,849,581
------------- -------------
Net decrease .................... (116,358,679) (143,476,256)
============= =============
Period Year
Ended Ended
Institutional October 31, April 30,
Tax-Exempt Fund 2004 2004
- --------------- -------------- --------------
Shares sold ......................... 22,090,659,997 37,984,362,489
Shares issued to shareholders in
reinvestment of dividends ......... 57,987,333 78,878,999
-------------- --------------
Total ........................... 22,148,647,330 38,063,241,488
Shares redeemed ..................... 21,413,819,730 35,225,631,174
-------------- --------------
Net increase .................... 734,827,600 2,837,610,314
============== ==============
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.
24
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institution Series
Notes to Financial Statements -- Continued (Unaudited)
================================================================================
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. Effective January 1, 2004, the Chairman of the Audit
Committee receives an additional annual retainer in the amount of $5,000.
Trustees' fees are allocated among the five series of the Trust based on the
net assets under management.
25
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments
October 31, 2004 (Unaudited)
=======================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
=======================================================================================================================
$ 122,000,000 U.S. Treasury Notes ................... 1.63% 10/31/05 $ 121,266,060
U.S. 75,000,000 U.S. Treasury Notes ................... 1.50 03/31/06 74,118,150
Government & 80,000,000 U.S. Treasury Notes ................... 2.50 09/30/06 79,934,400
Agency Issues -- 300,000,000 Fannie Mae ............................ 3.88 03/15/05 302,062,500
9.4% 100,000,000 Fannie Mae ............................ 7.00 07/15/05 103,250,000
150,000,000 Fannie Mae ............................ 2.11 08/26/05 149,671,875
200,000,000 Fannie Mae ............................ 1.88 09/15/05 199,125,000
174,000,000 Fannie Mae ............................ 2.10 10/21/05 173,510,625
69,400,000 Fannie Mae ............................ 2.25 02/28/06 69,118,062
162,000,000 Fannie Mae ............................ 3.00 09/20/06 162,607,500
100,000,000 Federal Home Loan Banks ............... 1.50 05/13/05 99,593,750
175,000,000 Federal Home Loan Banks ............... 1.75 08/15/05 174,179,688
100,000,000 Federal Home Loan Banks ............... 3.00 08/15/05 100,500,000
321,500,000 Federal Home Loan Banks ............... 1.50 08/26/05 319,289,688
30,000,000 Federal Home Loan Banks ............... 2.00 07/07/06 29,662,500
220,000,000 Freddie Mac ........................... 1.50 05/13/05 219,138,040
100,000,000 Freddie Mac ........................... 2.15 10/28/05 99,728,810
125,000,000 Freddie Mac ........................... 2.29 10/28/05 124,831,375
177,700,000 Freddie Mac ........................... 2.41 11/04/05 177,654,153
170,000,000 Freddie Mac ........................... 2.30 11/17/05 169,734,375
87,360,000 Freddie Mac ........................... 2.20 12/01/05 87,110,937
140,000,000 Freddie Mac ........................... 2.35 12/09/05 139,804,980
125,000,000 Freddie Mac ........................... 2.50 12/15/05 124,496,250
200,000,000 Freddie Mac ........................... 3.01 11/09/06 200,000,000
- -----------------------------------------------------------------------------------------------------------------------
Total U.S. Government & Agency
Issues (Cost $3,508,983,317) .......... 3,500,388,718
- -----------------------------------------------------------------------------------------------------------------------
U.S. Government 400,000,000 Fannie Mae ............................ 1.83 02/18/05 399,981,767
Agency Issues -- 800,000,000 Fannie Mae ............................ 1.81 03/16/05 799,985,152
Variable Rate -- 550,000,000 Fannie Mae ............................ 1.86 03/23/05 549,956,981
28.7% 1,500,000,000 Fannie Mae ............................ 1.79 08/17/05 1,499,643,373
1,500,000,000 Fannie Mae ............................ 1.84 08/29/05 1,499,408,945
800,000,000 Fannie Mae ............................ 1.68 09/06/05 799,596,957
1,600,000,000 Fannie Mae ............................ 1.75 09/15/05 1,599,299,478
650,000,000 Fannie Mae ............................ 1.89 10/03/05 649,457,250
158,500,000 Federal Farm Credit Banks ............. 1.77 11/04/04 158,500,000
See Notes to Financial Statements.
26
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=======================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
=======================================================================================================================
U.S. Government $ 300,000,000 Federal Farm Credit Banks ................. 1.81% 11/22/04 $ 299,996,553
Agency Issues -- 200,000,000 Federal Farm Credit Banks ................. 1.75 12/02/04 199,998,301
Variable Rate 98,000,000 Federal Farm Credit Banks ................. 1.75 05/02/05 97,990,240
(continued) 100,000,000 Federal Farm Credit Banks ................. 0.80 05/19/05 99,994,555
196,000,000 Federal Farm Credit Banks ................. 1.78 06/13/05 195,987,988
75,000,000 Federal Farm Credit Banks ................. 1.82 09/19/05 74,999,604
163,900,000 Federal Farm Credit Banks ................. 1.83 02/21/06 163,857,201
111,000,000 Federal Farm Credit Banks ................. 1.78 03/08/06 111,000,000
50,000,000 Federal Farm Credit Banks ................. 1.83 04/18/06 49,999,182
190,000,000 Federal Farm Credit Banks ................. 1.81 05/19/06 189,941,336
100,000,000 Federal Farm Credit Banks ................. 1.91 08/28/06 99,963,595
100,000,000 Federal Farm Credit Banks ................. 1.00 11/01/06 99,980,000
80,000,000 Federal Farm Credit Banks ................. 1.79 02/12/07 79,981,759
116,000,000 Federal Farm Credit Banks ................. 1.86 02/20/08 115,961,693
100,000,000 Federal Farm Credit Banks ................. 1.87 03/20/08 100,000,000
24,000,000 Federal Farm Credit Banks ................. 1.86 06/20/08 23,991,168
100,000,000 Federal Farm Credit Banks ................. 1.83 07/17/08 99,962,945
100,000,000 Federal Farm Credit Banks ................. 1.82 01/14/09 99,918,503
80,000,000 Federal Farm Credit Banks ................. 1.79 02/12/09 79,931,516
200,000,000 Federal Home Loan Banks ................... 1.75 08/02/05 199,977,427
300,000,000 Federal Home Loan Banks ................... 1.74 10/03/05 299,871,696
- -----------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Issues -- Variable Rate
(Cost $10,739,287,535) .................... 10,739,135,165
- -----------------------------------------------------------------------------------------------------------------------
Certificates of 800,000,000 Wells Fargo Bank, NA ...................... 1.82 11/19/04 800,000,000
Deposit -- 2.1%
- -----------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit
(Cost $800,000,000) .............................. 800,000,000
- -----------------------------------------------------------------------------------------------------------------------
Euro Certificates 250,000,000 ABN-AMRO Bank N.V., London ................ 2.02 04/19/05 249,702,650
of Deposit -- 205,000,000 Barclays Bank Plc ......................... 2.15 06/07/05 204,778,887
4.6% 200,000,000 Calyon .................................... 2.15 06/07/05 199,784,280
190,000,000 Credit Agricole Indosuez, London .......... 1.13 12/30/04 189,996,870
250,000,000 HBOS Treasury Services Plc ................ 2.19 06/09/05 249,785,150
See Notes to Financial Statements.
27
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=============================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
=============================================================================================================================
Euro Certificates $ 100,000,000 Landesbank Hessen Thuringen
of Deposit Girozentrale, London .................. 1.87% 12/30/04 $ 100,011,372
(continued) 35,000,000 Northern Rock Plc ....................... 2.10 06/01/05 34,954,440
375,000,000 Societe Generale ........................ 2.03 04/19/05 374,571,487
125,000,000 Societe Generale ........................ 2.10 06/01/05 124,837,413
- -----------------------------------------------------------------------------------------------------------------------------
Total Euro Certificates of Deposit
(Cost $1,730,008,241) ................... 1,728,422,549
- -----------------------------------------------------------------------------------------------------------------------------
Yankee 50,000,000 ABN-AMRO Bank N.V., Chicago ............. 1.11 12/31/04 49,919,067
Certificates of 165,000,000 BNP Paribas, NY ......................... 2.06 03/31/05 164,869,497
Deposit -- 2.5% 85,000,000 Fortis Bank, NY ......................... 2.19 06/09/05 84,927,455
375,000,000 HBOS Treasury Services Plc .............. 2.06 03/31/05 374,702,700
200,000,000 Rabobank Nederland N.V., NY ............. 2.03 04/29/05 199,752,383
50,000,000 SwedBank ................................ 1.39 11/15/04 49,999,713
- -----------------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of Deposit
(Cost $924,960,732) ..................... 924,170,815
- -----------------------------------------------------------------------------------------------------------------------------
Yankee 335,000,000 BNP Paribas, NY ......................... 1.80 04/26/05 334,967,467
Certificates of 210,000,000 Credit Agricole Indosuez, NY ............ 1.80 04/19/05 209,985,473
Deposit -- 400,000,000 Rabobank Nederland N.V., NY ............. 1.79 05/03/05 399,954,877
Variable Rate -- 500,000,000 Svenska Handelsbanken AB, NY ............ 1.79 04/25/05 499,951,744
4.1% 100,000,000 SwedBank ................................ 1.86 01/21/05 99,996,647
- -----------------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of
Deposit -- Variable Rate
(Cost $1,544,856,208) ................... 1,544,856,208
- -----------------------------------------------------------------------------------------------------------------------------
Bank 75,000,000 U.S. Bank National Association .......... 2.03 04/29/05 74,894,025
Notes -- 0.2%
- -----------------------------------------------------------------------------------------------------------------------------
Total Bank Notes
(Cost $75,000,000) ...................... 74,894,025
- -----------------------------------------------------------------------------------------------------------------------------
Bank Notes -- 50,000,000 National City Bank, Ohio ................ 1.88 10/31/05 49,997,386
Variable Rate --
0.1%
- -----------------------------------------------------------------------------------------------------------------------------
Total Bank Notes -- Variable Rate
(Cost $49,997,386) ...................... 49,997,386
- -----------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
28
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
========================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
========================================================================================================================
Corporate $ 50,000,000 Links Finance LLC ...................... 1.50% 11/15/04 $ 50,000,000
Notes -- 0.1%
- ------------------------------------------------------------------------------------------------------------------------
Total Corporate Notes
(Cost $50,000,000) ..................... 50,000,000
- ------------------------------------------------------------------------------------------------------------------------
Corporate 215,000,000 Arlo III Limited, Series 2004 Notes .... 2.12 10/27/05 215,000,000
Notes -- 84,000,000 Associates Corp. of North America ...... 2.05 06/27/05 84,058,884
Variable Rate -- 200,000,000 Beta Finance Inc. ...................... 1.81 02/15/05 199,993,200
15.8% 55,000,000 CC (USA) Inc., (Centauri) .............. 1.75 03/07/05 54,986,360
77,000,000 CC (USA) Inc., (Centauri) .............. 1.79 03/10/05 76,982,598
225,000,000 Dorada Finance Inc. .................... 1.81 04/26/05 224,994,825
300,000,000 Fifth Third Bank ....................... 1.92 11/23/05 300,000,000
200,000,000 General Electric Capital Corp. ......... 1.99 11/17/05 200,198,000
469,500,000 Goldman Sachs Group, Inc. .............. 1.86 11/15/05 469,424,833
246,000,000 Household Finance Corp. ................ 1.92 10/28/05 245,923,494
150,000,000 K2 (USA) LLC ........................... 1.89 09/26/05 149,966,865
200,000,000 K2 (USA) LLC ........................... 1.91 09/28/05 199,957,220
150,000,000 Lehman Brothers Holdings Inc. .......... 1.91 11/22/05 150,011,100
100,000,000 Links Finance LLC ...................... 1.82 04/15/05 100,001,800
50,000,000 Links Finance LLC ...................... 1.82 05/13/05 49,998,255
108,000,000 Metropolitan Life Global Funding ....... 1.91 11/15/05 107,998,812
50,000,000 Morgan Stanley ......................... 1.99 08/15/05 50,028,650
234,000,000 Morgan Stanley ......................... 1.84 11/04/05 233,992,278
280,000,000 Morgan Stanley ......................... 1.87 11/15/05 279,965,000
197,200,000 Morgan Stanley ......................... 1.96 11/25/05 197,204,161
140,000,000 Nationwide Building Society ............ 1.96 10/28/05 139,971,314
215,000,000 Northern Rock Plc ...................... 1.87 10/07/05 214,945,798
198,000,000 Permanent Financing Plc ................ 1.84 06/10/05 198,000,000
235,500,000 Pfizer, Inc. ........................... 2.07 11/04/05 235,500,000
292,600,000 Procter & Gamble ....................... 1.83 10/07/05 292,560,792
140,000,000 Racers Series 2004 MM Trust Corp. ...... 1.94 08/19/05 140,000,000
157,000,000 Sigma Finance Inc. ..................... 1.83 01/20/05 157,000,000
75,000,000 Sigma Finance Inc. ..................... 1.82 02/15/05 74,985,000
65,000,000 Sigma Finance Inc. ..................... 1.82 03/10/05 65,000,000
150,000,000 SLM Corp. .............................. 1.87 11/02/05 150,000,000
35,000,000 Tango Finance Corporation .............. 1.80 03/01/05 34,999,615
See Notes to Financial Statements.
29
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Corporate $ 54,000,000 Tango Finance Corporation .................... 1.82% 03/08/05 $ 53,997,840
Notes -- 106,500,000 Tango Finance Corporation .................... 1.81 03/15/05 106,497,753
Variable Rate 124,000,000 Westpac Banking Corp. ........................ 1.85 10/11/05 123,965,900
(continued) 50,000,000 White Pine Corporation ....................... 1.84 03/29/05 49,989,855
75,000,000 White Pine Corporation ....................... 1.88 03/29/05 74,996,175
82,000,000 White Pine Corporation ....................... 1.83 06/15/05 81,994,670
80,000,000 White Pine Corporation ....................... 1.84 09/15/05 79,992,000
61,000,000 White Pine Corporation ....................... 1.89 09/23/05 60,973,959
- --------------------------------------------------------------------------------------------------------------------------------
Total Corporate Notes --
Variable Rate
(Cost $5,926,140,381) ........................ 5,926,057,006
- --------------------------------------------------------------------------------------------------------------------------------
Extendable 50,000,000 Citibank Credit Card Issuance Trust .......... 1.80 11/03/04 49,995,000
Commercial 130,200,000 Daimler Chrysler Revolving
Notes -- 3.4% Auto Conduit ............................... 1.79 11/05/04 130,174,105
50,000,000 Discover Card Master Trust 1 2000-A .......... 1.80 11/05/04 49,990,000
150,000,000 MBNA Master Credit Card Trust II ............. 1.96 12/01/04 149,755,000
134,199,000 Park Granada LLC ............................. 1.80 11/04/04 134,178,870
207,340,000 Park Granada LLC ............................. 1.80 11/08/04 207,267,431
160,000,000 Park Granada LLC ............................. 1.80 11/10/04 159,928,000
320,000,000 Park Granada LLC ............................. 1.95 11/29/04 319,514,667
65,000,000 Tulip Funding Corp. .......................... 1.82 11/12/04 64,963,853
- --------------------------------------------------------------------------------------------------------------------------------
Total Extendable Commercial Notes
(Cost $1,265,766,926) ........................ 1,265,766,926
- --------------------------------------------------------------------------------------------------------------------------------
Master Notes -- 50,000,000 GE Life and Annuity
Variable Rate -- Assurance Co. (a) .......................... 1.90 11/01/04 50,000,000
5.1% 50,000,000 GE Life and Annuity
Assurance Co. (a) .......................... 1.91 10/03/05 50,000,000
50,000,000 Hartford Life Insurance Co. (a) .............. 1.93 12/01/04 50,000,000
100,000,000 Hartford Life Insurance Co. (a) .............. 1.93 05/02/05 100,000,000
60,000,000 ING USA Annuity & Life
Insurance Co. (a) .......................... 1.92 12/27/04 60,000,000
100,000,000 ING USA Annuity & Life
Insurance Co. (a) .......................... 2.00 01/20/05 100,000,000
See Notes to Financial Statements.
30
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Master Notes --
Variable Rate $ 100,000,000 ING USA Annuity & Life
(continued) Insurance Co. (a) .......................... 1.98% 07/18/05 $ 100,000,000
100,000,000 ING USA Annuity & Life
Insurance Co. (a) .......................... 1.97 08/19/05 100,000,000
360,000,000 JP Morgan Chase & Co. (a) .................... 1.91 11/23/04 360,000,000
40,000,000 Jackson National Life
Insurance Co. (a) .......................... 1.92 05/02/05 40,000,000
210,000,000 Metropolitan Life Insurance
Company (a) ................................ 1.91 09/01/05 210,000,000
60,000,000 Monumental Life Insurance Co. (a) ............ 1.99 05/16/05 60,000,000
90,000,000 Monumental Life Insurance Co. (a) ............ 2.00 11/21/05 90,000,000
150,000,000 New York Life Insurance
Company (a) ................................ 1.94 12/08/04 150,000,000
100,000,000 New York Life Insurance
Company (a) ................................ 1.90 05/27/05 100,000,000
136,000,000 New York Life Insurance
Company (a) ................................ 2.01 10/19/05 136,000,000
35,000,000 Travelers Insurance Company
(The) (a) .................................. 1.90 03/01/05 35,000,000
100,000,000 United of Omaha Life Insurance
Company (a) ................................ 2.06 04/27/05 100,000,000
- -------------------------------------------------------------------------------------------------------------------------------
Total Master Notes -- Variable Rate
(Cost $1,891,000,000) ........................ 1,891,000,000
- -------------------------------------------------------------------------------------------------------------------------------
Commercial 90,000,000 Amsterdam Funding Corp. ...................... 1.81 11/17/04 89,927,600
Paper -- 10.1% 280,000,000 BellSouth Corp. .............................. 1.83 11/17/04 279,772,266
150,000,000 Blue Ridge Asset Funding Corp. ............... 1.81 11/16/04 149,886,875
25,032,000 Bryant Park Funding, LLC ..................... 1.80 11/01/04 25,032,000
95,152,000 Bryant Park Funding, LLC ..................... 1.86 11/19/04 95,063,509
65,102,000 Cancara Asset Securitization ................. 1.78 11/08/04 65,079,467
235,210,000 Cancara Asset Securitization ................. 1.81 11/15/04 235,044,438
51,285,000 Compass Securitization LLC ................... 1.78 11/08/04 51,267,250
145,545,000 Compass Securitization LLC ................... 1.82 11/18/04 145,419,912
60,000,000 Countrywide Home Loan ........................ 1.81 11/08/04 59,978,884
50,000,000 CRC Funding, LLC ............................. 1.80 11/16/04 49,962,500
125,000,000 Fairway Finance Company, LLC ................. 1.80 11/12/04 124,931,250
See Notes to Financial Statements.
31
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Commercial $ 88,000,000 Fairway Finance Company, LLC ................. 1.81% 11/15/04 $ 87,938,058
Paper
(continued)
62,527,000 Fairway Finance Company, LLC ................. 1.81 11/16/04 62,479,844
290,000,000 FCAR Owner Trust ............................. 1.82 11/15/04 289,794,744
100,000,000 FCAR Owner Trust ............................. 1.99 12/02/04 99,828,639
100,000,000 FCAR Owner Trust ............................. 1.99 12/03/04 99,823,111
75,000,000 Galleon Capital, LLC ......................... 1.87 11/19/04 74,929,875
33,000,000 Grampain Funding Limited ..................... 1.78 11/08/04 32,988,578
100,000,000 Greyhawk Funding, LLC ........................ 1.78 11/04/04 99,985,167
100,000,000 Household Finance Corp. ...................... 1.83 11/16/04 99,923,750
95,000,000 Jupiter Securitization Corp. ................. 1.80 11/12/04 94,947,750
59,000,000 Lake Constance Funding Limited ............... 1.81 11/17/04 58,952,538
91,000,000 Lake Constance Funding Limited ............... 1.82 11/17/04 90,926,391
100,000,000 Park Avenue Receivables Corp. ................ 1.78 11/10/04 99,955,500
23,008,000 PB Finance (Delaware) Inc. ................... 1.80 11/05/04 23,003,398
195,000,000 Preferred Receivables Funding Corp. .......... 1.78 11/02/04 194,990,358
105,000,000 Preferred Receivables Funding Corp. .......... 1.80 11/16/04 104,921,250
83,000,000 SBC Communications Inc. ...................... 1.85 11/03/04 82,991,469
48,812,000 Scaldis Capital LLC .......................... 1.81 11/15/04 48,777,642
200,000,000 Sheffield Receivables Corp. .................. 1.80 11/16/04 199,850,000
96,624,000 Solitaire Funding LLC ........................ 1.81 11/12/04 96,570,562
50,000,000 Tulip Funding Corp. .......................... 1.79 11/05/04 49,990,056
84,997,000 Tulip Funding Corp. .......................... 1.79 11/08/04 84,967,416
50,000,000 Tulip Funding Corp. .......................... 1.79 11/12/04 49,972,653
44,200,000 Windmill Funding Corp. ....................... 1.78 11/09/04 44,182,516
130,000,000 Windmill Funding Corp. ....................... 1.80 11/16/04 129,902,500
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost $3,773,959,716) ....................... 3,773,959,716
- --------------------------------------------------------------------------------------------------------------------------------
Commercial 35,000,000 White Pine Corporation ....................... 1.86 11/22/04 34,999,697
Paper -- Variable 33,000,000 White Pine Corporation ....................... 1.89 04/25/05 32,997,831
Rate -- 0.2%
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper --
Variable Rate
(Cost $67,997,528) .......................... 67,997,528
- --------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
32
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Collateralized $ 235,000,000 Blue Heron IX, Class A ....................... 1.96% 02/23/05 $ 235,000,000
Debt Obligation -- 95,000,000 Putman Structured Product 2002-1
Variable Rate -- Class A-1 .................................. 1.96 04/15/05 95,000,000
0.9%
- --------------------------------------------------------------------------------------------------------------------------------
Total Collateralized Debt
Obligation -- Variable Rate
(Cost $330,000,000) ................. ........ 330,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Collateralized 100,000,000 Barclays Capital Inc.,
Advancements -- purchased on 10/29/04 ...................... 1.93 11/01/04 100,000,000
4.0% 400,000,000 Deutsche Bank Securities Inc.,
purchased on 10/29/04 ...................... 1.94 11/01/04 400,000,000
100,000,000 Goldman Sachs & Company,
purchased on 10/29/04 ...................... 1.98 11/01/04 100,000,000
400,000,000 HSBC Securities (USA) Inc.,
purchased on 10/29/04 ...................... 1.95 11/01/04 400,000,000
400,000,000 JP Morgan Securities Inc.,
purchased on 10/29/04 ...................... 2.00 11/01/04 400,000,000
100,000,000 Morgan Stanley & Co. Inc.,
purchased on 10/29/04 ...................... 1.93 11/01/04 100,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Collateralized Advancements
(Cost $1,500,000,000) ........................ 1,500,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Time 500,000,000 Credit Suisse First Boston ................... 1.81 11/01/04 500,000,000
Deposits -- 3.7% 871,744,000 U.S. Bank National Association, Cayman ....... 1.77 11/01/04 871,744,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Time Deposits
(Cost $1,371,744,000) ........................ 1,371,744,000
- --------------------------------------------------------------------------------------------------------------------------------
Repurchase 700,000,000 Deutsche Bank Securities Inc.,
Agreements -- purchased on 10/29/04 ...................... 1.85 11/01/04 700,000,000
7.0% 800,000,000 Goldman Sachs & Company,
purchased on 10/29/04 ...................... 1.85 11/01/04 800,000,000
1,100,000,000 UBS Securities LLC,
purchased on 10/29/04 ...................... 1.85 11/01/04 1,100,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $2,600,000,000) ........................ 2,600,000,000
- --------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
33
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Money Market $1,374,017,500 Merrill Lynch Premier Institutional
Funds -- 3.7% Fund (b)(c) ............................... $ 1,374,017,500
- --------------------------------------------------------------------------------------------------------------------------------
Total Money Market Funds
(Cost $1,374,017,500) ....................... 1,374,017,500
- --------------------------------------------------------------------------------------------------------------------------------
Total Investments -- 105.7%
(Cost $39,523,719,470) ...................... 39,512,407,542
- --------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other
Assets -- (5.7%) ............................ (2,121,321,796)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets .................................. $37,391,085,746
================================================================================================================================
Note -- Costs for federal income tax purposes are the same as those shown
above. At October 31, 2004, net unrealized depreciation amounted to
$11,311,928 and is comprised of $975,788 in appreciation and $12,287,716 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 October 31, 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.
34
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================
(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
GE Life and Annuity Assurance Co.
1.90%, 11/01/04 ..................... 11/03/03 $ 50,000,000
1.91%, 10/03/05 ..................... 09/28/04 $ 50,000,000
Hartford Life Insurance Co.
1.93%, 12/01/04 ..................... 12/01/03 $ 50,000,000
1.93%, 05/02/05 ..................... 05/03/04 $100,000,000
ING USA Annuity and Life Insurance Co.
1.92%, 12/27/04 ..................... 09/24/04 $ 60,000,000
2.00%, 01/20/05 ..................... 01/20/04 $100,000,000
1.98%, 07/18/05 ..................... 06/17/04 $100,000,000
1.97%, 08/19/05 ..................... 07/16/04 $100,000,000
J.P. Morgan Chase & Co.
1.91%, 11/23/04 ..................... 03/01/04 $360,000,000
Jackson National Life Insurance Co.
1.92%, 05/02/05 ..................... 05/03/04 $ 40,000,000
Metropolitan Life Insurance Co.
1.91%, 09/01/05 ..................... 08/30/04 $210,000,000
Monumental Life Insurance Co.
1.99%, 05/16/05 ..................... 05/17/04 $ 60,000,000
2.00%, 11/21/05 ..................... 10/22/04 $ 90,000,000
New York Life Insurance Co.
1.94%, 12/08/04 ..................... 12/04/03 $150,000,000
1.90%, 05/27/05 ..................... 05/28/04 $100,000,000
2.01%, 10/19/05 ..................... 10/20/04 $136,000,000
Travelers Insurance Co. (The)
1.90%, 03/01/05 ..................... 03/01/04 $ 35,000,000
United of Omaha Life Insurance Co.
2.06%, 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 $1,891,000,000 or 5.1% 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 ......... $ -- $ 36,817
Merrill Lynch Premier Institutional Fund ........................ $1,374,017,500 $958,243
(c) Security was purchased with the cash proceeds from securities loans.
See Notes to Financial Statements.
35
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Statement of Assets and Liabilities
October 31, 2004 (Unaudited)
================================================================================
Assets:
Investments in securities subject to repurchase agreements ............... $ 2,600,000,000
Investments in other marketable securities (including securities
loaned of $1,340,000,000) ............................................... 36,912,407,542
---------------
Total investments at value (identified cost $39,523,719,470) (Note 1a) .................. $39,512,407,542
Cash ....................................................................................... 27,737,142
Interest receivable ........................................................................ 62,353,536
Securities lending income receivable ....................................................... 177,835
---------------
Total assets ............................................................................ 39,602,676,055
---------------
Liabilities:
Collateral on securities loaned, at value .................................................. 1,374,017,500
Advisory fee payable (Note 2) .............................................................. 1,955,709
Payable for investments purchased .......................................................... 835,480,000
Accrued expenses ........................................................................... 137,100
---------------
Total liabilities ....................................................................... 2,211,590,309
---------------
Net Assets applicable to investors' interests .............................................. $37,391,085,746
===============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals .................................... $37,402,397,674
Net unrealized depreciation ................................................................ (11,311,928)
---------------
Total ...................................................................................... $37,391,085,746
===============
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Statement of Operations
For the Six Months Ended October 31, 2004 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income:
Interest and discount earned ............................................................... $ 300,430,955
Securities lending income (Note 1f) ........................................................ 995,060
-------------
Total income ............................................................................ 301,426,015
-------------
Expenses:
Investment advisory fee (Note 2) ........................................................... 10,263,309
Accounting and custodian services .......................................................... 388,745
Dividend and transfer agency fees .......................................................... 26,222
-------------
Total expense ........................................................................... 10,678,276
-------------
Net investment income ................................................................... 290,747,739
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ...... ....................... $ 91,558
Net unrealized depreciation of investments .......... ....................... (10,623,929)
-------------
Net realized and unrealized loss from investments ....................................... (10,532,371)
-------------
Net Increase in Net Assets Resulting From Operations ....................................... $ 280,215,368
=============
See Notes to Financial Statements.
36
- ----------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund Six Months Year
Statements of Changes in Net Assets (Unaudited) Ended Ended
October 31, 2004 April 30, 2004
======================================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ................................................... $ 290,747,739 $ 577,476,179
Net realized gain from investment transactions .......................... 91,558 3,079,426
Net unrealized depreciation of investments .............................. (10,623,929) (28,102,314)
----------------- ------------------
Net increase in net assets resulting from operations .................... 280,215,368 552,453,291
----------------- ------------------
Capital Transactions:
Contributions from feeders .............................................. 54,299,085,177 111,504,393,757
Withdrawals from feeders ................................................ (62,916,564,066) (110,924,144,307)
----------------- ------------------
Net increase (decrease) in net assets from capital transactions ......... (8,617,478,889) 580,249,450
----------------- ------------------
Net increase (decrease) in net assets ................................... (8,337,263,521) 1,132,702,741
Net Assets:
Beginning of period ..................................................... 45,728,349,267 44,595,646,526
----------------- ------------------
End of period ........................................................... $ 37,391,085,746 $ 45,728,349,267
================= ==================
- -----------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund Six Months Year Ended April 30, For the Period
Supplementary Data (Unaudited) Ended -------------------- January 14, 2002*
October 31, 2004 2004 2003 to April 30, 2002
======================================================================================================================
Ratio of expenses to average net assets .05%(1) .05% .05% .05%(1)
Ratio of net investment income to
average net assets .................... 1.42%(1) 1.15% 1.70% 1.79%(1)
Net Assets, end of period (000) ........ $37,391,086 $45,728,349 $44,595,647 $46,401,655
(1) On an annualized basis.
* Commencement of Operations.
See Notes to Financial Statements.
37
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
U.S. Government $ 41,000,000 U.S. Treasury Notes ................. 1.63% 10/31/05 $ 40,753,348
& Agency 20,000,000 U.S. Treasury Notes ................. 2.50 09/30/06 19,983,600
Issues -- 5.8% 25,000,000 Fannie Mae .......................... 3.88 03/15/05 25,171,875
25,000,000 Fannie Mae .......................... 7.00 07/15/05 25,812,500
50,000,000 Fannie Mae .......................... 2.11 08/26/05 49,890,625
50,000,000 Fannie Mae .......................... 1.88 09/15/05 49,781,250
50,000,000 Fannie Mae .......................... 2.10 10/21/05 49,859,375
10,145,000 Federal Home Loan Banks ............. 1.50 05/13/05 10,103,786
52,800,000 Federal Home Loan Banks ............. 1.75 08/15/05 52,552,500
50,000,000 Federal Home Loan Banks ............. 1.50 08/26/05 49,656,250
19,000,000 Freddie Mac ......................... 3.25 11/15/04 19,010,761
50,000,000 Freddie Mac ......................... 1.50 05/13/05 49,804,100
25,000,000 Freddie Mac ......................... 2.29 10/28/05 24,966,275
30,000,000 Freddie Mac ......................... 2.30 11/17/05 29,953,125
24,000,000 Freddie Mac ......................... 2.50 11/25/05 23,909,278
30,000,000 Freddie Mac ......................... 2.35 12/09/05 29,958,210
25,000,000 Freddie Mac ......................... 2.50 12/15/05 24,899,250
45,000,000 Freddie Mac ......................... 2.40 07/28/06 44,763,435
- --------------------------------------------------------------------------------------------------------------------------------
Total U.S. Government & Agency
Issues (Cost $622,522,427) .......... 620,829,543
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Government 200,000,000 Fannie Mae .......................... 1.81 03/16/05 199,996,288
Agency Issues -- 150,000,000 Fannie Mae .......................... 1.86 03/23/05 149,988,267
Variable Rate -- 325,000,000 Fannie Mae .......................... 1.79 08/17/05 324,922,731
16.9% 500,000,000 Fannie Mae .......................... 1.84 08/29/05 499,802,982
282,500,000 Fannie Mae .......................... 1.89 10/03/05 282,264,112
40,000,000 Federal Farm Credit Banks ........... 1.77 11/04/04 40,000,000
20,870,000 Federal Farm Credit Banks ........... 1.84 03/24/05 20,866,726
See Notes to Financial Statements.
38
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
U.S. Government $ 25,000,000 Federal Farm Credit Banks ............... 1.75% 05/02/05 $ 24,997,510
Agency Issues -- 50,000,000 Federal Farm Credit Banks ............... 1.78 06/13/05 49,996,936
Variable Rate 33,000,000 Federal Farm Credit Banks ............... 1.78 03/08/06 33,000,000
(continued) 20,000,000 Federal Farm Credit Banks ............... 1.79 02/12/07 19,995,440
50,000,000 Federal Home Loan Banks ................. 1.75 08/02/05 49,994,357
100,000,000 Federal Home Loan Banks ................. 1.74 10/03/05 99,957,232
20,000,000 Freddie Mac ............................. 1.79 02/12/09 19,982,879
- --------------------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Issues -- Variable Rate
(Cost $1,815,831,683) ................... 1,815,765,460
- --------------------------------------------------------------------------------------------------------------------------------
Certificates of 300,000,000 Wells Fargo Bank, N.A. .................. 1.90 11/30/04 299,997,589
Deposit -- 2.8%
- --------------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit
(Cost $299,997,589) ..................... 299,997,589
- --------------------------------------------------------------------------------------------------------------------------------
Euro Certificates 100,000,000 Banco Bilbao Vizcaya,
of Deposit -- Argentania S.A. ....................... 1.80 12/31/04 99,951,580
9.1% 50,000,000 Barclays Bank Plc ....................... 2.15 06/07/05 49,946,070
100,000,000 Calyon .................................. 2.15 06/07/05 99,892,140
150,000,000 Commonwealth Bank of Australia .......... 2.02 04/19/05 149,821,590
40,000,000 Credit Agricole Indosuez, London ........ 1.13 12/30/04 39,999,341
25,000,000 HBOS Treasury Services Plc .............. 2.19 06/09/05 24,978,515
100,000,000 Landesbank Hessen Thuringen
Girozentrale, London .................. 1.87 12/30/04 100,011,372
100,000,000 Norddeutsche Landesbank
Girozentrale .......................... 1.80 12/31/04 99,951,580
69,000,000 Northern Rock Plc ....................... 2.10 06/01/05 68,910,183
125,000,000 Societe Generale ........................ 2.03 04/19/05 124,857,162
125,000,000 Societe Generale ........................ 2.10 06/01/05 124,837,412
- --------------------------------------------------------------------------------------------------------------------------------
Total Euro Certificates of Deposit
(Cost $984,010,712) ..................... 983,156,945
- --------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
39
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Yankee $100,000,000 BNP Paribas, NY ......................... 2.06% 03/31/05 $ 99,919,970
Certificates of 100,000,000 Credit Suisse First Boston, NY .......... 1.82 11/15/04 100,000,000
Deposit -- 7.3% 200,000,000 Credit Suisse First Boston, NY .......... 1.91 11/30/04 200,000,000
150,000,000 Deutsche Bank AG, NY .................... 1.73 12/29/04 150,000,000
60,000,000 Fortis Bank, NY ......................... 2.19 06/09/05 59,948,436
90,000,000 HBOS Treasury Services Plc .............. 2.06 03/31/05 89,927,802
63,750,000 Toronto Dominion Bank, NY ............... 1.12 12/28/04 63,691,096
25,000,000 UBS AG, Stanford ........................ 1.11 12/31/04 24,958,195
- --------------------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of Deposit
(Cost $788,671,605) ..................... 788,445,499
- --------------------------------------------------------------------------------------------------------------------------------
Yankee 200,000,000 BNP Paribas, NY ......................... 1.80 04/26/05 199,980,577
Certificates 100,000,000 Canadian Imperial Bank of
of Deposit -- Commerce, NY .......................... 1.92 11/15/05 100,000,000
Variable Rate -- 160,000,000 Credit Agricole Indosuez, NY ............ 1.80 04/19/05 159,988,932
7.5% 100,000,000 Rabobank Nederland N.V., NY ............. 1.79 05/03/05 99,988,719
200,000,000 Svenska Handelsbanken AB, NY ............ 1.79 04/25/05 199,980,698
50,000,000 SwedBank ................................ 1.86 01/21/05 49,998,324
- --------------------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of
Deposit -- Variable Rate
(Cost $809,937,250) ..................... 809,937,250
- --------------------------------------------------------------------------------------------------------------------------------
Medium Term 20,000,000 CC (USA) Inc., (Centauri) ............... 1.75 03/07/05 19,995,040
Notes -- Variable 25,000,000 CC (USA) Inc., (Centauri) ............... 1.79 03/10/05 24,994,350
Rate -- 3.1% 50,000,000 Dorada Finance Inc. ..................... 1.81 04/26/05 49,998,850
68,000,000 Household Finance Corp. ................. 1.92 10/28/05 67,978,852
62,700,000 Pfizer, Inc. ............................ 1.00 11/04/05 62,700,000
10,000,000 Sigma Finance Inc. ...................... 1.81 03/10/05 9,998,500
100,000,000 Sigma Finance Inc. ...................... 1.84 08/16/05 99,994,900
- --------------------------------------------------------------------------------------------------------------------------------
Total Medium Term Notes --
Variable Rate
(Cost $335,662,861) ..................... 335,660,492
- --------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
40
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Time $349,863,000 U.S. Bank National Association,
Deposits -- 3.2% Cayman ...................................... 1.77% 11/01/04 $ 349,863,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Time Deposits
(Cost $349,863,000) ........................... 349,863,000
- --------------------------------------------------------------------------------------------------------------------------------
Bank Notes --
0.5%
50,000,000 U.S. Bank National Association ................ 2.03 04/29/05 49,929,350
- --------------------------------------------------------------------------------------------------------------------------------
Total Bank Notes
(Cost $50,000,000) ............................ 49,929,350
- --------------------------------------------------------------------------------------------------------------------------------
Bank Notes --
Variable
Rate -- 0.5%
50,000,000 National City Bank, Ohio ...................... 1.86 02/22/05 50,019,758
- --------------------------------------------------------------------------------------------------------------------------------
Total Bank Notes -- Variable Rate
(Cost $50,019,758) ............................ 50,019,758
- --------------------------------------------------------------------------------------------------------------------------------
Corporate Notes -- 50,000,000 Associates Corp. of North America ............. 2.05 06/27/05 50,035,050
Variable Rate -- 100,000,000 General Electric Capital Corp. ................ 1.99 11/17/05 100,099,000
6.2% 122,500,000 Goldman Sachs Group, Inc. ..................... 1.86 11/15/05 122,480,388
28,000,000 Metropolital Life Global Funding I ............ 1.91 11/15/05 27,999,692
52,000,000 Morgan Stanley ................................ 1.84 11/04/05 51,998,284
30,000,000 Morgan Stanley ................................ 1.87 11/15/05 29,996,250
45,500,000 Morgan Stanley ................................ 1.96 11/25/05 45,500,960
31,500,000 Nationwide Building Society ................... 1.96 10/28/05 31,493,546
56,000,000 Northern Rock Plc ............................. 1.87 10/07/05 55,988,637
55,000,000 Permanent Financing PLC ....................... 1.84 06/10/05 55,000,000
77,000,000 Procter & Gamble Company ...................... 1.83 10/07/05 76,989,682
25,000,000 Westpac Capital Corp. ......................... 1.85 10/11/05 24,993,125
- --------------------------------------------------------------------------------------------------------------------------------
Total Corporate Notes -- Variable Rate
(Cost $672,500,000) ........................... 672,574,614
- --------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
41
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Master Notes -- $ 45,000,000 GE Life and Annuity
Variable Rate -- Assurance Co. (a) .......................... 1.89% 10/03/05 $ 45,000,000
3.1% 30,000,000 ING USA Annuity and Life
Insurance Co. (a) ............................ 1.98 07/18/05 30,000,000
100,000,000 ING USA Annuity and Life
Insurance Co. (a) ............................ 1.97 08/19/05 100,000,000
40,000,000 Monumental Life Insurance Co. (a) .............. 1.99 05/16/05 40,000,000
40,000,000 Monumental Life Insurance Co. (a) .............. 2.00 11/21/05 40,000,000
45,000,000 New York Life Insurance
Company (a) .................................. 1.90 05/27/05 45,000,000
35,000,000 New York Life Insurance
Company (a) .................................. 2.01 10/19/05 35,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Master Notes -- Variable Rate
(Cost $335,000,000) ............................ 335,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Commercial 75,000,000 Aspen Funding Corporation ...................... 1.90 11/29/04 74,889,167
Paper -- 19.4% 35,875,000 CC (USA) Inc., (Centauri) ...................... 1.90 11/22/04 35,835,239
125,000,000 Clipper Receivables Company LLC ................ 1.80 11/12/04 124,931,250
80,000,000 Compass Securitization LLC ..................... 1.92 11/30/04 79,876,267
42,231,000 Delaware Funding Corp. ......................... 1.92 12/01/04 42,163,430
200,000,000 Edison Asset Securitization LLC ................ 1.80 11/15/04 199,860,000
18,412,000 Falcon Asset Securitization .................... 1.90 11/22/04 18,391,593
331,500,000 Falcon Asset Securitization .................... 1.90 11/29/04 331,010,117
100,000,000 Greyhawk Funding Corp, LLC ..................... 1.80 11/09/04 99,960,000
90,000,000 Greyhawk Funding Corp, LLC ..................... 1.80 11/12/04 89,950,500
100,000,000 Household Finance Corp. ........................ 1.83 11/16/04 99,923,750
36,737,000 Jupiter Securitization Corp. ................... 1.78 11/10/04 36,720,652
73,097,000 Jupiter Securitization Corp. ................... 1.82 11/15/04 73,045,264
50,000,000 Jupiter Securitization Corp. ................... 1.82 11/17/04 49,959,556
120,000,000 Jupiter Securitization Corp. ................... 1.90 11/29/04 119,822,666
84,811,000 Kitty Hawk Funding Corp. ....................... 1.89 11/29/04 84,686,328
75,000,000 Newport Funding Corp. .......................... 1.90 11/29/04 74,889,167
25,247,000 Park Avenue Receivables Corp. .................. 1.92 12/02/04 25,205,258
200,000,000 Preferred Receivables Funding Corp. ............ 1.90 11/22/04 199,778,333
See Notes to Financial Statements.
42
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================================
Commercial $100,000,000 Sheffield Receivables Corp. ............. 1.80% 11/15/04 $ 99,930,000
Paper 105,000,000 Variable Funding Capital Corp. .......... 1.80 11/16/04 104,921,250
(continued) 25,000,000 Windmill Funding Corp. .................. 1.89 11/22/04 24,972,437
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost $2,090,722,224) ................... 2,090,722,224
- --------------------------------------------------------------------------------------------------------------------------------
Commercial 50,000,000 White Pine Corporation .................. 1.86 11/22/04 49,999,567
Paper -- Variable
Rate -- 0.5%
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper --
Variable Rate
(Cost $49,999,567) ...................... 49,999,567
- --------------------------------------------------------------------------------------------------------------------------------
Collateralized 51,000,000 Blue Heron IX, Class A .................. 1.96 02/23/05 51,000,000
Debt Obligation -- 24,000,000 Putman Structured Product 2002-1
Variable Class A-1 ............................. 1.96 04/15/05 24,000,000
Rate -- 0.7%
- --------------------------------------------------------------------------------------------------------------------------------
Total Collateralized Debt
Obligation -- Variable Rate
(Cost $75,000,000) ...................... 75,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Collateralized 100,000,000 Barclays Capital Inc.,
Advancements -- purchased on 10/29/04 ................. 1.93 11/01/04 100,000,000
4.4% 175,000,000 Citigroup Global Markets Inc.,
purchased on 10/29/04 ................. 1.98 11/01/04 175,000,000
100,000,000 Goldman Sachs & Company,
purchased on 10/29/04 ................. 1.91 11/01/04 100,000,000
100,000,000 Goldman Sachs & Company,
purchased on 10/29/04 ................. 1.98 11/01/04 100,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Collateralized Advancements
(Cost $475,000,000) ..................... 475,000,000
- --------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
43
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
=================================================================================================================================
Repurchase $400,000,000 Deutsche Bank Securities Inc.,
Agreements -- purchased on 10/29/04 ........... 1.85% 11/01/04 $ 400,000,000
9.3% 200,000,000 Goldman Sachs & Company,
purchased on 10/29/04 ........... 1.85 11/01/04 200,000,000
400,000,000 UBS Securities LLC,
purchased on 10/29/04 ........... 1.85 11/01/04 400,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $1,000,000,000) ............. 1,000,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Total Investments -- 100.3%
(Cost $10,804,738,676) ............ 10,801,901,291
- ---------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other
Assets -- (0.3%) .................. (34,942,884)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets ........................ $10,766,958,407
=================================================================================================================================
Note -- Costs for federal income tax purposes are the same as those shown
above. At October 31, 2004, net unrealized depreciation amounted to
$2,837,385 and is comprised of $158,787 in appreciation and $2,996,172 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 October 31, 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
GE Life and Annuity Assurance Co.
1.89%, 10/03/05 ..................... 09/28/04 $ 45,000,000
ING USA Annuity and Life Insurance Co.
1.98%, 07/18/05 ..................... 06/17/04 $ 30,000,000
1.97%, 08/19/05 ..................... 07/16/04 $100,000,000
Monumental Life Insurance Co.
1.99%, 05/16/05 ..................... 05/17/04 $ 40,000,000
2.00%, 11/21/05 ..................... 10/22/04 $ 40,000,000
New York Life Insurance Co.
1.90%, 05/27/05 ..................... 05/28/04 $ 45,000,000
2.01%, 10/19/05 ..................... 10/20/04 $ 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 $335,000,000 or 3.1% of net
assets.
See Notes to Financial Statements.
44
- --------------------------------------------------------------------------------
Master Institutional Fund
Statement of Assets and Liabilities
October 31, 2004 (Unaudited)
================================================================================
Assets:
Investments in securities subject to repurchase agreements ................ $1,000,000,000
Investments in other marketable securities ................................ 9,801,901,291
--------------
Total investments, at value (identified cost $10,804,738,676) (Note 1a) .................. $10,801,901,291
Cash ........................................................................................ 10,573,739
Interest receivable ......................................................................... 17,789,444
---------------
Total assets ............................................................................. 10,830,264,474
---------------
Liabilities:
Advisory fee payable (Note 2) ............................................................... 559,704
Payable for investments purchased ........................................................... 62,700,000
Accrued expenses ............................................................................ 46,363
---------------
Total liabilities ........................................................................ 63,306,067
---------------
Net Assets applicable to investors' interests ............................................... $10,766,958,407
===============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals ..................................... $10,769,795,792
Net unrealized depreciation ................................................................. (2,837,385)
---------------
Total ....................................................................................... $10,766,958,407
===============
- --------------------------------------------------------------------------------
Master Institutional Fund
Statement of Operations
For the Six Months Ended October 31, 2004 (Unaudited)
================================================================================
Investment Income:
Interest and discount earned ................................................................ $ 80,315,892
------------
Expenses:
Investment advisory fee (Note 2) ............................................................ 2,716,596
Accounting and custodian services ........................................................... 110,196
Dividend and transfer agency fees ........................................................... 26,222
------------
Total expense ............................................................................ 2,853,014
------------
Net investment income .................................................................... 77,462,878
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ............................ $ 53,403
Net unrealized depreciation of investments ................................ (3,060,787)
------------
Net realized and unrealized loss from investments ........................................ (3,007,384)
------------
Net Increase in Net Assets Resulting From Operations ........................................ $ 74,455,494
============
See Notes to Financial Statements.
45
- -------------------------------------------------------------------------------------------------------------------
Six Months Year
Master Institutional Fund Ended Ended
Statements of Changes in Net Assets (Unaudited) October 31, 2004 April 30, 2004
===================================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ................................................... $ 77,462,878 $ 137,798,021
Net realized gain from investment transactions .......................... 53,403 580,917
Net unrealized depreciation of investments .............................. (3,060,787) (5,844,767)
--------------- ----------------
Net increase in net assets resulting from operations .................... 74,455,494 132,534,171
Capital Transactions:
Contributions from feeders .............................................. 7,733,253,159 19,475,397,343
Withdrawals from feeders ................................................ (7,643,924,135) (20,666,984,788)
--------------- ----------------
Net increase (decrease) in net assets from capital transactions ......... 89,329,024 (1,191,587,445)
--------------- ----------------
Net increase (decrease) in net assets ................................... 163,784,518 (1,059,053,274)
Net Assets:
Beginning of period ..................................................... 10,603,173,889 11,662,227,163
--------------- ----------------
End of period ........................................................... $10,766,958,407 $ 10,603,173,889
=============== ================
- -------------------------------------------------------------------------------------------------------------------
Master Institutional Fund Six Months Year Ended April 30, For the Period
Supplementary Data (Unaudited) Ended ---------------------- January 14, 2002*
October 31, 2004 2004 2003 to April 30, 2002
=====================================================================================================================
Ratio of expenses to average net assets .05%(1) .05% .05% .05%(1)
Ratio of net investment income to
average net assets .................... 1.43%(1) 1.14% 1.71% 1.81%(1)
Net Assets, end of period (000) ........ $10,766,958 $10,603,174 $11,662,227 $12,840,286
(1) On an annualized basis.
* Commencement of Operations.
See Notes to Financial Statements.
46
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Alabama -- $ 7,500,000 Athens-Limestone County Health Care Authority
3.0% VRDN 1.81% due 05/01/2015 (a) ..................................... $ 7,500,000
2,995,000 Birmingham, Alabama Waterworks & Sewer Board
(Water & Sewer Revenue Floater -- Series 947)
VRDN 1.80% due 01/01/2033 (a) ...................................... 2,995,000
30,000,000 Columbia, Alabama IDB Revenue (Alabama Power Co.)
VRDN 1.79% due 11/01/2021 (a) ...................................... 30,000,000
1,255,000 Daphne, Alabama Special Care Facilities Authority
Revenue (Floaters -- Series 593) VRDN 1.84%
due 08/15/2028 (a)(b) .............................................. 1,255,000
35,000,000 Decatur, Alabama IDB Revenue VRDN 1.85%
due 08/01/2036 (a) ................................................. 35,000,000
Jefferson County, Alabama Sewer Revenue Warrants
VRDN:
69,500,000 (Series B-7) 1.76% due 02/01/2042 (a) .............................. 69,500,000
30,000,000 (Series C-3) 1.80% due 02/01/2040 (a) .............................. 30,000,000
20,000,000 (Series C-4) 1.80% due 02/01/2040 (a) .............................. 20,000,000
67,600,000 (Series C-6) 1.75% due 02/01/2040 (a) .............................. 67,600,000
2,515,000 Tuscaloosa, Alabama Educational Building Authority
Revenue (American Christian Education)
VRDN 1.91% due 01/01/2023 (a) ...................................... 2,515,000
6,700,000 Tuscaloosa County, Alabama IDA Solid Waste Disposal
Revenue VRDN 1.85% due 09/01/2020 (a) .............................. 6,700,000
University of Alabama General Revenue VRDN:
4,800,000 (Putters -- Series 477) 1.80% due 07/01/2012 (a)(b) .................. 4,800,000
16,000,000 (Series C) 1.76% due 07/01/2034 (a) .................................. 16,000,000
60,490,000 West Jefferson, Alabama IDB PCR (Power Co. Project)
DDN 1.74% due 06/01/2028 (a) ....................................... 60,490,000
- ---------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
47
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Alaska -- $ 5,000,000 Anchorage, Alaska (ROCS RR II R 6034)
1.3% VRDN 1.81% due 12/01/2024 (a) ........................................ $ 5,000,000
Valdez, Alaska Marine Revenue (BP Pipelines Project)
VRDN:
28,275,000 (Series A) 1.74% due 06/01/2037 (a) .................................. 28,275,000
75,820,000 (Series B) 1.74% due 07/01/2037 (a) .................................. 75,820,000
Valdez, Alaska Marine Term Revenue (Philips Project)
FXRDN:
26,000,000 (Series A) 1.80% due 06/01/2005 ...................................... 26,000,000
18,375,000 (Series B) 1.80% due 06/01/2005 ...................................... 18,375,000
- ---------------------------------------------------------------------------------------------------------------------------------
Arizona -- 23,000,000 Maricopa County, Arizona IDA Health Facilities
1.3% Revenue (Putters -- Series 420) VRDN 1.82% ...........................
due 01/01/2010 (a)(b) ................................................ 23,000,000
Maricopa County, Arizona IDA S/F Mortgage Revenue
FXRDN:
23,405,452 (Series A) 1.88% due 09/01/2005 ...................................... 23,405,452
29,817,201 (Series B) 1.88% due 09/01/2005 ...................................... 29,817,201
13,620,000 (Series R-2) 1.89% due 12/01/2004 .................................... 13,620,000
67,631,028 Phoenix, Arizona IDA S/F Housing Notes (Series A)
FXRDN 1.85% due 07/01/2005 ........................................... 67,631,028
- ---------------------------------------------------------------------------------------------------------------------------------
Arkansas -- 7,000,000 Arkansas State Development Finance Authority
1.4% Environmental Facilities Revenue (Teris LLC Project)
VRDN 1.86% 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 1.91% due 05/01/2031 (a) ........................................ 3,750,000
101,923,337 Arkansas State Development Finance Authority S/F
Housing Revenue FXRDN 1.88% due 09/01/2005 ........................... 101,923,337
31,070,000 Arkansas State Development Finance Authority S/F
Housing Revenue Floater Certificates (Series 708)
VRDN 1.89% due 02/01/2008 (a)(b) ..................................... 31,070,000
10,000,000 North Little Rock, Arkansas Health Facilities Board
Revenue (Baptist Health -- Series B) VRDN 1.79%
due 12/01/2021 (a) ................................................... 10,000,000
See Notes to Financial Statements.
48
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Arkansas $ 6,650,000 Pulaski County, Arkansas Public Facilities Board M/F
(continued) Revenue (Chapel Ridge -- South West) VRDN 1.88%
due 10/01/2034 (a) ................................................... $ 6,650,000
- ---------------------------------------------------------------------------------------------------------------------------------
California -- 9,810,000 California State (Merlots B-45) VRDN 1.83%
2.6% due 10/01/2029 (a)(b) ................................................ 9,810,000
200,000,000 California State (Series A) RAN 3.00% due 06/30/2005 ................... 201,649,993
33,800,000 California State Municipal Securities Trust Certificates
(SGA 119) DDN 1.75% due 09/01/2028 (a)(b) ............................ 33,800,000
12,100,000 California State Municipal Securities Trust Certificates
(SGA 136) DDN 1.75% due 12/01/2030 (a)(b) ............................ 12,100,000
14,800,000 California Statewide Community Development Authority
Revenue (Series K) CP 1.65% due 11/09/2004 ........................... 14,800,000
12,500,000 California Statewide Community Development Authority
Revenue (Floaters -- Series 909) VRDN 1.78%
due 08/15/2023 (a)(b) ................................................ 12,500,000
24,500,000 Los Angeles, California S/F Home Mortgage Revenue
FXRDN 1.84% due 10/01/2005 ........................................... 24,500,000
- ---------------------------------------------------------------------------------------------------------------------------------
Colorado -- 4,000,000 Arvada, Colorado Utility IPMS Water Enterprise
1.9% Revenue (Dexia Public Finance) VRDN 1.70%
due 11/01/2020 (a) .................................................. 4,000,000
5,935,000 Castle Pines North Metropolitan District VRDN 1.84%
due 12/01/2028 (a) ................................................... 5,935,000
7,380,000 Colorado Department of Transportation Revenue
(Putters -- Series 318) VRDN 1.80% due
06/15/2015 (a)(b) .................................................... 7,380,000
15,000,000 Colorado Educational & Cultural Facilities Authority
Revenue (Student Housing -- Fuller Project)
VRDN 1.84% due 08/01/2035 (a) ........................................ 15,000,000
6,700,000 Colorado Educational & Cultural Facilities Authority
Revenue (Christian University Project) VRDN 1.84%
due 07/01/2034 (a) ................................................... 6,700,000
18,520,000 Colorado Health Facilities Authority Revenue (Catholic
Health -- Series B) VRDN 1.79% due 03/01/2032 (a) .................... 18,520,000
18,745,000 Colorado Student Educational Loan Program (Floater --
Series L49J) VRDN 1.80% due 08/09/2005 (a)(b) ........................ 18,745,000
See Notes to Financial Statements.
49
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Colorado $ 5,595,000 Denver, Colorado City & County Airport Revenue
(continued) (Merlots -- Series A-61) VRDN 1.89%
due 11/15/2012 (a)(b) ................................................. $ 5,595,000
13,000,000 Denver, Colorado City & County Airport Revenue
(Series B) VRDN 1.88% due 11/15/2024 (a) .............................. 13,000,000
2,365,000 Denver, Colorado City & County Housing Revenue
(Circle Village Project) VRDN 1.80%
due 10/01/2029 (a) .................................................... 2,365,000
15,563,700 Denver, Colorado City & County S/F Mortgage Revenue
(Series A) FXRDN 1.91% due 10/25/2005 ................................. 15,563,700
9,195,000 El Paso County, Colorado Certificates Partnership
(ROCS RR ll-R 1050) VRDN 1.70%
due 12/01/2020 (a)(b) ................................................. 9,195,000
7,990,000 El Paso County, Colorado Certificates Partnership
(ROCS RR ll-R 2002) VRDN 1.70%
due 12/01/2019 (a)(b) ................................................. 7,990,000
5,832,000 El Paso County, Colorado S/F Mortgage Revenue
(Series A) FXRDN 1.81% due 05/25/2005 ................................. 5,832,000
5,300,000 Goldsmith Metropolitan District Colorado VRDN
1.96% due 12/01/2034 (a) .............................................. 5,300,000
41,000,000 Lower Colorado, River Authority Revenue (Series A) CP
1.70% due 11/08/2004 .................................................. 41,000,000
12,900,000 Moffat County, Colorado PCR (Pacificorp Projects)
DDN 1.75% due 05/01/2013 (a) .......................................... 12,900,000
6,875,000 Regional Transportation District Sales Tax Revenue
(Series 679) VRDN 1.80% due 05/01/2010 (a)(b) ......................... 6,875,000
5,170,000 Thornton, Colorado Water Enterprise Revenue (ROCS
RR II R 301) VRDN 1.81% due 12/01/2034 (a)(b) ......................... 5,170,000
16,240,000 Traer Creek, Colorado Metropolitan District Revenue
VRDN 1.79% due 10/01/2021 (a) ......................................... 16,240,000
- ---------------------------------------------------------------------------------------------------------------------------------
Delaware -- 4,795,000 Delaware State (ROCS RR II R 4045) VRDN 1.81%
0.0% due 07/01/2012 (a) ................................................... 4,795,000
- ---------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
50
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
District of $ 5,400,000 District of Columbia (Merlots -- Series B-13)
Columbia -- VRDN 1.84% due 06/01/2022 (a)(b) ..................................... $ 5,400,000
0.7% 54,840,000 District of Columbia Housing Finance Agency Mortgage
Revenue S/F FXRDN 1.94% due 12/24/2004 ............................... 54,840,000
4,510,000 District of Columbia Revenue (Washington Very SPL
Arts) VRDN 1.89% due 01/01/2027 (a) .................................. 4,510,000
20,095,000 Washington D.C. Convention Center Authority
Dedicated Tax Revenue (Floater Certificates --
Series 539) VRDN 1.80% due 10/01/2021 (a)(b) ......................... 20,095,000
- ---------------------------------------------------------------------------------------------------------------------------------
Florida -- 5,000,000 Brevard County, Florida Health Facilities Authority
3.9% Revenue (Wuesthoff Health System Project)
VRDN 1.77% due 01/01/2034 (a) ........................................ 5,000,000
25,040,000 Broward County, Florida Health Facilities Authority
Revenue (John Knox VLG Florida Project)
DDN 1.83% due 09/01/2032 (a) ......................................... 25,040,000
10,500,000 Capital Projects Finance Authority (Glenridge on Palmer
Ranch -- Series C) DDN 1.74% due 06/01/2012 (a) ...................... 10,500,000
39,210,000 Capital Trust Agency, Florida M/F Housing Revenue Bond
(Series 99-B) VRDN 1.79% due 12/01/2032 (a) .......................... 39,210,000
6,400,000 Dade County, Florida IDA Facilities Revenue
(Florida Power & Light Co.) VRDN 1.75%
due 06/01/2021 (a) ................................................... 6,400,000
25,395,000 Escambia County, Florida Health Facilities Authority
Revenue (Azalea Trace Inc. -- Series B) DDN 1.76%
due 11/15/2029 (a) ................................................... 25,395,000
Florida State Board of Education VRDN:
6,000,000 1.81% due 06/01/2032 (a) ............................................. 6,000,000
4,900,000 1.81% due 06/01/2018 (a) ............................................. 4,900,000
7,485,000 Florida State Board of Education (Putters -- Series 473)
VRDN 1.80% due 06/01/2011 (a)(b) ..................................... 7,485,000
2,920,000 FSU Final Assistance Inc., Florida Educational Athletic
Facilities Revenue (MSTR SGB 44-A) VRDN 1.81%
due 10/01/2031 (a)(b) ................................................ 2,920,000
11,870,000 Gainesville, Florida Utilities Systems (Series C) CP
1.76% due 11/08/2004 ................................................. 11,870,000
See Notes to Financial Statements.
51
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Florida $ 29,215,000 Gulf Breeze, Florida Revenue (Local Government Loan
(continued) Project -- Series C) VRDN 1.75% due 12/01/2015 (a) ................... $ 29,215,000
5,000,000 Highland County, Florida Health Facilities Authority
Revenue (Adventist Health -- System C)
VRDN 1.85% due 11/15/2021 (a) ........................................ 5,000,000
10,000,000 Jacksonville, Florida PCR (Florida Power & Light Co.
Project ) DDN 1.79% due 05/01/2029 (a) ............................... 10,000,000
4,600,000 Jacksonville, Florida Sales Tax Revenue (Merlot B-26)
VRDN 1.84% due 10/01/2027 (a)(b) ..................................... 4,600,000
17,000,000 Jacksonville, Florida Electric Authority (Series 00A)
CP 1.70% due 11/15/2004 .............................................. 17,000,000
45,600,000 Lakeland, Florida Energy System Revenue (Series A)
VRDN 1.76% due 10/01/2035 (a) ........................................ 45,600,000
Lee County, Florida Hospital Board Directors Revenue
(Memorial Health System) DDN:
14,600,000 (Series A) 1.76% due 04/01/2025 (a) .................................. 14,600,000
52,205,000 (Series B) 1.76% due 04/01/2027 (a) .................................. 52,205,000
7,565,000 Lee County, Florida Capital Revenue (Floaters --
Series 957) VRDN 1.80% due 10/01/2017 (a)(b) ......................... 7,565,000
15,000,000 Miami Dade County, Florida IDA Solid Waste Disposal
Revenue (Power & Light Company Project)
DDN 1.75% due 12/01/2023 (a) ......................................... 15,000,000
3,100,000 Miami Dade County, Florida School Board Certificates
Partnership (Putters -- Series 534) VRDN 1.80%
due 08/01/2011 (a)(b) ................................................ 3,100,000
30,590,000 Orange County, Florida Health Facilities Authority
Revenue Floater Certificates (Series 531)
VRDN 1.81% due 11/15/2021 (a)(b) ..................................... 30,590,000
16,500,000 Orange County, Florida Health Facilities Authority
Revenue Floater Certificates (Series 830)
VRDN 1.80% due 11/15/2022 (a)(b) ..................................... 16,500,000
3,765,000 Palm Beach County, Florida School Board Certificates
Partnership (ROCS RR II R 2105) VRDN 1.81%
due 08/01/2015 (a)(b) ................................................ 3,765,000
6,600,000 Polk County, Florida IDA IDR (Lifepath Hospice
Project) VRDN 1.77% due 08/01/2028 (a) ............................... 6,600,000
See Notes to Financial Statements.
52
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Florida $ 42,655,000 Saint Lucie County, Florida PCR (Florida Power & Light
(continued) Company Project) DDN 1.75% due 09/01/2028 (a) ........................ $ 42,655,000
3,500,000 West Palm Beach Florida Utilities Systems Revenue
(Floaters -- Series 972) VRDN 1.80% due
10/01/2034 (a)(b) .................................................... 3,500,000
- ---------------------------------------------------------------------------------------------------------------------------------
Georgia -- 4,820,000 Albany -- Dougherty County, Georgia Hospital Authority
2.5% Revenue VRDN 1.80% due 09/01/2020 (a) ................................ 4,820,000
17,805,000 Atlanta, Georgia Urban Residential Finance Authority
FXRDN 1.89% due 12/01/2004 ........................................... 17,805,000
7,000,000 Atlanta, Georgia Urban Residential Finance Authority
FXRDN 1.86% due 12/01/2004 ........................................... 7,000,000
13,915,000 Atlanta, Georgia Water & Wastewater Revenue
(Series 745-D) VRDN 1.80% due 11/01/2017 (a)(b) ...................... 13,915,000
3,000,000 Atlanta, Georgia Water & Wastewater Revenue
VRDN 1.82% due 11/01/2033 (a) ........................................ 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
10,000,000 Clayton County, Georgia Development Authority
Facilities Revenue (Delta Airlines -- Series C)
VRDN 1.84% due 05/01/2035 (a) ........................................ 10,000,000
7,550,000 Cobb County, Georgia Housing M/F Housing Revenue
(Walton Reserve Apartments Project) VRDN 1.83%
due 10/01/2035 (a) ................................................... 7,550,000
10,650,000 Coloquitt County, Georgia Hospital Authority Revenue
VRDN 1.84% due 03/01/2023 (a) ........................................ 10,650,000
17,640,000 Crisp County, Georgia Solid Waste Management Authority
Revenue VRDN 2.23% due 01/01/2023 (a) ................................ 17,640,000
30,000,000 Dekalb County, Georgia School District TAN 2.00%
due 12/31/2004 ....................................................... 30,203,724
19,145,000 Eagle Tax-Exempt Trust -- State of Georgia
(Series 981002) VRDN 1.81% due 07/01/2014 (a)(b) ..................... 19,145,000
22,955,000 Eagle Tax-Exempt Trust -- State of Georgia
(Series 991001) VRDN 1.81% due 11/01/2017 (a)(b) ..................... 22,955,000
See Notes to Financial Statements.
53
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Georgia $ 3,015,000 Fulton County, Georgia Hospital Authority
(continued) Revenue (ROCS RR II R 2127) VRDN 1.81%
due 01/01/2019 (a)(b) ................................................ $ 3,015,000
Gainesville & Hall County, Georgia Development
Authority Revenue (Senior Living Facilities --
Lanier) DDN:
10,750,000 (Series A) 1.75% due 11/15/2010 (a) .................................. 10,750,000
4,150,000 (Series C) 1.75% due 11/15/2030 (a) .................................. 4,150,000
3,505,000 Gainesville & Hall County, Georgia Development
Authority Revenue (Atex Inc. Project) VRDN 1.91%
due 09/01/2023 (a) ................................................... 3,505,000
6,485,000 Georgia State (Putters -- Series 440) VRDN 1.78%
due 05/01/2010 (a)(b) ................................................ 6,485,000
Georgia State Local Government Certificate Partnership
(Macon Trust Series 2002-0) VRDN:
4,515,000 1.84% due 12/01/2022 (a) ............................................. 4,515,000
4,515,000 1.84% due 06/01/2028 (a) ............................................. 4,515,000
8,340,000 Georgia Municipal Gas Authority (Gas Revenue Agency
Project -- Series C) VRDN 1.77% due 11/01/2007 (a) ................... 8,340,000
3,680,000 Gwinnett County, Georgia Development Authority
Revenue (Barcoview LLC Project) VRDN 1.96%
due 07/01/2018 (a) ................................................... 3,680,000
3,995,000 Gwinnett County, Georgia Development Authority
Revenue Certificates of Partnerships (ROCS RR II R
6009) VRDN 1.81% due 01/01/2021 (a)(b) ............................... 3,995,000
11,730,000 La Grange, Georgia Development Authority Revenue
(La Grange College Project) VRDN 1.81%
due 06/01/2031 (a) ................................................... 11,730,000
10,530,000 Metropolitan Atlanta Rapid Transit Authority Sales
Tax Revenue (Putters -- Series 312) VRDN 1.78%
due 07/01/2021 (a)(b) ................................................ 10,530,000
3,225,000 Metropolitan Atlanta Rapid Transit Authority Sales
Tax Revenue (ROCS RR II R 4011) VRDN 1.81%
due 07/01/2019 (a)(b) ................................................ 3,225,000
See Notes to Financial Statements.
54
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Georgia $ 9,625,000 Private Colleges & Universities Authority Revenue
(continued) (Mercer University Project) VRDN 1.84%
due 10/01/2032 (a) ................................................... $ 9,625,000
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
1,995,000 Thomaston-Upson County, Georgia IDA Revenue
(Thomaston Manufacturing Project) VRDN 1.96%
due 12/01/2011 (a) ................................................... 1,995,000
15,000,000 Ware County, Georgia Hospital Authority
Revenue (Baptist Village Project) VRDN 1.77%
due 11/01/2020 (a) ................................................... 15,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Hawaii -- 2,660,000 Honolulu, Hawaii City & County (ROCS RR II R 5025)
0.0% VRDN 1.81% due 07/01/2014 (a)(b) ..................................... 2,660,000
- ---------------------------------------------------------------------------------------------------------------------------------
Idaho -- 4,250,000 Idaho Housing & Finance Association Nonprofit
0.1% Facilities Revenue (Albertson College Project)
VRDN 1.79% due 11/01/2021 (a) ........................................ 4,250,000
10,400,000 Idaho Housing & Finance Association S/F Mortgage
(Series F) VRDN 1.80% due 01/01/2033 (a) ............................. 10,400,000
1,360,000 Madison, Idaho Economic Development Corp. IDR
(Floyd Wilcox & Sons, Inc. Project) VRDN 1.91%
due 08/01/2012 (a) ................................................... 1,360,000
- ---------------------------------------------------------------------------------------------------------------------------------
Illinois -- 2,170,000 Aurora, Illinois IDR (Aztech Engineering Inc. Project)
6.1% VRDN 1.95% due 10/01/2018 (a) ........................................ 2,170,000
23,230,335 Aurora, Illinois Kane-Dupage County S/F Mortgage
Revenue (Floaters -- Series A) VRDN 1.89%
due 04/01/2005 (a)(b) ................................................ 23,230,335
26,000,000 Aurora, Illinois Kane-Dupage County S/F Mortgage
Revenue (Floaters -- Series 789) VRDN 1.88%
due 04/03/2006 (a)(b) ................................................ 26,000,000
4,250,000 Chicago, Illinois Board of Education (Putters --
Series 472) VRDN 1.83% due 06/01/2014 (a)(b) ......................... 4,250,000
4,800,000 Chicago, Illinois Eagle 2003-0006 VRDN 1.81%
due 01/01/2042 (a) ................................................... 4,800,000
See Notes to Financial Statements.
55
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Illinois $ 2,500,000 Chicago, Illinois O'Hare International Airport
(continued) Revenue (ROCS RR II R 239) VRDN 1.85%
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 1.85%
due 03/01/2037 (a) .................................................... 8,000,000
7,080,000 Chicago, Illinois Park District (Merlots -- Series A-61)
VRDN 1.84% due 01/01/2021 (a)(b) ...................................... 7,080,000
11,460,000 Chicago, Illinois Park District (Putters -- Series 521)
VRDN 1.80% due 07/01/2012 (a)(b) ...................................... 11,460,000
2,975,000 Chicago, Illinois Public Building Revenue VRDN 1.81%
due 12/01/2014 (a) .................................................... 2,975,000
4,600,000 Chicago, Illinois Solid Waste Disposal Facilities Revenue
(Groot Industries Inc. Project) VRDN 1.92% due
12/01/2015 (a) ........................................................ 4,600,000
10,075,000 Chicago, Illinois Wastewater Transmission
Revenue (Merlots -- Series A-125) VRDN 1.84%
due 01/01/2030 (a)(b) ................................................. 10,075,000
16,000,000 Chicago, Illinois Wastewater Transmission Revenue
(Series A) VRDN 1.76% due 01/01/2039 (a) .............................. 16,000,000
Cook County, Illinois VRDN:
3,590,000 (Merlots -- Series B-11) 1.84% due 11/15/2025 (a)(b) .................... 3,590,000
2,400,000 (Putters -- Series 559) 1.80% due 05/15/2012 (a)(b) ..................... 2,400,000
2,275,000 Des Plaines, Illinois IDR (414 East Golf Road Project)
VRDN 1.93% due 05/01/2017 (a) ......................................... 2,275,000
11,150,000 Eagle Tax-Exempt Trust -- Metropolitan Pier & Exposition
II (Series 02-6001) VRDN 1.81% due 06/15/2042 (a)(b) .................. 11,150,000
10,840,000 Eagle Tax-Exempt Trust (Series 02-6002) VRDN 1.81%
due 04/01/2022 (a)(b) ................................................. 10,840,000
2,795,000 Elgin, Illinois IDR (Starro Precision Products Inc.
Project) VRDN 1.92% due 06/01/2025 (a) ................................ 2,795,000
35,000 Geneva, Illinois IDR (Continental Envelope Corp.
Project) VRDN 1.92% due 09/01/2006 (a) ................................ 35,000
12,400,000 Illinois Health Facilities Authority Revenue CP 1.68%
due 11/01/2004 ........................................................ 12,400,000
See Notes to Financial Statements.
56
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Illinois $ 19,400,000 Illinois Education Facilities Authority Revenue (Art Institute
(continued) of Chicago) VRDN 1.77% due 03/01/2027 (a) ........................ $ 19,400,000
13,800,000 Illinois Education Facilities Authority Revenue
(Concordia University River Project) DDN 1.75%
due 10/01/2031 (a) ............................................... 13,800,000
9,800,000 Illinois Education Facilities Authority Revenue
(ITT State Street Corp -- Series A) VRDN 1.79%
due 06/01/2033 (a) ............................................... 9,800,000
Illinois Health Facilities Authority Revenue
(Central Dupage Health) DDN:
46,900,000 (Series B) 1.75% due 11/01/2027 (a) ................................ 46,900,000
50,000,000 (Series C) 1.75% due 11/01/2027 (a) ................................ 50,000,000
32,200,000 Illinois Health Facilities Authority Revenue (Northwest
Community Hospital -- Series B) DDN 1.76%
due 07/01/2032 (a) ............................................... 32,200,000
1,180,000 Illinois Health Facilities Authority Revenue (Chestnut
Square Glen Project -- Series C) VRDN 1.77%
due 08/15/2032 (a) ............................................... 1,180,000
16,900,000 Illinois Health Facilities Authority Revenue (Memorial
Health System) DDN 1.79% due 10/01/2022 (a) ...................... 16,900,000
12,275,000 Illinois Health Facilities Authority Revenue (Palos
Community Hospital -- Series B) VRDN 1.79%
due 12/01/2015 (a) ............................................... 12,275,000
39,820,000 Illinois Health Facilities Authority Revenue (Resurrection
Health -- Series A) DDN 1.75% due 05/15/2029 (a) ................. 39,820,000
40,695,000 Illinois Health Facilities Authority Revenue (Univerity
Chicago Hospital) DDN 1.74% due 08/01/2026 (a) ................... 40,695,000
22,835,000 Illinois Housing Development Authority Revenue
FXRDN 0.99% due 04/01/2005 ....................................... 22,835,000
Illinois Finance Authority Revenue (Central Dupage
Health) VRDN:
12,500,000 (Series B) 1.77% due 11/01/2038 (a) .............................. 12,500,000
13,000,000 (Series C) 1.77% due 11/01/2038 (a) .............................. 13,000,000
2,760,000 Illinois State Development Finance Authority IDR
(Design Automotive LLC Project) VRDN 1.92%
due 06/01/2011 (a) ............................................... 2,760,000
See Notes to Financial Statements.
57
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Illinois $ 2,450,000 Illinois State Development Finance Authority IDR
(continued) (Rockford College Project) VRDN 1.87%
due 02/01/2021 (a) ................................................. $ 2,450,000
1,400,000 Illinois State Development Finance Authority
(AMR Pooled -- Series B-2) VRDN 2.16%
due 10/01/2029 (a) ................................................. 1,400,000
10,000,000 Illinois State Development Finance Authority
(Palos Community Hospital) VRDN 1.79%
due 09/01/2015 (a) ................................................. 10,000,000
28,900,000 Illinois State Municipal Securities Trust Receipts
(SGA 103) VRDN 1.75% due 08/01/2024 (a)(b) ......................... 28,900,000
4,315,000 Illinois State (Merlots -- Series A-124) VRDN 1.84%
due 11/01/2026 (a)(b) .............................................. 4,315,000
4,990,000 Illinois State (Merlots -- Series B-05) VRDN 1.84%
due 07/01/2022 (a)(b) .............................................. 4,990,000
Illinois Student Assistance Loan Revenue (Series A) VRDN:
4,400,000 1.84% due 09/01/2031 (a) ........................................... 4,400,000
12,450,000 1.84% due 09/01/2032 (a) ........................................... 12,450,000
17,500,000 1.84% due 09/01/2034 (a) ........................................... 17,500,000
5,800,000 Lake County, Illinois Community School District -- 73
(Hawthorn Putters -- Series 329) VRDN 1.83%
due 12/01/2014 (a) ................................................. 5,800,000
5,000,000 Macon County, Illinois Revenue (Millikin University)
VRDN 1.81% due 10/01/2031(a) ....................................... 5,000,000
Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue VRDN:
1,500,000 (Floaters -- Series 962) 1.86% due 12/15/2034 (a)(b) ............... 1,500,000
3,500,000 (Eagle 2004-003) 1.81% due 06/15/2042 (a)(b) ....................... 3,500,000
7,500,000 Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue (Floaters -- Series 913)
VRDN 1.84% due 12/15/2032 (a)(b) ................................... 7,500,000
Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue VRDN:
6,270,000 (ROCS RR II R 270) 1.90% due 12/15/2031 (a)(b) ..................... 6,270,000
9,535,000 (ROCS RR II R 271) 1.90% due 12/15/2032 (a)(b) ..................... 9,535,000
2,130,000 (ROCS RR II R 310) 1.89% due 12/15/2033 (a)(b) ..................... 2,130,000
See Notes to Financial Statements.
58
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
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 1.77% due 10/04/2012 (a)(b) ....................... $ 12,100,000
12,160,000 Municipal Securities Trust Certificates -- Chicago,
Illinois (Class A -- Series 2001-121) VRDN 1.81%
due 12/22/2009 (a)(b) ............................................ 12,160,000
12,495,000 Municipal Securities Trust Certificates -- Chicago,
Illinois (Class A -- Series 2001-124) VRDN 1.75%
due 08/20/2014 (a)(b) ............................................ 12,495,000
1,970,000 Peoria, Illinois IDR (CDC Realty L.P. Project)
VRDN 1.92% due 12/01/2014 (a) .................................... 1,970,000
32,920,000 Regional Transportation Authority Illinois (Floaters --
Series D-818) VRDN 1.80% due 07/01/2033 (a)(b) ................... 32,920,000
4,955,000 Regional Transportation Authority Illinois (Merlots --
Series A-41) VRDN 1.84% due 06/01/2017 (a)(b) .................... 4,955,000
9,955,000 Regional Transportation Authority Illinois (Merlots --
Series A-24) VRDN 1.84% due 07/01/2032 (a)(b) .................... 9,955,000
- ---------------------------------------------------------------------------------------------------------------------------------
Indiana -- 1,350,000 Allen County, Indiana EDR (Waterfurnace International
3.1% Inc.) VRDN 1.94% due 11/01/2014 (a) .............................. 1,350,000
595,000 Allen County, Indiana EDR (YMCA of Greater Fort
Wayne Project) VRDN 1.89% due 12/01/2009 (a) ..................... 595,000
3,475,000 Baugo, Indiana School Building Corporation (Floaters --
Series 676) VRDN 1.80% due 01/15/2010 (a)(b) ..................... 3,475,000
1,125,000 Bloomington, Indiana EDR (Bloomington Square Project)
VRDN 1.87% due 12/01/2008 (a) .................................... 1,125,000
2,100,000 Crawfordsville, Indiana EDR (Performance Master LLC
Project) VRDN 1.97% due 10/01/2018 (a) ........................... 2,100,000
1,945,000 Deerborn County, Indiana EDR (D&S Machine Products
Inc.) VRDN 1.92% due 04/01/2018 (a) .............................. 1,945,000
3,150,000 Elkhart County, Indiana EDR (Patriot Homes Inc.
Project) VRDN 1.91% due 08/01/2012 (a) ........................... 3,150,000
6,010,000 Greencastle, Indiana IDR (Crown Equipment Corp.
Project) VRDN 1.87% due 02/01/2011 (a) ........................... 6,010,000
See Notes to Financial Statements.
59
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Indiana $ 68,575,000 Indiana Bond Bank Revenue (Series A) BAN 2.00%
(continued) due 01/25/2005 .................................................. $ 68,716,697
Indiana Health Facilities Financing Authority Revenue
(Ascension Health Credit Group) FXRDN:
10,000,000 (Series A-1) 1.73% due 07/05/2005 ............................... 10,000,000
8,000,000 (Series A-2) 1.73% due 07/05/2005 ............................... 8,000,000
68,600,000 Indiana State Development Finance Authority Revenue
CP 1.75% due 11/02/2004 ......................................... 68,600,000
8,950,000 Indiana State Development Finance Authority Revenue
Educational Facilities (Cathedral High School) DDN
1.79% due 09/01/2026 (a) ........................................ 8,950,000
2,040,000 Indiana State Development Finance Authority EDR
(Indianapolis Urban League Inc.) VRDN 1.84%
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 2.00% due 12/01/2038 (a) ......................... 40,250,000
280,000 Indiana State Development Finance Authority IDR
(Centurion Industries Inc. Project) VRDN 1.94%
due 10/01/2005 (a) .............................................. 280,000
10,900,000 Indiana State Development Finance Authority IDR
(Republic Services Inc. Project) DDN 1.77%
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) 1.82% due 10/01/2025 (a) ............................. 12,500,000
7,000,000 (Series B) 1.84% due 10/01/2025 (a) ............................. 7,000,000
23,750,000 Indiana State Educational Facilities Authority
Revenue (Depauw University Project) DDN 1.74%
due 07/01/2032 (a) .............................................. 23,750,000
9,080,000 Indiana State Office Building Community Facilities
Revenue (Merlot -- Series B-17) VRDN 1.84%
due 07/01/2023 (a)(b) ........................................... 9,080,000
Indiana Transportation Finance Authority Highway
Revenue VRDN:
2,350,000 (Floaters -- Series 942 D) 1.80% due 12/01/2022 (a)(b) .......... 2,350,000
See Notes to Financial Statements.
60
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Indiana $ 2,000,000 (Merlots -- Series B-21) 1.84% due 12/01/2022 (a)(b) ................ $ 2,000,000
(continued) 7,495,000 (Putters -- Series 479) 1.80% due 06/01/2017 (a)(b) ................. 7,495,000
3,920,000 Indianapolis, Indiana EDR (New Bridges Apartments
Project) VRDN 1.84% due 06/01/2035 (a) .............................. 3,920,000
Indianapolis, Indiana Gas Utility System
(Citizens Gas & Coke) CP:
20,000,000 1.70% due 11/08/2004 ................................................ 20,000,000
30,000,000 1.72% due 11/08/2004 ................................................ 30,000,000
5,025,000 Indianapolis, Indiana Gas Utilities Revenue (Merlot --
Series A-50) VRDN 1.84% due 06/01/2013 (a)(b) ....................... 5,025,000
2,620,000 Indianapolis, Indiana Local Public Board (Putters --
Series 422) VRDN 1.83% due 08/15/2020 (a)(b) ........................ 2,620,000
- --------------------------------------------------------------------------------------------------------------------------------
Iowa -- 4,445,000 Iowa Finance Authority M/F Revenue (The Gables at
1.5% Johnston Project) VRDN 1.86% due 12/01/2037 (a) ..................... 4,445,000
32,400,000 Iowa City, Iowa Revenue (Act Inc.) DDN 1.84%
due 04/01/2032 (a) .................................................. 32,400,000
6,500,000 Iowa Finance Authority Retirement Community Revenue
(Wesley Retirement Services -- Series B) VRDN 1.77%
due 12/01/2033 (a) .................................................. 6,500,000
25,000,000 Iowa Finance Authority Retirement Community Revenue
(Deerfield Retirement System -- Series B) VRDN
1.77% due 12/01/2033 (a) ............................................ 25,000,000
Iowa Finance Authority Revenue (Museum of Art
Foundation) DDN:
6,550,000 1.79% due 06/01/2033 (a) ............................................ 6,550,000
14,500,000 1.79% due 10/01/2033 (a) ............................................ 14,500,000
8,600,000 Iowa Higher Education Loan Authority Revenue
(Buena Vista University Project) VRDN 1.94%
due 12/01/2012 (a) .................................................. 8,600,000
17,895,000 Iowa Higher Education Loan Authority Revenue (Private
College -- Ambrose) DDN 1.74% due 04/01/2033 (a) .................... 17,895,000
Iowa Higher Education Loan Authority Revenue
(Private College -- Des Moines) DDN:
10,200,000 1.79% due 10/01/2033 (a) ............................................ 10,200,000
6,800,000 1.79% due 10/01/2024 (a) ............................................ 6,800,000
See Notes to Financial Statements.
61
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Iowa $ 3,900,000 Louisa County, Iowa PCR Refunding (Iowa-Ill G&E
(continued) Co.) VRDN 1.83% due 03/01/2017 (a) ................................. $ 3,900,000
19,500,000 Louisa County, Iowa PCR Refunding (Iowa-Ill G&E
Co. -- Series A) VRDN 1.83% 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 1.82%
due 06/01/2010 (a)(b) .............................................. 15,370,000
- --------------------------------------------------------------------------------------------------------------------------------
Kansas -- 7,720,000 Johnson County, Kansas Public Building Community
0.8% Lease Revenue (Putters -- 528) VRDN 1.80%
due 09/01/2010 (a)(b) .............................................. 7,720,000
4,210,000 Kansas State Department of Transportation Highway
Revenue (ROCS RR II R 6020) VRDN 1.81%
due 03/01/2019 (a)(b) .............................................. 4,210,000
Kansas State Development Finance Authority Lease
Revenue (Kansas Department Administration) DDN:
10,775,000 (Series J-1) 1.74% due 12/01/2018 (a) .............................. 10,775,000
17,860,000 (Series J-2) 1.74% due 12/01/2034 (a) .............................. 17,860,000
10,170,000 Kansas State Development Finance Authority Revenue
(Hays Medical Center -- Series N) DDN 1.79%
due 05/15/2026 (a) ................................................. 10,170,000
3,995,000 Lawrence, Kansas IDR Board (Prosoco Inc. Project --
Series 98-A) VRDN 1.89% due 12/01/2018 (a) ......................... 3,995,000
4,200,000 Lenexa, Kansas M/F Housing Revenue (Meadows
Apartments Project -- Series A) VRDN 1.82%
due 04/15/2035 (a) ................................................. 4,200,000
26,425,000 Olathe, Kansas Health Facilities Revenue (Olathe
Medical Center -- Series A) DDN 1.74%
due 09/01/2032 (a) ................................................. 26,425,000
2,800,000 Reno County & Labette County, Kansas S/F Mortgage
Revenue (Floaters -- Series 915) VRDN 1.89%
due 12/01/2015 (a) ................................................. 2,800,000
- --------------------------------------------------------------------------------------------------------------------------------
Kentucky -- 1,060,000 Boone County, Kentucky Industrial Building Revenue
2.2% (Diocesan Educational Project) VRDN 1.97%
due 11/01/2018 (a) ................................................. 1,060,000
See Notes to Financial Statements.
62
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Kentucky $ 22,450,000 Breckinridge County, Kentucky Lease Program Revenue
(continued) (Kentucky Assistant County Leasing -- Series A)
DDN 1.74% due 02/01/2032 (a) ........................................ $ 22,450,000
2,400,000 Carroll County, Kentucky PCR (Kentucky Utility
Company Project -- Series A) CP 1.83%
due 11/23/2004 ...................................................... 2,400,000
2,500,000 Carroll County, Kentucky Solid Waste Disposal
Revenue (North American Stainless) VRDN 1.78%
due 05/01/2031 (a) .................................................. 2,500,000
2,660,000 Crestview Hill, Kentucky Industrial Building Revenue
(Thomas More College Project) VRDN 1.87%
due 11/01/2018 (a) .................................................. 2,660,000
1,290,000 Dayton, Kentucky Industrial Building Revenue (Willow
Green Project) VRDN 1.97% due 08/01/2020 (a) ........................ 1,290,000
4,440,000 Glasgow, Kentucky Industrial Building Revenue
(Felker Brothers Corp. Project) VRDN 1.82%
due 04/01/2020 (a) .................................................. 4,440,000
2,700,000 Graves County, Kentucky Solid Waste Disposal
Revenue (Waste Mangement Kentucky LLC Project)
VRDN 1.87% due 03/01/2021 (a) ....................................... 2,700,000
Henderson County, Kentucky Hospital Facilities Revenue
(Community United Methodist) VRDN:
3,500,000 (Series A) 1.76% due 12/01/2008 (a) ................................. 3,500,000
8,590,000 (Series B) 1.76% due 12/01/2025 (a) ................................. 8,590,000
18,210,000 Hopkins County, Kentucky Hospital Revenue (Floaters --
Series 730) VRDN 1.82% due 11/15/2011 (a)(b) ........................ 18,210,000
9,000,000 Jefferson County, Kentucky Environmental Facilities
Revenue (Louisville Gas & Electric Co. -- Series A)
VRDN 1.75% due 12/02/2004 (a) ....................................... 9,000,000
3,000,000 Jefferson County, Kentucky Industrial Building Revenue
(Hamilton Printing Project) VRDN 1.92% due
12/01/2011 (a) ...................................................... 3,000,000
900,000 Jefferson County, Kentucky Industrial Building Revenue
(Thomas Development Project) VRDN 1.94%
due 04/10/2010 (a) .................................................. 900,000
See Notes to Financial Statements.
63
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Kentucky Jefferson County, Kentucky PCR
(continued) (Louisville Gas & Electric Co.) CP:
$ 5,000,000 1.78% due 11/22/2004 .............................................. $ 5,000,000
10,000,000 1.80% due 11/22/2004 .............................................. 10,000,000
11,000,000 1.83% due 11/22/2004 .............................................. 11,000,000
Jefferson County, Kentucky PCR
(Louisville Gas & Electric Co -- Series 93-A) CP:
1,000,000 1.75% due 11/05/2004 .............................................. 1,000,000
2,000,000 1.78% due 11/05/2004 .............................................. 2,000,000
45,200,000 Kenton County, Kentucky Airport Board of Special
Facilities Revenue (Airis Cincinnati LLC -- Series A)
VRDN 1.86% due 07/01/2032 (a) ..................................... 45,200,000
5,740,000 Kenton County, Kentucky Educational Revenue (St. Pius
X School District Project) VRDN 1.87% due 06/01/
2023 (a) .......................................................... 5,740,000
20,000,000 Kentucky State Turnpike Authority Resource Recovery
Revenue (Floater Certificates -- Series 488) VRDN
1.80% due 07/01/2007 (a)(b) ....................................... 20,000,000
5,600,000 Louisville & Jefferson County, Kentucky (Sewer & Drain
Systems Revenue (ROCS RR II R 304) VRDN 1.81%
due 05/15/2037 (a)(b) ............................................. 5,600,000
7,400,000 Mercer County, Kentucky PCR (Kentucky Utility Co.
Project -- Series A) CP 1.83% due 11/23/2004 ...................... 7,400,000
2,000,000 Midway, Kentucky Educational Building Revenue
(Midway College Project) VRDN 1.78%
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 1.87% due 03/01/2021 (a) ..................................... 5,000,000
7,000,000 Morehead, Kentucky League Of Cities (Lease
Program Revenue -- Series A) VRDN 1.78%
due 06/01/2034 (a) ................................................ 7,000,000
2,400,000 Muhlenbery County, Kentucky PCR (Kentucky Utility
Co. Project -- Series A) CP 1.83% due 11/23/2004 .................. 2,400,000
See Notes to Financial Statements.
64
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Kentucky $ 1,450,000 Ohio County, Kentucky Solid Waste Disposal Revenue
(continued) (Waste Management Kentucky LLC Project) VRDN
1.87% due 03/01/2021 (a) .......................................... $ 1,450,000
Timble County, Kentucky PCR (Louisville Gas & Electric
Co. Project -- Series A) CP:
17,500,000 1.73% due 12/02/2004 .............................................. 17,500,000
20,000,000 1.75% due 12/02/2004 .............................................. 20,000,000
4,600,000 1.75% due 11/05/2004 .............................................. 4,600,000
4,495,000 Wickliffe, Kentucky PCR & Solid Waste Disposal
Revenue (Westvaco Corp. Project) VRDN 1.77%
due 01/01/2009 (a) ................................................ 4,495,000
- --------------------------------------------------------------------------------------------------------------------------------
Louisiana -- 4,500,000 Calcasieu Parish Inc. of Louisiana IDB Environmental
1.8% Revenue (Hydroserve Westlake) VRDN 1.83% due
06/01/2025 (a) .................................................... 4,500,000
29,230,000 East Baton Rouge Mortgage Financing Authority
(Series A-R-4) FXRDN 1.88% due 03/10/2005 ......................... 29,230,000
6,100,000 Ernest N Morial, New Orleans, Louisiana (Exhibit Hall
Authority Special Tax Merlots -- Series A-46) VRDN
1.84% due 07/15/2028 (a)(b) ....................................... 6,100,000
15,512,800 Jefferson Parish, Louisiana Home Mortgage Authority
S/F Mortgage Revenue (Series B) FXRDN 1.89%
due 09/23/2005 .................................................... 15,512,800
Louisiana Housing Finance Agency Mortgage Revenue
S/F FXRDN:
37,352,005 1.87% due 04/29/2005 .............................................. 37,352,005
36,230,483 1.88% due 05/31/2005 .............................................. 36,230,483
10,000,000 Louisiana Public Facilities Authority Lease Revenue
VRDN 1.81% due 06/01/2008 (a) ..................................... 10,000,000
18,650,000 Louisiana Public Facilities Authority Revenue (Air
Products & Chemicals Project) VRDN 1.87%
due 12/01/2038 (a) ................................................ 18,650,000
7,320,000 Louisiana Public Facilities Authority Revenue
(Equipment & Capital Facilities Loan Project --
Series A) VRDN 1.81% due 07/01/2023 (a) ........................... 7,320,000
See Notes to Financial Statements.
65
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Louisiana $ 16,000,000 Louisiana State Offshore Term Authority Deepwater Port
(continued) Revenue (1st Stage A-Loop Inc.) DDN 1.77%
due 09/01/2008 (a) .................................................. $16,000,000
11,305,000 Louisiana State University & Agricultural & Mechanical
College Board VRDN 1.81% due 07/01/2032 (a) ......................... 11,305,000
5,875,000 New Orleans, Louisiana IDB M/F Housing Revenue
(LGD Rental Inc. Project) VRDN 1.86% due
09/01/2038 (a) ...................................................... 5,875,000
13,750,000 New Orleans, Louisiana IDB M/F Housing Revenue
FXRDN 1.84% due 12/01/2004 .......................................... 13,750,000
- --------------------------------------------------------------------------------------------------------------------------------
Maine -- 760,000 Eastport, Maine IDR (Passamaquoddy Tribe) VRDN
0.5% 1.87% due 11/01/2006 (a) ............................................ 760,000
1,270,000 Gray, Maine Revenue (Advance Realty Project) VRDN
1.81% due 10/01/2011 (a) ............................................ 1,270,000
24,255,000 Maine Finance Authority Revenue (Jackson Lab Issue
2002) VRDN 1.79% due 07/01/2031 (a) ................................. 24,255,000
26,000,000 Maine State TAN 3.00% due 06/30/2005 .................................. 26,238,246
6,295,000 Maine State BAN 3.00% due 06/23/2005 .................................. 6,350,579
300,000 Millinocket, Maine Revenue (Gardner Chipmills Project)
VRDN 1.91% due 03/01/2005 (a) ....................................... 300,000
4,185,000 Trenton, Maine Revenue (The Talaria Co. Project)
VRDN 1.91% due 10/15/2015 (a) ....................................... 4,185,000
- --------------------------------------------------------------------------------------------------------------------------------
Maryland -- Maryland State Economic Development Corp. Revenue
0.5% (Pharmacopeial Project) DDN:
3,100,000 1.75% due 07/01/2034 (a) ............................................ 3,100,000
7,280,000 1.73% due 07/01/2034 (a) ............................................ 7,280,000
17,500,000 Maryland State Health & Higher Educational Facilities
Authority Revenue (Adventist Health Care -- Series A)
VRDN 1.79% due 01/01/2035 (a) ....................................... 17,500,000
5,000,000 Maryland State Health & Higher Educational Facilities
Authority Revenue (Floaters -- Series 825) VRDN
1.80% due 08/15/2038 (a)(b) ......................................... 5,000,000
See Notes to Financial Statements.
66
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Maryland $ 20,000,000 Montgomery County, Maryland (Series 2002) CP 1.68%
(continued) due 11/08/2004 ............................................ $20,000,000
10,000,000 Montgomery County, Maryland EDR (Riderwood Village
Inc. Project) VRDN 1.80% due 03/01/2034 (a) ............... 10,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Massachusetts -- 5,000,000 Blackstone Valley, Massachusetts Vocational Regional
5.5% School District BAN 3.00% due 07/15/2005 .................. 5,041,311
4,945,000 Clipper Tax-Exempt Trust Housing Finance Authority
(Series 2000-5) VRDN 1.84% due 12/30/2004 (a)(b) .......... 4,945,000
15,000,000 Dover & Sherborn, Massachusetts Regional School
District BAN 1.75% due 11/12/2004 ......................... 15,002,951
9,000,000 Gill-Montague, Massachusetts Regional School District
BAN 2.75% due 07/29/2005 .................................. 9,068,706
5,092,000 Hatfield, Massachusetts BAN 2.75% due 07/29/2005 ............ 5,130,866
18,000,000 Massachusetts State Central Artery (Series A) DDN
1.74% due 12/01/2030 (a) .................................. 18,000,000
8,850,000 Massachusetts State Development Finance Agency
Revenue (Bancroft School) VRDN 1.77%
due 09/01/2031 (a) ........................................ 8,850,000
10,000,000 Massachusetts State Development Finance Agency
Revenue (Fessenden School) VRDN 1.79%
due 08/01/2031 (a) ........................................ 10,000,000
31,000,000 Massachusetts State Development Finance Agency
Revenue (Draper Laboratory Issue) VRDN 1.75%
due 06/01/2030 (a) ........................................ 31,000,000
9,850,000 Massachusetts State Development Finance Agency
Revenue (Cordis Mills LLC) VRDN 1.82%
due 12/01/2032 (a) ........................................ 9,850,000
10,610,000 Massachusetts State Development Finance Agency
Revenue (Gordon College) VRDN 1.74%
due 09/01/2032 (a) ........................................ 10,610,000
25,000,000 Massachusetts State Development Finance Agency
Revenue (Suffolk University Asset Guaranty) VRDN
1.84% due 07/01/2032 (a) .................................. 25,000,000
See Notes to Financial Statements.
67
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Massachusetts $ 15,415,000 Massachusetts State Development Finance Agency
(continued) Revenue (Groton School) VRDN 1.79%
due 03/01/2034 (a) ................................................ $15,415,000
2,500,000 Massachusetts State Development Finance Agency
Revenue (Walnut Hill School District) VRDN 1.77%
due 07/01/2032 (a) ................................................ 2,500,000
4,925,000 Massachusetts State Development Finance Agency
Revenue (Lesley University) VRDN 1.79%
due 07/01/2033 (a) ................................................ 4,925,000
Massachusetts State Development Finance Agency
Revenue (Wentworth Institute of Technology) VRDN:
29,525,000 1.82% due 10/01/2033 (a) .......................................... 29,525,000
11,760,000 1.74% due 10/01/2030 (a) .......................................... 11,760,000
24,490,000 Massachusetts State Health & Educational Facilities
Authority Revenue (Cap Asset Program -- Series E)
DDN 1.75% due 01/01/2035 (a) ...................................... 24,490,000
30,965,000 Massachusetts State Health & Educational Facilities
Authority Revenue (Fairview Extended -- Series B)
VRDN 1.75% due 01/01/2021 (a) ..................................... 30,965,000
9,000,000 Massachusetts State Health & Educational Facilities
Authority Revenue (Floaters -- Series 954) VRDN
1.80% due 07/01/2024 (a)(b) ....................................... 9,000,000
65,685,000 Massachusetts State Health & Educational Facilities
Authority Revenue (Partners Healthcare Sytem --
Series D-3) VRDN 1.74% due 07/01/2038 (a) ......................... 65,685,000
7,860,000 Massachusetts State Health & Educational Facilities
Authority Revenue (The Boston Home Inc. --
Series B) VRDN 1.74% due 06/01/2032 (a) ........................... 7,860,000
Massachusetts State Industrial Finance Agency Revenue
PCR (New England Power Co. Project -- Series A) CP:
40,000,000 1.75% due 11/22/2004 .............................................. 40,000,000
10,500,000 1.82% due 12/07/2004 .............................................. 10,500,000
20,000,000 Massachusetts State Industrial Finance Agency Revenue
PCR (Groton School Issue--Series B) VRDN 1.79%
due 03/01/2028 (a) ................................................ 20,000,000
See Notes to Financial Statements.
68
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Massachusetts $ 28,808,000 Massachusetts State (Floater Certificates -- Series 716-D)
(continued) VRDN 1.76% due 08/01/2018 (a) ...................................... $28,808,000
14,820,000 Massachusetts State (Merlots -- Series A-51) VRDN
1.82% due 08/01/2020 (a) ........................................... 14,820,000
57,871,500 Massachusetts State Water Resource Authority
(Floaters -- Series 742-D) VRDN 1.79%
due 08/01/2019 (a) ................................................. 57,871,500
20,000,000 Mattapoisett, Massachusetts BAN 3.00%
due 09/01/2005 ..................................................... 20,229,503
16,400,000 Municipal Securities Trust Certificates -- Massachusetts
State Port Authority SPL Facility VRDN 1.77%
due 04/28/2016 (a) ................................................. 16,400,000
11,000,000 Nashoba, Massachusetts Regional School District BAN
2.00% due 12/03/2004 ............................................... 11,007,117
7,130,000 New Bedford, Massachusetts BAN 2.75%
due 02/25/2005 ..................................................... 7,157,176
4,441,703 North Adams, Massachusetts BAN 2.00%
due 02/25/2005 ..................................................... 4,453,561
11,000,000 Norwell, Massachusetts BAN 2.00% due 02/17/2005 ...................... 11,028,215
8,000,000 Pembroke, Massachusetts BAN 3.00% due 08/04/2005 ..................... 8,083,953
5,000,000 Quincy, Massachusetts BAN 2.00% due 11/12/2004 ....................... 5,001,292
5,264,900 Shirley, Massachusetts BAN 2.00% due 04/08/2005 ...................... 5,286,313
8,800,000 Spencer East Brookfield, Massachusetts Regional School
District BAN 2.25% due 05/13/2005 .................................. 8,837,607
1,815,000 University of Massachusetts (Building Authority Project
Revenue ROCS RR II R 6016) VRDN 1.79%
due 11/01/2015 (a) ................................................. 1,815,000
16,000,000 Woburn, Massachusetts BAN 3.00% due 10/07/2005 ....................... 16,172,615
5,000,000 Worcester, Massachusetts BAN 3.00% due 09/16/2005 .................... 5,057,996
- ---------------------------------------------------------------------------------------------------------------------------------
Michigan -- 6,840,000 Chelsea, Michigan Economic Development Corp.
3.0% Revenue (Silver Maples of Chelsea) VRDN 1.82%
due 05/15/2028 (a) ................................................. 6,840,000
8,760,000 Dearborn, Michigan Economic Development Corp.
Revenue (Henry Ford Village Inc. Project) VRDN
1.82% due 10/01/2023 (a) ........................................... 8,760,000
See Notes to Financial Statements.
69
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Michigan $ 40,840,000 Detroit, Michigan City School District (Merlots --
(continued) Series A-113) VRDN 1.41% due 07/27/2005 (a)(b) ..................... $40,840,000
6,300,000 Detroit, Michigan Sewer Disposal Revenue VRDN
1.84% due 07/01/2028 (a) ........................................... 6,300,000
2,255,000 Detroit, Michigan Sewer Disposal Revenue (Merlot --
Series B-41) VRDN 1.84% due 07/01/2026 (a)(b) ...................... 2,255,000
1,155,000 Detroit, Michigan Sewer Disposal Revenue Municipal
Sercuities Trust (Series 43) VRDN 1.81%
due 07/01/2028 (a)(b) .............................................. 1,155,000
25,740,000 Eastern Michigan University Revenue DDN 1.74%
due 06/01/2027 (a) ................................................. 25,740,000
30,000,000 Michigan State Building Authority Revenue (Series 3)
CP 1.42% due 11/04/2004 ............................................ 30,000,000
85,000,000 Michigan Municipal (Series B-2) BAN 3.00%
due 08/23/2005 ..................................................... 85,966,887
21,550,000 Michigan Municipal (Series L 58-J) BAN 1.80%
due 08/23/2005 ..................................................... 21,550,000
15,450,000 Michigan State Higher Educational Facilities Authority
Revenue (Ave Maria School of Law Project) VRDN
1.82% due 08/01/2026 (a) ............................................ 15,450,000
2,720,000 Michigan State Higher Educational Facilities Authority
Revenue Davenport University Project) VRDN 1.78%
due 08/01/2027 (a) ................................................. 2,720,000
12,995,000 Michigan State Hospital Finance Authority Revenue
(Merlots -- Series K) VRDN 1.84%
due 11/15/2023 (a)(b) .............................................. 12,995,000
15,000,000 Michigan State Hospital Finance Authority Revenue
(Crittenton -- Series A) VRDN 1.75%
due 03/01/2030 (a) ................................................. 15,000,000
4,230,000 Michigan State Strategic Fund Limited Obligation
Revenue (Weller Truck Parts Project) VRDN 1.92%
due 10/01/2029 (a) ................................................. 4,230,000
3,900,000 Michigan State Strategic Fund Limited Obligation
Revenue (AVL North America Inc. Project) VRDN
1.97% due 04/01/2011 (a) ........................................... 3,900,000
See Notes to Financial Statements.
70
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Michigan $ 6,450,000 Michigan State Strategic Fund Limited Obligation
(continued) Revenue (Sur-Flo Plastics Inc. Project) VRDN 1.92%
due 08/01/2025 (a) .................................................. $6,450,000
2,540,000 Michigan State Strategic Fund Limited Obligation
Revenue (WE Upjohn Institute Project) VRDN 1.78%
due 06/01/2012 (a) .................................................. 2,540,000
19,200,000 Michigan State Strategic Fund Limited Obligation
Revenue (Detroit Symphony -- Series A) DDN 1.74%
due 06/01/2031 (a) .................................................. 19,200,000
7,600,000 Municipal Securities Trust Certificates (Class A --
Series 2001-166 Detroit Michigan Sewer Disposal
Revenue) VRDN 1.75% due 12/15/2021 (a)(b) ........................... 7,600,000
16,335,000 Northern Michigan University Revenue DDN 1.74%
due 06/01/2031 (a) .................................................. 16,335,000
4,120,000 Oakland County, Michigan Economic Development
Corp. Limited Obligation Revenue (Su Dan Co.
Project) VRDN 1.92% due 07/01/2024 (a) .............................. 4,120,000
9,040,000 Oakland County, Michigan Economic Development
Corp. Limited Obligation Revenue (Pontiac Vision
Schools Project) VRDN 1.82% due 08/01/2020 (a) ...................... 9,040,000
5,805,000 Oakland Unversity, Michigan Revenue (ROCS RR II R
2154) VRDN 1.79% due 05/15/2022 (a)(b) .............................. 5,805,000
- --------------------------------------------------------------------------------------------------------------------------------
Minnesota -- 11,500,000 Dakota County, Minnesota Community Development
1.0% Agency M/F Housing Revenue (Regatta Commons
Project -- Series A) DDN 1.84% due 01/01/2038 (a) ................... 11,500,000
10,000,000 Dakota County, Minnesota Community Development
Agency M/F Housing Revenue (Brentwood Hills
Apartments Project -- Series A) DDN 1.84%
due 09/01/2038 (a) .................................................. 10,000,000
18,140,000 Duluth, Minnesota EDA Health Care Facilities Revenue
(Floaters -- Series 895) VRDN 1.82%
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 1.82% due 04/15/2035 (a) ....................................... 2,800,000
See Notes to Financial Statements.
71
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Minnesota $ 16,250,000 Minneapolis St. Paul (Series A) CP 1.65%
(continued) due 11/04/2004 ..................................................... $16,250,000
12,500,000 Minnesota Rural Water Finance Authority (Public
Project -- Series B) BAN 3.00% due 10/01/2005 ...................... 12,641,030
2,175,000 Minnesota State (ROCS RR II R 4065) VRDN 1.81%
due 08/01/2023 (a) ................................................. 2,175,000
27,800,000 Rochester, Minnesota Health Care Facilities Revenue
(Mayo Foundation -- Series A) CP 1.70%
due 11/18/2004 ..................................................... 27,800,000
18,510,000 University of Minnesota (Series A) VRDN 1.78%
due 01/01/2034 (a) ................................................. 18,510,000
Mississippi -- 5,500,000 Medical Center Educational Building Corp. Mississippi
0.9% Revenue (Pediatric Facilities Project) VRDN 1.76%
due 06/01/2034 (a) ................................................. 5,500,000
10,000,000 Mississippi Business Finance Corp. Solid Waste Disposal
Revenue (Mississippi Power Co. Project) DDN 1.85%
due 05/01/2028 (a) ................................................. 10,000,000
12,500,000 Mississippi Home Corp. Lease Purchase Revenue
VRDN 1.86% due 10/01/2007 (a) ...................................... 12,500,000
25,896,000 Mississippi Home Corp. S/F Revenue (Floaters --
Series 714) VRDN 1.89% due 10/03/2005 (a)(b) ....................... 25,896,000
37,388,000 Mississippi State Hospital Equipment & Facilities
Authority Revenue (North Mississippi Health
Services -- Series 1) CP 1.70% due 11/05/2004 ...................... 37,388,000
11,750,000 Mississippi State Hospital Equipment & Facilities
Authority Revenue (North Mississippi Health
Services -- Series 1) VRDN 1.75% due 05/15/2030 (a) ................ 11,750,000
Missouri -- 2.1% 5,000,000 Berkeley, Missouri IDA Revenue (Wetterau Project)
VRDN 1.80% due 07/01/2008 (a) ...................................... 5,000,000
3,600,000 Cabool, Missouri IDA IDR (Ameriduct Worldwide Inc.
Project) VRDN 2.02% due 05/01/2010 (a) ............................. 3,600,000
18,525,000 Kansas City, Missouri IDA Revenue (Ewing Marion
Kauffman) DDN 1.74% due 04/01/2027 (a) ............................. 18,525,000
See Notes to Financial Statements.
72
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Missouri $ 15,105,000 Missouri State Development Finance Board Lease
(continued) Revenue (Missouri Associate Municipal Utilities Lease)
DDN 1.79% due 06/01/2033 (a) .................................... $15,105,000
26,550,000 Missouri State Health & Higher Educational Facilities
Authority Revenue (Bethesda Health Group -- Series
A) DDN 1.79% due 08/01/2031 (a) ................................. 26,550,000
Missouri State Health & Higher Educational Facilities
Authority Revenue (Pooled Hospital Loan Program)
VRDN:
3,965,000 (Series B) 2.16% due 08/01/2029 (a) ............................. 3,965,000
3,500,000 (Series C) 1.79% due 08/01/2029 (a) ............................. 3,500,000
25,900,000 Missouri State Health & Higher Educational Facilities
Authority Revenue (Christian Brothers -- Series A)
DDN 1.79% due 10/01/2032 (a) .................................... 25,900,000
18,040,000 Missouri State Health & Higher Educational Facilities
Authority Revenue (Louis University -- Series A)
DDN 1.79% due 10/01/2016 (a) .................................... 18,040,000
6,000,000 Missouri State Health & Educational Facilities Authority
(School District Advance Funding Program) VRDN
1.74% due 01/01/2020 (a) ........................................ 6,000,000
6,800,000 Missouri State Health & Educational Facilities Authority
Revenue (Bethesda Health Group -- Series A) DDN
1.79% due 08/01/2031 (a) ........................................ 6,800,000
9,370,000 Missouri State Health & Educational Facilities Authority
Revenue (Pooled Hospital -- Series B) VRDN 2.16%
due 08/01/2029 (a) .............................................. 9,370,000
3,845,000 Missouri State Health & Educational Facilities Authority
Revenue (Saint Louis University) DDN 1.79%
due 07/01/2032 (a) .............................................. 3,845,000
16,790,000 Missouri State Health & Educational Facilities Authority
Revenue (Saint Louis University -- Series B) DDN
1.79% due 10/01/2024 (a) ........................................ 16,790,000
7,785,000 Missouri State Health & Educational Facilities Authority
Revenue (Ranken Tech College) DDN 1.79%
due 11/15/2017 (a) .............................................. 7,785,000
See Notes to Financial Statements.
73
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================================
Missouri $ 17,890,000 Missouri State Health & Educational Facilities Authority
(continued) Revenue (Rockhurst University) DDN 1.74%
due 11/01/2032 (a) ................................................ $17,890,000
5,400,000 Missouri State Health & Educational Facilities Authority
Revenue (De Smet Jesuit High School) DDN 1.79%
due 11/01/2027 (a) ................................................ 5,400,000
32,100,000 Missouri Higher Educational Loan Authority
(Student Loan Revenue -- Series B) VRDN 1.78%
due 06/01/2020 (a) ................................................ 32,100,000
4,300,000 Saint Charles County, Missouri IDA M/F Revenue
(Peine Lakes Apartments Project) VRDN 1.86%
due 02/01/2039 (a) ................................................ 4,300,000
Saint Louis County, Missouri IDA M/F Housing Revenue
(Metro Lofts Apartments) VRDN:
13,250,000 (Series A) 1.83% due 03/15/2036 (a) ............................... 13,250,000
4,050,000 (Series C) 1.86% due 09/15/2036 (a) ............................... 4,050,000
1,135,000 Sikeston, Missouri IDA Revenue (Heritage American
Homes LP/North Ridge Homes Inc. Project) VRDN
1.91% due 07/01/2009 (a) .......................................... 1,135,000
- ---------------------------------------------------------------------------------------------------------------------------------
Montana -- 10,940,000 Helena, Montana Higher Educational Revenue
0.2% (Carroll College Campus Housing) DDN 1.79%
due 10/01/2032 (a) ................................................ 10,940,000
9,250,000 Montana State Board Investment Municipal Finance
FXRDN 1.20% due 03/01/2005 ........................................ 9,250,000
- ---------------------------------------------------------------------------------------------------------------------------------
Nebraska -- 39,823,000 American Public Energy Agency Nebraska Gas Supply
1.5% Revenue (National Public Gas Agency Project --
Series A) VRDN 1.81% due 02/01/2014 (a) ........................... 39,823,000
20,500,000 Lancaster County, Nebraska Hospital Authority Revenue
(Bryan Medical Center Project) DDN 1.74%
due 06/01/2018 (a) ................................................ 20,500,000
23,000,000 Lincoln, Nebraska Electric System Revenue CP 1.70%
due 11/08/2004 .................................................... 23,000,000
10,850,000 Nebraska Educational Finance Authority Revenue
(Creighton University Project) DDN 1.74%
due 08/01/2031 (a) ................................................ 10,850,000
See Notes to Financial Statements.
74
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
===============================================================================================================
Value
Face Amount Issue (Note 1a)
===============================================================================================================
Nebraska $ 22,000,000 Nebraska Public Power District Revenue CP 1.41%
(continued) due 11/09/2004 ........................................ $22,000,000
6,570,000 Nebraska Public Power District Revenue Eagle VRDN
1.81% due 01/01/2035 (a) .............................. 6,570,000
48,900,000 Omaha Public Power District Nebraska Electric Revenue
CP 1.70% due 11/10/2004 ............................... 48,900,000
- ---------------------------------------------------------------------------------------------------------------
Nevada -- 19,400,000 Clark County, Nevada IDR (Nevada Cogeneration I
0.7% Project) DDN 1.85% due 11/01/2020 (a) ................. 19,400,000
5,970,000 Clark County, Nevada (ROCS RR II R 1035) VRDN
1.81% due 06/01/2021 (a)(b) ........................... 5,970,000
3,990,000 Clark County, Nevada (ROCS RR II R 4012) VRDN
1.85% due 07/01/2023 (a)(b) ........................... 3,990,000
5,890,000 Clark County, Nevada School District (Merlots --
Series B02) VRDN 1.84% due 06/15/2019 (a)(b) .......... 5,890,000
11,290,000 Eagle Tax-Exempt Trust -- Clark County, Nevada
School District (Series 962804) VRDN 1.81% due
06/15/2015 (a)(b) ..................................... 11,290,000
6,000,000 Henderson, Nevada Public Housing Revenue (Pueblo II --
Series B) VRDN 1.83% due 08/01/2026 (a) ............... 6,000,000
9,985,000 Las Vegas Valley, Nevada Water District (Merlots --
B-10) VRDN 1.84% due 06/01/2024 (a)(b) ................ 9,985,000
16,855,000 Truckee Meadows, Nevada Water Authority Revenue
(Municipal Security Trust Receipts -- Series SGA 137)
VRDN 1.75% due 07/01/2030 (a)(b) ...................... 16,855,000
- ---------------------------------------------------------------------------------------------------------------
New Hampshire -- 8,860,000 New Hampshire Health & Educational Facilities
1.1% Authority Revenue (Riverwoods at Exeter) VRDN
1.80% due 03/01/2034 (a) .............................. 8,860,000
11,000,000 New Hampshire Health & Educational Facilities
Authority Revenue (Floaters -- Series 866) VRDN
1.82% due 08/15/2021 (a)(b) ........................... 11,000,000
5,475,000 New Hampshire Higher Educational & Health Facility
Authority Revenue (Floaters -- Series 772) VRDN
1.82% due 01/10/2017 (a)(b) ........................... 5,475,000
See Notes to Financial Statements.
75
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
New Hampshire $ 9,890,000 New Hampshire Higher Educational & Health Facility
(continued) Authority Revenue (Wentworth Douglass Hospital
Radianassurance) DDN 1.84% due 01/01/2031 (a) .......... $9,890,000
New Hampshire State (Series A) CP:
21,000,000 1.88% due 11/23/2004 ................................... 21,000,000
35,850,000 1.26% due 11/02/2004 ................................... 35,850,000
25,000,000 1.75% due 12/01/2004 ................................... 25,000,000
3,600,000 New Hampshire State Business Finance Authority
Industrial Facilities Revenue (Wiggins Airways Inc.)
VRDN 1.84% due 12/01/2033 (a) .......................... 3,600,000
2,240,000 New Hampshire State Business Finance Authority
Industrial Facilities Revenue (JMT Properties LLC)
VRDN 1.85% due 07/01/2018 (a) .......................... 2,240,000
2,850,000 New Hampshire State Business Finance Authority
Revenue (Montgomery Wire Corp.) VRDN 1.84%
due 02/01/2014 (a) ..................................... 2,850,000
- ----------------------------------------------------------------------------------------------------------------
New Jersey -- 65,000,000 New Jersey State Floating Rate Trust (Series D) VRDN
0.6% 1.80% due 06/24/2005 (a) ............................... 65,000,000
- ----------------------------------------------------------------------------------------------------------------
New Mexico -- 5,160,000 Bernalillo County, New Mexico Gross Receipts Tax
0.5% Revenue (Macon Trusts) VRDN 1.80%
due 04/01/2027 (a)(b) .................................. 5,160,000
3,000,000 New Mexico Finance Authority Revenue (Floaters --
Series 949) VRDN 1.80% due 06/15/2012 (a) .............. 3,000,000
New Mexico Mortgage Finance Authority S/F FXRDN:
21,188,179 1.84% due 03/01/2005 ................................... 21,188,179
16,963,779 1.83% due 09/23/2005 ................................... 16,963,779
15,000,000 New Mexico State (Floaters Trust -- Series L38) VRDN
1.80% due 06/30/2005 (a)(b) ............................ 15,000,000
- ----------------------------------------------------------------------------------------------------------------
New York -- 20,400,000 Binghamton, New York BAN 3.00% due 09/22/2005 .......... 20,632,141
2.2% 5,500,000 Connetquot, New York Central School District BAN
2.00% due 01/27/2005 ................................... 5,511,112
8,000,000 Herricks, New York School District BAN 2.00%
due 12/02/2004 ......................................... 8,005,556
See Notes to Financial Statements.
76
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
New York$ 10,000,000 Hilton, New York Central School District BAN 3.00%
(continued) due 06/23/2005 ......................................... $10,085,641
9,275,000 Long Island Power Authority, New York Electric System
Revenue (Floaters -- Series 822) VRDN 1.78%
due 09/01/2029 (a)(b) ................................... 9,275,000
60,870,000 Metropolitan Transportation Authority, New York
Revenue (Floaters -- Series 823-D) VRDN 1.78%
due 11/15/2023 (a)(b) ................................... 60,870,000
30,000,000 New York City Transportation Finance Authority VRDN
1.69% due 11/09/2004 (a) ................................ 30,000,000
35,000,000 New York, New York (ROCS RR II 251) VRDN 1.83%
due 12/15/2019 (a)(b) ................................... 35,000,000
30,315,000 Rochester, New York (Series II) BAN 3.00%
due 10/21/2005 .......................................... 30,635,176
10,000,000 Rochester, New York (Series III) RAN 3.00%
due 06/30/2005 .......................................... 10,078,445
7,620,074 Sidney, New York Central School District BAN 3.00%
due 06/30/2005 .......................................... 7,682,256
25,000,000 Ulster County, New York BAN 2.75% due 06/10/2005 ......... 25,171,199
- ----------------------------------------------------------------------------------------------------------------
North Carolina -- 14,000,000 Municipal Securities Trust Certificates (Class A --
0.8% Series 2001-125) DDN 1.75% 07/23/2015 (a)(b)............. 14,000,000
20,000,000 North Carolina Housing Finance Agency
(Home Ownership -- Series 17-C) VRDN 1.78%
due 07/01/2033 (a) ...................................... 20,000,000
24,805,000 North Carolina Medical Care Community Health Care
Facilities Revenue (Carol Woods Project) DDN 1.78%
due 04/01/2031 (a) ...................................... 24,805,000
17,650,000 North Carolina Medical Care Community Health Care
Facilities Revenue (Friends Home) VRDN 1.80%
due 09/01/2033 (a) ...................................... 17,650,000
21,795,000 North Carolina Medical Care Community Retirement
Revenue (Adult Community Services -- Series B) DDN
1.76% due 11/15/2009 (a) ................................ 21,795,000
- ---------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
77
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
North Dakota -- $ 32,880,000 Ward County, North Dakota Health Care Facilities
0.3% Revenue (Trinity Obligation Group -- Series A)
DDN 1.79% due 07/01/2029 (a) ........................... $32,880,000
- ----------------------------------------------------------------------------------------------------------------
Ohio -- 4.4% 8,000,000 ABN-AMRO Muni Tops -- Cincinnati Ohio City
School District (Series 2003-34) VRDN 1.80%
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
4,995,000 ABN-AMRO Muni Tops -- Certificates Trust
(Series 2004-23) VRDN 1.80% due 12/01/2011 (a)(b) 4,995,000
9,755,000 Akron, Ohio BAN 2.00% due 11/04/2004 ...................... 9,755,750
2,100,000 Brunswick, Ohio BAN 2.50% due 05/26/2005 .................. 2,109,900
5,295,000 Butler County, Ohio Hospital Facilities Revenue
(Middletown Regional Hosptial) VRDN 1.78%
due 11/01/2010 (a) ....................................... 5,295,000
5,000,000 Cincinnati, Ohio City School District (Series 2004-34)
VRDN 1.80% due 12/01/2031 (a) ............................ 5,000,000
9,300,000 Clinton County, Ohio Hospital Revenue (McCullough-
Hydo Project -- Series B-1) VRDN 1.82%
due 11/01/2020 (a) ....................................... 9,300,000
9,300,000 Clinton County, Ohio Hospital Revenue (Series D-1)
VRDN 1.84% due 12/01/2015 (a) ............................ 9,300,000
5,018,000 Clipper Tax-Exempt Trust -- Ohio Housing Finance
Agency (Series 2000-4) VRDN 1.88%
due 06/01/2005 (a)(b) .................................... 5,018,000
10,000,000 Columbus, Ohio Regional Apartment Authority Revenue
(Series A) VRDN 1.78% due 01/01/2030 (a) ..................10,000,000
4,300,000 Cuyahoga County, Ohio Civic Facilities Revenue
Center for Families & Children VRDN 1.84%
due 06/01/2024 (a) ...................................... 4,300,000
10,005,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(Jennings Center) VRDN 1.84% due 11/01/2023 (a) ...........10,005,000
See Notes to Financial Statements.
78
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
Ohio $ 7,815,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(continued) (Metrohealth System Project) VRDN 1.82%
due 03/01/2033 (a) .................................... $7,815,000
4,900,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(Sisters of Charity Health System) VRDN 1.81%
due 11/01/2030 (a) .................................... 4,900,000
2,145,000 Cuyahoga County, Ohio M/F Revenue (St. Vitus Village
Apartments Project) VRDN 1.84% due 06/01/2022 (a) 2,145,000
4,655,000 Deerfield Township, Ohio (Tax Increment Revenue --
Series B) VRDN 1.82% due 12/01/2022 (a) ............... 4,655,000
3,500,000 Eagle Tax-Exempt Trust -- Ohio Water Development
Authority (Ohio Edison) VRDN 1.80%
due 07/01/2015 (a)(b) ................................. 3,500,000
4,800,000 Eagle Tax-Exempt Trust -- Ohio Edison (Series 953509)
VRDN 1.80% due 07/01/2015 (a)(b) ...................... 4,800,000
15,000,000 Eagle Tax-Exempt Trust -- Cleveland Water
(Series 983501) VRDN 1.80% due 01/01/2025 (a)(b) ...... 15,000,000
22,065,000 Eagle Tax-Exempt Trust -- Ohio State Turnpike Revenue
(Series 983502) VRDN 1.80% due 02/15/2020 (a)(b) ...... 22,065,000
8,725,000 Franklin County, Ohio Hospital Revenue (Children's
Hospital) VRDN 1.78% due 11/01/2025 (a) ............... 8,725,000
10,305,000 Franklin County, Ohio Hospital Revenue
(Children's Hospital Project Ambac) VRDN 1.78%
due 11/01/2033 (a) .................................... 10,305,000
4,365,000 Franklin County, Ohio M/F Revenue (Community
Housing Network) VRDN 1.84% due 03/01/2027 (a) 4,365,000
7,335,000 Geauga County, Ohio Revenue (Sisters of Notre Dame
Project) VRDN 1.84% due 08/01/2016 (a) ................ 7,335,000
13,750,000 Hamilton County, Ohio Hospital Facilities Revenue
(Children's Hospital Medical Center) VRDN 1.78%
due 05/15/2017 (a) .................................... 13,750,000
10,615,000 Hamilton County, Ohio Parking System Revenue VRDN
1.78% due 12/01/2026 (a) .............................. 10,615,000
20,305,000 Hamilton County, Ohio Student Housing Revenue
(Stratford Heights Project) VRDN 1.79%
due 08/01/2036 (a) .................................... 20,305,000
See Notes to Financial Statements.
79
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
Ohio $ 11,570,000 Hamilton County, Ohio Student Housing Revenue
(continued) (Block 3 Project) VRDN 1.79% due 08/01/2036 (a) ..........$11,570,000
7,500,000 Huron County, Ohio Hospital Facilities Revenue
(Norwalk Area Health System) VRDN 1.79%
due 12/01/2027 (a) ....................................... 7,500,000
5,000,000 Kent, Ohio BAN 2.75% due 10/20/2005 ....................... 5,040,294
4,600,000 Licking County, Ohio IDR (Renosol Corp. Project)
VRDN 1.92% due 06/01/2030 (a) ............................ 4,600,000
3,655,000 Lucas-Beacon Place Housing Development Corp. M/F
Revenue (Beacon Place Apartments Project) FXRDN
2.00% due 03/15/2005 ..................................... 3,655,000
4,700,000 Mason, Ohio BAN 2.75% due 05/26/2005 ..................... 4,728,700
1,695,000 Mentor, Ohio IDR (Risch Investments/Roll-Kraft Project)
VRDN 1.92% due 08/01/2017 (a) ............................ 1,695,000
11,435,000 Middleburg Heights, Ohio Hospital Revenue (Southwest
General Health) VRDN 1.81% due 08/15/2022 (a) ............11,435,000
2,600,000 Montgomery County, Ohio EDR (Benjamin & Marian
Project -- Series A) VRDN 1.84% due 04/01/2011 (a) 2,600,000
Montgomery County, Ohio Health Revenue (Miami
Valley Hospital -- Series 1998-B) CP:
50,000,000 1.27% due 11/10/2004 ......................................50,000,000
50,000,000 1.80% due 12/08/2004 ......................................50,000,000
44,500,000 Montgomery County, Ohio Health Revenue (Miami
Valley Hospital -- Series 1998-A) DDN 1.74%
due 11/15/2022 (a) .......................................44,500,000
12,000,000 Municipal Securities Trust Certificates (Class A --
Series 104) VRDN 1.75% due 11/14/2017 (a)(b) .............12,000,000
1,300,000 Ohio State Air Quality Development Authority Revenue
(Cincinnati Gas & Electric -- Series B) VRDN 1.92%
due 09/01/2030 (a) ....................................... 1,300,000
7,320,000 Ohio State EDR (Goodwill Industrial Miami Valley
Project) VRDN 1.81% due 06/01/2023 (a) ................... 7,320,000
See Notes to Financial Statements.
80
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
Ohio $ 4,000,000 Ohio State Higher Educational Facilities Revenue
(continued) (Ashland University Project) VRDN 1.81%
due 09/01/2024 (a) ................................... $4,000,000
1,680,000 Ottawa County, Ohio IDR (Adrian Sand & Stone Inc.
Project) VRDN 1.89% due 10/01/2008 (a) ............... 1,680,000
5,500,000 Painesview, Ohio Local School District BAN 1.76%
due 02/17/2005 ....................................... 5,505,435
8,070,000 Port Authority of Columbiana County, Ohio IDR
(GEI of Columbiana Inc. Project) VRDN 1.89%
due 06/01/2022 (a) ................................... 8,070,000
2,370,000 Princeton, Ohio City School District (Series 50-A)
VRDN 1.80% due 12/01/2030 (a) ........................ 2,370,000
6,540,000 Richland County, Ohio Revenue (Mansfield Area
YMCA Project) VRDN 1.84% due 11/01/2019 (a) .......... 6,540,000
9,075,000 Salem, Ohio Civic Facilities Revenue (Salem Community
Center Inc. Project) VRDN 1.84% due 06/01/2027 (a) 9,075,000
South Lebanon Villiage, Ohio M/F Revenue (Housing --
Pedcor Invests -- Cedars) VRDN:
7,700,000 (Series A) 1.90% due 09/01/2038 (a) .................. 7,700,000
1,100,000 (Series B) 1.85% due 09/01/2038 (a) .................. 1,100,000
1,600,000 Springboro, Ohio BAN 2.75% due 05/26/2005 ............ 1,609,770
20,000,000 University of Toledo, Ohio General Receipts DDN
1.74% due 06/01/2032 (a) ............................. 20,000,000
4,245,000 Willoughby, Ohio IDR (Kennedy Group Inc. Project)
VRDN 1.89% due 09/01/2018 (a) ........................ 4,245,000
1,580,000 Wood County, Ohio IDR (GHT Property Management
LLC Project) VRDN 1.91% due 08/01/2019 (a) ........... 1,580,000
2,235,000 Wood County, Ohio IDR (TL INDS & AMPP Inc.
Project) VRDN 1.89% due 05/01/2011 (a) ............... 2,235,000
- ---------------------------------------------------------------------------------------------------------------------------------
Oklahoma -- Cleveland County, Oklahoma Development Authority
1.8% Cleveland County, Oklahoma Development Authority
S/F Revenue FXRDN:
4,100,000 1.89% due 05/25/2005 ................................. 4,100,000
4,185,000 1.93% due 04/25/2005 ................................. 4,185,000
See Notes to Financial Statements.
81
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=======================================================================================================================
Value
Face Amount Issue (Note 1a)
=======================================================================================================================
Oklahoma $ 17,827,242 Comanche County, Oklahoma Home Finance S/F
(continued) Revenue Notes (Series A) FXRDN 1.89%
due 04/01/2005 .............................................. $17,827,242
3,719,535 Comanche County, Oklahoma Home Finance S/F
Revenue Notes (Series A) FXRDN 1.89%
due 05/02/2005 .............................................. 3,719,535
7,500,000 Grand Gateway Home Finance Authority S/F Mortgage
Revenue (Series A) FXRDN 1.88% due 02/01/2005 ............... 7,500,000
5,415,000 Oklahoma County, Oklahoma Finance Authority
Revenue (Oklahoma County Housing Preservation)
VRDN 1.79% due 01/01/2033 (a) ............................... 5,415,000
30,170,000 Oklahoma Development Finance Authority Revenue
(Inverness Village -- Continuing Care Retirement --
Series C) DDN 1.79% due 02/01/2012 (a) ...................... 30,170,000
5,000,000 Oklahoma Development Finance Authority Revenue
(ConocoPhillips Co. Project) FXRDN 1.35%
due 12/01/2004 .............................................. 5,000,000
46,392,087 Oklahoma County, Oklahoma Home Finance Authority
S/F Mortgage Revenue FXRDN 1.90%
due 05/02/2005 .............................................. 46,392,087
4,079,000 Oklahoma Housing Finance Agency S/F Revenue
FXRDN 1.98% due 05/25/2005 .................................. 4,079,000
70,260,000 Oklahoma State Industrial Authority Revenue (Integris
Baptist -- Series B) VRDN 1.74% due 08/15/2029 (a) .......... 70,260,000
11,395,000 Tulsa County, Oklahoma Home Finance Authority S/F
Mortgage Revenue (Series A) FXRDN 1.89%
due 04/01/2005 .............................................. 11,395,000
- ---------------------------------------------------------------------------------------------------------------------------------
Oregon -- 10,000,000 ABN-AMRO Muni Tops -- Portland, Oregon
1.3% (Series 2001-4) VRDN 1.80% due 06/01/2009 (a)(b) ............ 10,000,000
4,646,500 Clackamas County, Oregon Health Facilities Authority
Hospital Revenue (Floaters -- Series 689) VRDN
1.84% due 12/25/2005 (a)(b) ................................. 4,646,500
See Notes to Financial Statements.
82
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=============================================================================================================
Value
Face Amount Issue (Note 1a)
=============================================================================================================
Oregon $ 8,250,000 Multnomah County, Oregon Hospital Facilities
(continued) Authority Revenue (Holladay Park Plaza Revenue
Project) DDN 1.76% due 11/15/2033 (a) .............. $8,250,000
5,015,000 Oregon State (ROCS RR II R 6001) VRDN 1.81%
due 08/01/2022 (a)(b) .............................. 5,015,000
Oregon State EDR (Newsprint Co. Project) DDN:
21,900,000 (Series 197) 1.77% due 08/01/2025 (a)(b) ........... 21,900,000
16,070,000 (Series 197) 1.77% due 12/01/2025 (a)(b) ........... 16,070,000
18,600,000 (Series 202) 1.77% due 04/01/2026 (a)(b) ........... 18,600,000
13,000,000 (Series 203) 1.77% due 12/01/2026 (a)(b) ........... 13,000,000
5,410,000 Oregon State Health, Housing, Educational & Cultural
Facilities Authority (Assumption Village Project --
Series A) VRDN 1.79% due 03/01/2033 (a) ............ 5,410,000
Oregon State Health Sciences University Revenue
15,000,000 (Series A) 1.79% due 07/01/2033 (a) ................ 15,000,000
24,000,000 (Series B) 1.79% due 07/01/2033 (a) ................ 24,000,000
6,400,000 Oregon State Housing & Community Services Revenue
S/F (Mortgage Program -- Series D) FXRDN 1.16%
due 05/05/2005 ..................................... 6,400,000
7,750,000 Portland, Oregon EDR (Broadway Project -- Series A)
VRDN 1.79% due 04/01/2035 (a) ...................... 7,750,000
- -------------------------------------------------------------------------------------------------------------
Pennsylvania -- 15,535,000 Allegheny County, Pennsylvania IDA Health & Housing
2.7% Facilities Revenue (Longwood -- Series B) DDN
1.78% due 07/01/2027 (a) ........................... 15,535,000
11,500,000 Allegheny County, Pennsylvania (Series C-51) FXRDN
1.40% due 05/01/2005 ............................... 11,500,000
1,515,000 Cumberland County, Pennsylvania Municipal
Authority Retirement Community Revenue
(Wesley Affiliated Services -- Series C) VRDN 1.77%
due 01/01/2037 (a) ................................. 1,515,000
43,005,000 Dauphin County, Pennsylvania General Authority
Revenue (School District Pooled Finance) VRDN
1.84% due 09/01/2032 (a) ........................... 43,005,000
See Notes to Financial Statements.
83
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
===================================================================================================================
Value
Face Amount Issue (Note 1a)
===================================================================================================================
Pennsylvania $ 47,000,000 Emmaus, Pennsylvania General Authority Revenue
(continued) (Loan Program -- Series A) VRDN 1.78%
due 03/01/2030 (a) ...................................... $47,000,000
Emmaus, Pennsylvania General Authority Revenue
(Local Government Pool) VRDN:
4,500,000 (Series C-7) 1.79% due 03/01/2024 (a) ................... 4,500,000
5,900,000 (Series E-18) 1.79% due 03/01/2024 (a) .................. 5,900,000
8,725,000 Erie County, Pennsylvania Hospital Authority
Revenue (Floaters -- Series 820) VRDN 1.80%
due 07/01/2022 (a)(b) ................................... 8,725,000
4,000,000 Montgomery County, Pennsylvania IDA PCR VRDN
1.77% due 10/01/2034 (a) ................................ 4,000,000
19,300,000 Municipal Securities Trust Certificates -- Pennsylvania
State (Class A -- Series 110) DDN 1.75%
due 08/17/2010 (a)(b) ................................... 19,300,000
9,610,000 New Garden, Pennsylvania General Authority Municipal
Revenue (Municipal Pooled Financing Program --
Series I) VRDN 1.84% due 11/01/2029 (a) ................. 9,610,000
44,800,000 New Garden, Pennsylvania General Authority Municipal
Revenue (Municipal Pooled Financing Program --
Series II) VRDN 1.84% due 12/01/2033 (a) ................ 44,800,000
14,000,000 Pennsylvania State (Putters -- Series 512) VRDN 1.78%
due 09/01/2014 (a)(b) ................................... 14,000,000
8,430,000 Pennsylvania State Turnpike Community Revenue
(Series 2004-29) VRDN 1.80% due 12/01/2034 (a) .......... 8,430,000
300,000 Philadelphia, Pennsylvania Hospital & Higher
Educational Authority Revenue (Wills Eye Hospital
Project) VRDN 1.76% due 11/01/30 (a) .................... 300,000
9,364,500 Philadelphia, Pennsylvania School District (Floaters --
Series 496) VRDN 1.80% due 04/01/2027 (a)(b) ............ 9,364,500
71,500,000 Philadelphia, Pennsylvania School District TRAN 3.00%
due 06/30/2005 .......................................... 72,145,692
- -------------------------------------------------------------------------------------------------------------------
Puerto Rico -- 66,000,000 Puerto Rico, Commonwealth TRAN 3.00%
0.6% due 07/29/2005 .......................................... 66,652,597
------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
84
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
===================================================================================================================
Value
Face Amount Issue (Note 1a)
===================================================================================================================
Rhode Island -- $ 7,500,000 Lincoln, Rhode Island BAN 1.70% due 11/08/2004 .......... $7,580,682
0.4% 3,400,000 Rhode Island State EDR (Immunex Rhode Island Corp.
Sewer Project) VRDN 1.84% due 12/01/2023 (a) ............ 3,400,000
7,000,000 Rhode Island State Health & Educational Building
Corp. Revenue (La Salle Academy) VRDN 1.77%
due 07/01/2033 (a) ...................................... 7,000,000
5,000,000 Rhode Island State Health & Educational Building
Corp. Revenue (Jewish Services Agency) VRDN 1.77%
due 12/01/2032 (a) ...................................... 5,000,000
5,000,000 Rhode Island State Health & Educational Building
Corp. Revenue (Pennfield School) VRDN 1.77%
due 09/01/2034 (a) ...................................... 5,000,000
3,150,000 Rhode Island State Health & Educational Building
Corp. Revenue (Thundermist) VRDN 1.77%
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
1.82% due 12/01/2028 (a) ................................ 2,470,000
2,300,000 Rhode Island State Industrial Facilities Corporation IDR
(Capital Development Corp. Project) VRDN 1.72%
due 11/01/2005 (a) ...................................... 2,300,000
4,270,000 Rhode Island State Industrial Facilities Corporation IDR
(Hall Real Estate LLC Project) VRDN 1.84%
due 02/01/2021 (a) ...................................... 4,270,000
1,050,000 Rhode Island State Industrial Facilities Corporation IDR
(Gardener Specialty -- Series A) VRDN 1.85%
due 05/01/2021 (a) ...................................... 1,050,000
------------------------------------------------------------------------------------------------------------------
South Carolina -- 4,100,000 Darington County, South Carolina IDR (Nucor Corp.
0.8% Project -- Series A) VRDN 1.85% 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
1.81% due 05/01/2019 (a)(b) ............................. 5,280,000
5,000,000 Rock Hill, South Carolina Utilities System Revenue
(Series B) VRDN 1.80% due 01/01/2033 (a) ................ 5,000,000
See Notes to Financial Statements.
85
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
South Carolina $ 10,800,000 South Carolina Governmental Organizations Certificates
(continued) Partnership BAN 2.75% due 04/15/2005 ................. $10,858,781
20,950,000 South Carolina EDA Health Facilities Revenue
(Episcopal Church Home) VRDN 1.86%
due 04/01/2027 (a) ................................... 20,950,000
6,250,000 South Carolina EDA EDR (Holcim US Inc. Project)
VRDN 1.92% due 12/01/2033 (a) ........................ 6,250,000
11,250,000 South Carolina EDA EDR (Giant Cement Holding Inc.)
VRDN 1.83% due 12/01/2022 (a) ........................ 11,250,000
1,045,000 South Carolina EDA EDR (Parkway Products Inc.
Project) VRDN 1.86% due 11/01/2007 (a) ............... 1,045,000
4,405,000 South Carolina EDA EDR (Performance Friction Corp.
Project) VRDN 1.86% due 06/01/2012 (a) ............... 4,405,000
5,285,000 South Carolina EDA IDR (Core Materials Corp. Project)
VRDN 1.91% due 04/01/2013 (a) ........................ 5,285,000
3,100,000 South Carolina EDA IDR (Electric City Printing Co.
Project) VRDN 1.96% due 07/01/2012 (a) ............... 3,100,000
4,580,000 South Carolina State Public Service Authority
Revenue (ROCS RR II R 6007) VRDN 1.81%
due 01/01/2022 (a)(b) ................................ 4,580,000
11,100,000 South Carolina Transportation Infrastructure Bank
Revenue Municipal Securities Trust (SGA 116) DDN
1.75% due 10/01/2027 (a)(b) .......................... 11,100,000
5,255,000 South Carolina Transportation Infrastructure Bank
Revenue (Putters -- Series 316) VRDN 1.78%
due 10/01/2027 (a) ................................... 5,255,000
---------------------------------------------------------------------------------------------------------------
South Dakota -- 33,200,000 South Dakota State Health & Educational Facilities
0.3% Authority Revenue (Rapid City Regional Hospital
MBIA) DDN 1.74% due 09/01/2027 (a) ................... 33,200,000
---------------------------------------------------------------------------------------------------------------
Tennessee -- Blount County, Tennessee Public Building Authority
6.6% (Local Government Public Improvement) DDN:
20,000,000 (Series A-1-A) 1.74% due 06/01/2031 (a) .............. 20,000,000
16,070,000 (Series A-1-B) 1.74% due 06/01/2022 (a) .............. 16,070,000
11,500,000 (Series A-1-C) 1.74% due 06/01/2017 (a) .............. 11,500,000
3,165,000 (Series A-1-D) 1.74% due 06/01/2025 (a) .............. 3,165,000
See Notes to Financial Statements.
86
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
Tennessee $ 11,175,000 (Series A-2-A) 1.74% due 06/01/2030 (a) ............... $11,175,000
(continued) 10,000,000 (Series A-2-B) 1.74% due 06/01/2025 (a) ............... 10,000,000
5,000,000 (Series A-2-C) 1.74% due 06/01/2021 (a) ............... 5,000,000
10,000,000 (Series A-2-D) 1.74% due 06/01/2026 (a) ............... 10,000,000
33,100,000 (Series A-3-A) 1.74% due 06/01/2026 (a) ............... 33,100,000
10,000,000 (Series A-5-A) 1.74% due 06/01/2030 (a) ............... 10,000,000
5,700,000 (Series A-5-B) 1.74% due 06/01/2028 (a) ............... 5,700,000
Clarksville, Tennessee Public Building Authority
Revenue DDN:
12,580,000 1.75% due 07/01/2031 (a) .............................. 12,580,000
7,775,000 1.75% due 01/01/2033 (a) .............................. 7,775,000
5,815,000 Greeneville, Tennessee Health & Educational
Facilities Board Hospital Revenue (Floating Rate
Certificates --Series 172) VRDN 1.86%
due 11/15/2008 (a)(b) ................................. 5,815,000
5,855,000 Jackson, Tennessee Energy Authority Gas System
Revenue VRDN 1.76% due 04/01/2027 (a) ................. 5,855,000
4,845,000 Jackson, Tennessee Energy Authority Water System
Revenue VRDN 1.76% due 12/01/2023 (a) ................. 4,845,000
19,775,000 Johnson County, Tennessee Municipal Securities Trust
(SGA 45) VRDN 1.75% due 05/01/2021 (a)(b) ............. 19,775,000
7,080,000 Knox County, Tennessee Health, Educational & Housing
Facilities Board Revenue (Cookeville Regional Project
-- Series A-2) VRDN 1.89% due 10/01/2026 (a) .......... 7,080,000
7,800,000 Knox County, Tennessee Health, Educational & Housing
Facilities Board Revenue (Baptist Hospital System
Project) VRDN 1.89% due 04/01/2027 (a) ................ 7,800,000
8,000,000 Lewisburg, Tennessee IDB (Solid Waste Disposal
Revenue Waste Management Incorporated Project)
VRDN 1.87% due 07/01/2033 (a) ......................... 8,000,000
Memphis, Tennessee Health, Educational & Housing
Facilities Board Revenue (Not-For-Profit M/F
Project) VRDN:
2,040,000 1.79% due 07/01/2032 (a) .............................. 2,040,000
10,000,000 1.79% due 08/01/2032 (a) .............................. 10,000,000
See Notes to Financial Statements.
87
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
Tennessee $ 9,185,000 Montgomery County, Tennessee Public Building
(continued) Authority Revenue (Tennessee County Loan Pool)
VRDN 1.77% due 09/01/2029 (a) ......................... $9,185,000
Montgomery County, Tennessee Public Building Authority
Revenue (Tennessee County Loan Pool) DDN:
38,870,000 1.75% due 04/01/2032 (a) .............................. 38,870,000
94,600,000 1.75% due 07/01/2034 (a) .............................. 94,600,000
8,500,000 Nashville & Davidson County, Tennessee VRDN 1.81%
due 12/07/2004 (a) .................................... 8,500,000
520,000 Nashville & Davidson County, Tennessee IDB
Revenue (Gibson Guitar Project) VRDN 1.85%
due 03/01/2011 (a) .................................... 520,000
9,490,000 Nashville & Davidson County, Tennessee IDB Educational
Facilities Revenue (David Lipscomb University Project)
VRDN 1.77% due 02/01/2023 (a) ......................... 9,490,000
1,995,000 Nashville & Davidson County, Tennessee District Energy
System Revenue (ROCS RR II R 2072) VRDN 1.15%
due 10/01/2022 (a)(b) ................................. 1,995,000
4,195,000 Nashville & Davidson County, Tennessee H & E
Facilities Board Revenue (Floaters Certificates --
Series 533) VRDN 1.81% due 11/15/2016 (a)(b) .......... 4,195,000
4,100,000 Nashville & Davidson County, Tennessee Sports
Authority Revenue (Putters -- Series 543) VRDN
1.80% due 07/01/2012 (a)(b) ........................... 4,100,000
Sevier County, Tennessee Public Building Authority
(Local Government Public Improvement) DDN:
28,185,000 (Series IV-1) 1.74% due 06/01/2023 (a) ................ 28,185,000
6,000,000 (Series IV-2) 1.74% due 06/01/2020 (a) ................ 6,000,000
8,000,000 (Series IV-3) 1.74% due 06/01/2025 (a) ................ 8,000,000
8,365,000 (Series IV-A-2) 1.74% due 06/01/2025 (a) .............. 8,365,000
9,000,000 (Series IV-A-3) 1.74% due 06/01/2020 (a) .............. 9,000,000
20,840,000 (Series IV-B-1) 1.74% due 06/01/2020 (a) .............. 20,840,000
7,000,000 (Series IV-B-3) 1.74% due 06/01/2013 (a) .............. 7,000,000
6,000,000 (Series IV-B-4) 1.74% due 06/01/2025 (a) .............. 6,000,000
10,000,000 (Series IV-B-5) 1.74% due 06/01/2022 (a) .............. 10,000,000
5,910,000 (Series IV-B-6) 1.74% due 06/01/2020 (a) .............. 5,910,000
See Notes to Financial Statements.
88
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=============================================================================================================
Value
Face Amount Issue (Note 1a)
=============================================================================================================
Tennessee $ 5,000,000 (Series IV-B-10) 1.74% due 06/01/2023 (a) .......... $5,000,000
(continued) 11,800,000 (Series IV-D-2) 1.74% due 06/01/2025 (a) ........... 11,800,000
5,765,000 (Series IV-E-2) 1.74% due 06/01/2021 (a) ........... 5,765,000
5,000,000 (Series IV-F-3) 1.74% due 06/01/2021 (a) ........... 5,000,000
10,000,000 (Series IV-G-1) 1.74% due 06/01/2026 (a) ........... 10,000,000
9,100,000 (Series IV-G-2) 1.74% due 06/01/2022 (a) ........... 9,100,000
7,500,000 (Series IV-G-3) 1.74% due 06/01/2022 (a) ........... 7,500,000
9,200,000 (Series IV-H-1) 1.74% due 06/01/2025 (a) ........... 9,200,000
5,050,000 (Series IV-H-2) 1.74% due 06/01/2027 (a) ........... 5,050,000
10,000,000 (Series IV-I-1) 1.74% due 06/01/2032 (a) ........... 10,000,000
5,280,000 (Series IV-I-3) 1.74% due 06/01/2015 (a) ........... 5,280,000
18,000,000 (Series IV-J-1) 1.74% due 06/01/2028 (a) ........... 18,000,000
Shelby County, Tennessee CP:
13,000,000 1.27% due 11/10/2004 ............................... 13,000,000
13,000,000 1.80% due 12/08/2004 ............................... 13,000,000
79,000,000 Shelby County, Tennessee (Series B) FXRDN 1.75%
due 01/10/2005 ..................................... 79,107,937
4,680,000 Shelby County, Tennessee (ROCS RR II R 3023) VRDN
1.81% due 04/01/2020 (a) ........................... 4,680,000
39,185,000 Tennessee Housing & Development Agency S/F
Mortgage Revenue (Series R-9) FXRDN 1.58%
due 01/13/2005 ..................................... 39,185,000
18,845,000 Tennessee Housing & Development Agency S/F
Mortgage Revenue (Series 2004) FXRDN 1.61%
due 08/11/2005 ..................................... 18,845,000
------------------------------------------------------------------------------------------------------------
Texas -- 24,884,000 ABN-AMRO Muni Tops -- Texas A&M University
14.7% Revenue (Series 1999-5) VRDN 1.81%
due 12/06/2006 (a)(b) .............................. 24,884,000
15,750,000 ABN-AMRO Muni Tops -- Houston, Texas Airport
System (Series 1998-15) VRDN 1.87%
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
1.81% due 07/04/2007 (a)(b) ........................ 20,000,000
See Notes to Financial Statements.
89
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
================================================================================================================
Value
Face Amount Issue (Note 1a)
================================================================================================================
Texas $ 9,000,000 ABN-AMRO Muni Tops -- San Antonio, Texas Electric
(continued) & Gas Revenue (Series 1998-22) VRDN 1.81%
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 1.81%
due 07/01/2009 (a)(b) ................................... 9,510,000
Bell County, Texas Health Facilities Development Corp.
Revenue (Scott & White Member Hospital) DDN:
34,135,000 (Series B-1) 1.74% due 08/15/2029 (a) ................... 34,135,000
27,830,000 (Series B-2) 1.74% due 08/15/2029 (a) ................... 27,830,000
14,810,000 (Series 2001-1) 1.74% due 08/15/2031 (a) ................ 14,810,000
80,880,000 (Series 2001-2) 1.74% due 08/15/2031 (a) ................ 80,880,000
4,865,000 Bexar County, Texas (Putters -- Series 537) VRDN
1.80% due 06/15/2011 (a)(b) ............................. 4,865,000
Brazos River Authority Texas PCR VRDN:
34,600,000 (Series D-1) 1.86% due 05/01/2033 (a) ................... 34,600,000
19,770,000 (Series D-2) 1.86% due 05/01/2033 (a) ................... 19,770,000
20,000,000 Brazos River, Texas Harbor Navigator District
(BASF Corp. Project) VRDN 1.87% due
04/01/2037 (a) .......................................... 20,000,000
4,990,000 Cameron County, Texas Housing Finance Corp.
FXRDN 1.87% due 09/01/2005 .............................. 4,990,000
Cameron County, Texas Housing Finance Corp. S/F
Mortgage Revenue (Series A) FXRDN:
465,992 1.79% due 02/04/2005 .................................... 465,992
16,500,000 1.79% due 06/01/2205 .................................... 16,500,000
18,646,043 Central Texas Housing Finance Corp. S/F Mortgage
Revenue (Series A) FXRDN 1.87% due 07/01/2005 ........... 18,646,043
3,800,000 Corpus Christi, Texas Utilities System Revenue (ROCS
RR II R 2149) VRDN 1.81% due 07/15/2024 (a)(b) .......... 3,800,000
8,400,000 Dallas Fort Worth, Texas International Airport
Revenue VRDN 1.85% 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) ...................................... 2,745,000
See Notes to Financial Statements.
90
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================
Texas $ 4,805,000 Dallas Fort Worth, Texas International Airport
(continued) Revenue (Merlots -- Series A-13) VRDN 1.89%
due 11/01/2011 (a)(b) ................................ $ 4,805,000
2,552,500 Denton, Texas School District (Floaters -- Series 951)
VRDN 1.80% due 08/15/2033 (a)(b) ..................... 2,552,500
13,350,000 Dickinson, Texas Independent School District Municipal
Securities Trust Receipts (SGA 94) DDN 1.75%
due 02/15/2028 (a) ................................... 13,350,000
6,000,000 Eagle Mountain & Saginaw, Texas School District
VRDN 1.82% due 08/01/2030 (a) ........................ 6,000,000
12,000,000 Eagle Tax-Exempt Trust -- Texas State Turnpike
Authority (Series 02-6004) VRDN 1.81%
due 08/15/2042 (a)(b) ................................ 12,000,000
5,574,464 El Paso County, Texas Housing Finance Corp. S/F
Mortgage Revenue (Series A) FXRDN 1.59%
due 06/09/2005 ....................................... 5,574,464
25,000,000 Gulf Coast IDA Texas Environment Facilities Revenue
(Citgo Petroleum Corp. Project) DDN 1.79%
due 03/01/2031 (a) ................................... 25,000,000
1,820,000 Gulf Coast Waste Disposal Authority Texas Environment
Facilities Revenue (Waste Corp Texas Project) VRDN
1.84% due 09/01/2022 (a) ............................. 1,820,000
12,500,000 Gulf Coast Waste Disposal Authority Texas Solid Waste
Disposal Revenue (Air Products Project) VRDN
1.87% due 03/01/2035 (a) ............................. 12,500,000
4,900,000 Gulf Coast Waste Disposal Authority Texas Solid Waste
Disposal Revenue (Waste Management -- Series A)
VRDN 1.82% due 04/01/2019 (a) ........................ 4,900,000
34,400,000 Harris County, Texas Health Facilities Development
Corp. Revenue (Texas Medical Center Project) DDN
1.74% due 09/01/2031 (a) ............................. 34,400,000
182,600,000 Harris County, Texas Health Facilities Development
Corp. Revenue (Methodist Hospital) DDN 1.74%
due 12/01/2032 (a) ................................... 182,600,000
See Notes to Financial Statements.
91
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
==============================================================================================================
Value
Face Amount Issue (Note 1a)
==============================================================================================================
Texas $ 4,000,000 Harris County, Texas (Eagle -- Series 2002-6012) GO
(continued) VRDN 1.81% due 08/15/2030 (a) ....................... $4,000,000
84,490,000 Harris County, Texas Health Facilities Development
Corp. Hospital Revenue (Texas Children's Hospital --
Series B-1) VRDN 1.75% due 10/01/2029 (a) ........... 84,490,000
3,900,000 Harris County, Texas IDC Solid Waste Disposal Revenue
(Deer Park Limited Partnership -- Series A) DDN
1.81% due 02/01/2023 (a) ............................ 3,900,000
13,460,000 Houston, Texas (Floaters Trust -- Series L-41) VRDN
1.80% due 06/30/2005 (a)(b) ......................... 13,460,000
6,590,000 Houston, Texas Utilities System Revenue (Series A)
VRDN 1.79% due 05/25/2012 (a) ....................... 6,590,000
10,000,000 Houston, Texas Water & Sewer System Revenue
(Merlots -- Series C-20) VRDN 1.82%
due 12/01/2032 (a)(b) ............................... 10,000,000
18,520,000 Houston, Texas Water & Sewer System Revenue
(Merlots -- Series A-128) VRDN 1.84%
due 12/01/2029 (a)(b) ............................... 18,520,000
6,200,000 Jewett Economic Development Corp. Texas IDR
(Nucor Corp. Project) VRDN 1.85% due
08/01/2038 (a) ...................................... 6,200,000
28,500,000 Keller, Texas Independent School District Municipal
Securities Trust Receipts (SGA 111) DDN 1.75%
due 08/15/2030 (a)(b) ............................... 28,500,000
1,600,000 Longview Texas Industrial Corp. Revenue
(Collins Industries Inc. Project) VRDN 1.84%
due 04/01/2009 (a) .................................. 1,600,000
3,300,000 Mesquite, Texas IDR (Morrison Products) VRDN 1.84%
due 01/10/2010 (a) .................................. 3,300,000
12,680,000 Mesquite, Texas School District VRDN 1.77%
due 08/15/2025 (a) .................................. 12,680,000
11,900,000 Midlothian, Texas IDC PCR (Box -- Crow Cement Co.
Project) VRDN 1.76% due 12/01/2009 (a) .............. 11,900,000
See Notes to Financial Statements.
92
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
===================================================================================================================
Value
Face Amount Issue (Note 1a)
===================================================================================================================
Texas $ 706,000 Montgomery County, Texas IDC Revenue
(continued) (Sawyer Research Products Inc.) VRDN 1.94%
due 02/04/2015 (a) ....................................... $ 706,000
13,460,000 Municipal Securities Trust Certificates -- Austin,
Texas (Class A -- Series 105) DDN 1.75%
due 06/08/2020 (a)(b) .................................... 13,460,000
18,780,000 Municipal Securities Trust Certificates -- Houston,
Texas Water (Class A -- Series 2001-111) DDN
1.75% due 05/07/2019 (a)(b) .............................. 18,780,000
35,735,000 Municipal Securities Trust Certificates--Houston,
Texas Water (Class A -- Series 2001-123) DDN 1.75%
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 1.75%
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 1.75% due 03/08/2017 (a)(b) ......... 9,725,000
4,516,166 Nortex, Texas Housing Finance Corp. S/F Mortgage
Revenue (Series A) FXRDN 1.88% due 01/02/2005 ............ 4,516,166
3,900,000 North Center, Texas Health Facilities Development Corp.
Revenue (Methodist Hospital Dallas -- Series B) DDN
1.74% due 10/01/2015 (a) ................................. 3,900,000
12,000,000 North Center, Texas Health Facilities Development Corp.
Revenue (Methodist Hospital Dallas -- Series 98) CP
1.43% due 12/01/2004 ..................................... 12,000,000
North East, Texas Independent School District VRDN:
6,900,000 (Putters -- Series 390) 1.80% due 02/01/2012 (a)(b) ...... 6,900,000
6,165,000 (Putters -- Series 393) 1.80% due 02/01/2012 (a)(b) ...... 6,165,000
17,500,000 North Texas Higher Educational Authority
(Student Loan -- Series 93 -- A) VRDN 1.78%
due 04/01/2005 (a) ....................................... 17,500,000
See Notes to Financial Statements.
93
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=====================================================================================================================
Value
Face Amount Issue (Note 1a)
=====================================================================================================================
Texas $ 42,100,000 Nueces River, Texas IDA PCR (San Miguel Electric
(continued) (Co-op) CP 1.65% due 11/01/2004 ............................ $42,100,000
6,985,000 Plano, Texas Independent School District (ROCS RR II
R 2106) VRDN 1.81% due 02/15/2018 (a)(b) .................. 6,985,000
15,000,000 Port Arthur, Texas Naval District Revenue (Series B)
VRDN 1.85% due 05/01/2038 (a) ............................. 15,000,000
10,000,000 Port Arthur, Texas Naval District Revenue (Atofina
Project -- Series B) VRDN 1.85% due 05/01/2038 (a) 10,000,000
10,000,000 Port Arthur, Texas Naval District IDC (Air Products &
Chemicals Project) VRDN 1.87% due 04/01/2035 (a) .......... 10,000,000
22,035,000 Port Arthur, Texas Naval District Environmental
Facilities Revenue (Motiva Enterprises Project) VRDN
1.92% due 12/01/2027 (a) .................................. 22,035,000
25,000,000 Port Corpus Christi, Texas Solid Waste Disposal
Revenue (Flint Hills -- Series A) VRDN 2.12%
due 07/01/2029 (a) ........................................ 25,000,000
33,500,000 San Antonio, Texas Educational Facilities Corp. Revenue
VRDN 1.70% due 11/08/2004 (a) ............................. 33,500,000
5,000,000 San Marcos, Texas School District (Merlots --
Series C-23) VRDN 1.70% due 08/01/2029 (a)(b) ............. 5,000,000
10,189,436 Southeast, Texas Housing Finance Corp. S/F Mortgage
Revenue FXRDN 1.82% due 04/01/2005 ........................ 10,189,436
16,155,000 Tarrant County, Texas Health Facilities Development
Corp. Revenue (Cumberland Rest Project) DDN
1.76% due 08/15/2032 (a) .................................. 16,155,000
22,000,000 Texas State College Student Loan FXRDN 1.80%
due 02/01/2009 ............................................ 22,000,000
15,000,000 Texas State Department Housing & Community Affairs
M/F Revenue (Arlington Villas -- Series A) VRDN
1.84% due 12/01/2036 (a) .................................. 15,000,000
3,435,000 Texas State Department Housing & Community Affairs
S/F VRDN 1.89% due 09/01/2028 (a) ......................... 3,435,000
See Notes to Financial Statements.
94
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
========================================================================================================================
Value
Face Amount Issue (Note 1a)
========================================================================================================================
Texas $ 14,000,000 Texas State (Floating Rate Trust Regional -- Series D)
(continued) VRDN 1.80% due 08/31/2005 (a) ................................ $14,000,000
3,585,000 Texas State (ROCS RR II R 4020) VRDN 1.81% due
10/01/2022 (a)(b) ............................................ 3,585,000
325,000,000 Texas State TRAN 3.00% due 08/31/2005 ........................ 328,732,128
30,000,000 Texas State Municipal Power Agency CP 1.75%
due 11/02/2004 ............................................... 30,000,000
11,435,000 Texas State Municipal Securities Trust Receipts (SGA 92)
DDN 1.75% due 08/01/2029 (a)(b) .............................. 11,435,000
Texas State Turnpike Authority Revenue VRDN:
5,120,000 (Putters -- Series 325) 1.83% due 08/15/2027 (a)(b) .......... 5,120,000
3,370,000 (Putters -- Series 421) 1.83% due 08/15/2030 (a)(b) .......... 3,370,000
2,295,000 Texas State Turnpike Authority Revenue (ROCS RR II R
284) VRDN 1.81% due 08/15/2039 (a)(b) ........................ 2,295,000
6,000,000 Texas State Veterans Housing (Fund II -- Series A-2)
VRDN 1.82% due 06/01/2033 (a) ................................ 6,000,000
22,537,983 Travis County, Texas Housing Finance Corp. S/F
Mortgage Revenue FXRDN 1.95% due 05/02/2005 .................. 22,537,983
7,130,000 Trinity River Authority Texas Solid Waste Disposal
Revenue (Community Waste Disposal Project) VRDN
1.84% due 05/01/2021 (a) ..................................... 7,130,000
4,000,000 University of North Texas, University Revenue VRDN
1.82% due 04/15/2034 (a) ..................................... 4,000,000
6,690,000 University of Texas, University Revenue VRDN 1.81%
due 07/01/2033 (a) ........................................... 6,690,000
21,995,000 University of Texas, University Revenue (Series 97)
VRDN 1.80% due 08/15/2019 (a) ................................ 21,995,000
5,645,000 Victoria County, Texas Hospital Revenue (Floaters --
Series 959) VRDN 1.80% due 01/01/2016 (a)(b) ................. 5,645,000
4,875,000 Williamson County, Texas (Putters -- Series 410) VRDN
1.80% due 02/15/2012 (a) ..................................... 4,875,000
--------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
95
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================
Utah -- $ 101,100,000 Emery County, Utah PCR (Pacificorp Projects) DDN
1.6% 1.74% due 11/01/2024 (a) .............................. $101,100,000
3,385,000 Logan City, Utah Revenue (Integrated System Inc. --
Series A) VRDN 1.96% due 06/01/2014 (a) ............... 3,385,000
Utah Housing Corp. S/F Mortgage Revenue VRDN:
14,335,000 (Series 4) 1.80% due 07/01/2034 (a) ................... 14,335,000
14,790,000 (Series F-1) 1.80% due 01/01/2034 (a) ................. 14,790,000
Utah Water Finance Agency Revenue VRDN:
12,100,000 (Series A-4) 1.79% due 07/01/2029 (a) ................. 12,100,000
7,450,000 (Series A-5) 1.82% due 10/01/2027 (a) ................. 7,450,000
13,150,000 (Series A-6) 1.82% due 10/01/2030 (a) ................. 13,150,000
12,000,000 (Series A-8) 1.79% due 07/01/2032 (a) ................. 12,000,000
9,000,000 (Series A-9) 1.79% due 07/01/2034 (a) ................. 9,000,000
- -----------------------------------------------------------------------------------------------------------------
Vermont -- 1,485,000 Vermont EDA IDR (Huber & Suhner -- Series A)
0.0% VRDN 1.85% due 10/01/2016 (a) ......................... 1,485,000
- -----------------------------------------------------------------------------------------------------------------
Virginia -- 7,000,000 Charles City County, Virginia EDA Solid Waste Disposal
0.4% Revenue (Waste Management Inc. Project -- Series A)
VRDN 1.82% due 02/01/2029 (a) ......................... 7,000,000
10,890,000 Fairfax County, Virginia EDA Student Housing Revenue
(George Mason Unified Foundation Incorporated
Project) VRDN 1.77% due 02/01/2029 (a) ................ 10,890,000
3,395,000 Hampton, Virginia IDA Exempt Facilities Revenue
(USA Waste of Virginia Landfills) VRDN 1.86%
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 1.75% due 03/19/2015 (a)(b) ...... 10,000,000
6,000,000 Norfolk, Virginia Redevelopment & Housing Authority
Revenue (Old Dominion University Project -- Series B)
VRDN 1.77% due 08/01/2033 (a) ......................... 6,000,000
11,385,000 Suffolk, Virginia IDA Residential Care Facilities
Revenue (Lake Prince Center Project) VRDN 1.91%
due 10/01/2031 (a) .................................... 11,385,000
- -----------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
96
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=====================================================================================================================
Value
Face Amount Issue (Note 1a)
=====================================================================================================================
Washington -- $ 5,000,000 ABN-AMRO Muni Tops 2001-01 -- King County,
2.2% Washington VRDN 1.81% due 07/01/2006 (a)(b) ................ $5,000,000
3,050,000 Bellevue, Washington (Eagle 2004-1011 -- Series A)
VRDN 1.81% due 12/01/2043 (a)(b) ........................... 3,050,000
5,580,000 Clark County, Washington (Putters -- Series 540)
VRDN 1.80% due 06/01/2012 (a)(b) ........................... 5,580,000
6,575,000 Clark County, Washington Public Utilities District
(Merlots -- Series A -- 03) VRDN 1.84%
due 01/01/2010 (a)(b) ...................................... 6,575,000
26,745,000 Eagle Tax-Exempt Trust -- Port of Seattle, Washington
Passenger Facility Charge (Series 984705) VRDN
1.81% 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 1.81% due 07/01/2011 (a)(b) ............ 14,680,000
33,165,000 Energy Northwest, Washington Electric Revenue (Project
No 3 -- Series D 1) VRDN 1.75% due 07/01/2018 (a) .......... 33,165,000
3,525,000 Grant County, Washington Public Utilities District
No. 002 (Electric Revenue ROCS RR II R 2039)
VRDN 1.81% due 01/01/2019 (a)(b) ........................... 3,525,000
6,270,000 King City, Washington (ROCS RR II R 2119) VRDN
1.70% due 06/01/2021 (a)(b) ................................ 6,270,000
12,200,000 Lynnwood Public Facilities District Revenue CP 1.25%
due 12/01/2004 ............................................. 12,200,000
23,600,000 Municipal Securities Trust Certificate (Washington State
Motor Vehicle fuel -- Class A -- Series 2001-112)
DDN 1.75% due 01/07/2021 (a)(b) ............................ 23,600,000
5,720,000 Port Tacoma, Washington Revenue (Merlots --
Series A-123) VRDN 1.89% due 12/01/2008 (a)(b) ............. 5,720,000
3,355,000 Seattle, Washington Housing Authority Revenue
(Wedgewood Estates Project) VRDN 1.84%
due 09/01/2036 (a) ......................................... 3,355,000
2,420,000 Seattle, Washington Housing Authority Revenue
(Newholly Project -- Phase III) VRDN 1.84%
due 12/01/2034 (a) ......................................... 2,420,000
See Notes to Financial Statements.
97
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
==============================================================================================================
Value
Face Amount Issue (Note 1a)
==============================================================================================================
Washington $ 9,680,000 Seattle, Washington Municipal Light & Power Revenue
(continued) (Municipal Securities Trust -- SGA 85) DDN 1.75%
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 1.75% due
12/01/2024 (a)(b) ................................... 10,000,000
5,235,000 Snohomish County, Transit Infrastructure Bank
Revenue (Putters -- Series 316) VRDN 1.81%
due 12/01/2023 (a)(b) ............................... 5,235,000
8,750,000 Washington State Economic Development Finance
Authority EDR (Mount Ainstar Resort -- Series C)
DDN 1.84% 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 1.82%
due 07/01/2027 (a) .................................. 4,000,000
22,060,000 Washington State Health Care Facilities Authority
Revenue (Catholic Health -- Series B) VRDN 1.79%
due 03/01/2032 (a) .................................. 22,060,000
18,135,000 Washington State Housing Finance Community
Nonprofit Housing Revenue (Kenney Home Project)
VRDN 1.75% due 12/01/2031 (a) ....................... 18,135,000
5,715,000 Washington State Floating Certificate Trust -- Austin
Trust (Series 2002-C) GO VRDN 1.84%
due 07/01/2023 (a)(b) ............................... 5,715,000
15,985,000 Washington State (Floaters -- Series 2000-389) GO
VRDN 1.80% due 07/01/2018 (a)(b) .................... 15,985,000
5,250,000 Washington State (Merlots -- Series A-05) GO
VRDN 1.84% due 01/01/2013 (a)(b) .................... 5,250,000
6,325,000 Washington State (Merlots -- Series A-101) GO
VRDN 1.84% due 07/01/2019 (a)(b) .................... 6,325,000
-------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
98
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
=================================================================================================================
Value
Face Amount Issue (Note 1a)
=================================================================================================================
West Virginia -- $ 2,730,000 Cabell County, West Virginia Building Community
0.1% Revenue (Pressley Ridge School Project) VRDN 1.84%
due 08/01/2022 (a) ..................................... $2,730,000
3,865,000 West Virginia University Revenue (Merlots --
Series A-15) VRDN 1.84% due 04/01/2028 (a)(b) .......... 3,865,000
----------------------------------------------------------------------------------------------------------------
Wisconsin -- 18,985,000 ABN-AMRO Muni Tops 2001-32 -- Wisconsin State
5.9% VRDN 1.81% due 05/01/2022 (a)(b) ....................... 18,985,000
15,000,000 Appleton, Wisconsin Redevelopment Authority Revenue
(Fox Cities Arts Center -- Series B) VRDN 1.87%
due 06/01/2036 (a) ..................................... 15,000,000
1,000,000 Janesville, Wisconsin IDR (Lamson & Session Co.
Project) VRDN 1.92% due 09/01/2007 (a) ................. 1,000,000
41,000,000 Milwaukee, Wisconsin (Floating Rate Trust --
Series L-65) VRDN 1.80% due 09/01/2005 (a)(b) .......... 41,000,000
19,400,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (Cathedral Place Package Facilities Project)
VRDN 1.84% due 05/01/2025 (a) .......................... 19,400,000
4,125,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (Wisconsin Humane Society Inc. Project)
VRDN 1.92% due 03/01/2019 (a) .......................... 4,125,000
15,425,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (Milwaukee YMCA Project) DDN 1.79%
due 07/01/2034 (a) ..................................... 15,425,000
3,075,000 Sturtevant, Wisconsin IDR (Andis Co. Project --
Series A) VRDN 1.90% due 12/01/2016 (a) ................ 3,075,000
6,675,000 Verona, Wisconsin Area School District TRAN 3.00%
due 08/25/2005 ......................................... 6,747,338
2,900,000 Waukesha, Wisconsin Housing Authority Revenue
(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 1.82% due 08/01/2028 (a) ............... 12,745,000
8,000,000 Wisconsin School District (Cash Flow Management
Program Certificate Partnership -- Series A-1)
TRAN 3.00% due 09/20/2005 .............................. 8,091,860
See Notes to Financial Statements.
99
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
===========================================================================================================
Value
Face Amount Issue (Note 1a)
===========================================================================================================
Wisconsin $ 5,000,000 Wisconsin State (Eagle 2004-1009 A) VRDN 1.81%
(continued) due 05/01/2008 (a)(b) ............................ $5,000,000
9,000,000 Wisconsin State (Putters -- Series 531) VRDN 1.80%
due 11/01/2012 (a)(b) ............................ 9,000,000
Wisconsin State CP:
21,560,000 (Series 2000-B) 1.78% due 11/08/2004 ............. 21,560,000
30,000,000 (Series 2000-B) 1.78% due 11/15/2004 ............. 30,000,000
15,000,000 (Series 2000-C) 1.69% due 11/10/2004 ............. 15,000,000
58,063,000 (Series 2000-C) 1.68% due 11/01/2004 ............. 58,063,000
17,300,000 (Series 2002-A) 1.80% due 11/15/2004 ............. 17,300,000
32,950,000 (Series 2004-A) 1.53% due 11/12/2004 ............. 32,950,000
46,615,000 (Series 2004-A) 1.80% due 12/08/2004 ............. 46,615,000
Wisconsin State Petroleum Inspection Fee Revenue
Bonds CP:
30,000,000 1.69% due 11/01/2004 ............................. 30,000,000
50,000,000 1.70% due 11/01/2004 ............................. 50,000,000
30,000,000 1.78% due 11/08/2004 ............................. 30,000,000
16,300,000 1.27% due 11/10/2004 ............................. 16,300,000
16,000,000 1.53% due 11/12/2004 ............................. 16,000,000
25,000,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Agnesian Healthcare Project)
DDN 1.79% due 06/01/2033 (a) ..................... 25,000,000
18,170,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Wisconsin Lutheran College
Project) DDN 1.79% due 06/01/2033 (a) ............ 18,170,000
Wisconsin State Health & Educational Facilities
Authority Revenue (Gunersen Lutheran) DDN:
14,750,000 (Series A) 1.74% due 12/01/2015 (a) .............. 14,750,000
20,970,000 (Series B) 1.74% due 12/01/2029 (a) .............. 20,970,000
9,200,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Wheaton Franciscan Service)
VRDN 1.76% due 08/15/2016 (a) .................... 9,200,000
40,390,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Prohealth Incorporated --
Series B) DDN 1.74% due 08/15/2030 (a) ........... 40,390,000
See Notes to Financial Statements.
100
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
October 31, 2004 (Unaudited)
====================================================================================================================
Value
Face Amount Issue (Note 1a)
====================================================================================================================
Wisconsin $ 18,450,000 Wisconsin State Health & Educational Facilities
(continued) Authority Revenue (SSM Health Care --
Series 98-B) DDN 1.79% due 12/01/2032 (a) ............. $ 18,450,000
7,000,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Lutheran College) VRDN
1.79% due 09/01/2031 (a) .............................. 7,000,000
2,000,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Riverview Hospital) DDN
1.79% due 10/01/2030 (a) .............................. 2,000,000
9,665,000 Wisconsin State Housing & EDA (Home Ownership
Revenue -- Series B) VRDN 1.82%
due 09/01/2034 (a) .................................... 9,665,000
-------------------------------------------------------------------------------------------------------------------
Wyoming -- Laramie County, Wyoming IDR (Cheyenne Light
0.1% Fuel & Power Co.) VRDN:
3,500,000 (Series 97-B) 1.89% due 09/01/2021 (a) ................ 3,500,000
5,000,000 (Series 97-A) 1.84% due 06/01/2024 (a) ................ 5,000,000
-------------------------------------------------------------------------------------------------------------------
Total Investments (Cost $11,701,388,975) -- 99.5% ..... $11,701,388,975
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.5% ................. 59,943,405
-------------------------------------------------------------------------------------------------------------------
Net Assets ............................................ $11,761,332,380
-------------------------------------------------------------------------------------------------------------------
(a) The interest rate is subject to change periodically based on a certain
index. The rates shown are those in effect at October 31, 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 $1,943,696,835 or 16.5% of net assets.
- --------------------------------------------------------------------------------
Portfolio Abbreviations for Merrill Lynch Master Institutional Tax-Exempt Fund
BAN Bond Anticipation Notes GO General Obligation PCR Pollution Control Revenue
CP Commercial Paper IDA Industrial Development Authority RAN Revenue Anticipation Notes
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 TRAN Tax Revenue Anticipation
Revenue Revenue Notes
FXRDN Fixed Rate Demand Notes M/F Multi-Family VRDN Variable Rate Demand Notes
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
101
Master Institutional Tax-Exempt Fund Statement of Assets and Liabilities
October 31, 2004 (Unaudited)
- --------------------------------------------------------------------------------
Assets:
Total investments, at amortized cost and value (Note 1a) ......... $11,701,388,975
Cash ............................................................. 4,350,982
Interest receivable .............................................. 31,503,316
Receivable for investments sold .................................. 24,769,603
---------------
Total assets .................................................. 11,762,012,876
---------------
Liabilities:
Advisory fee payable (Note 2) .................................... 629,731
Accrued expenses ................................................. 50,765
---------------
Total liabilities ............................................. 680,496
---------------
Net Assets applicable to investors' interests .................... $11,761,332,380
===============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals .......... $11,761,332,380
===============
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Statement of Operations
For the Six Months Ended October 31, 2004 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income:
Interest and discount earned ................................. $77,029,386
-----------
Expenses:
Investment advisory fee (Note 2) ............................. 3,002,131
Accounting and custodian services ............................ 122,114
Dividend and transfer agency fee ............................. 26,223
-----------
Total expense ............................................. 3,150,468
-----------
Net investment income ..................................... 73,878,918
Net realized loss from investment transactions ............ (132,039)
-----------
Net Increase in Net Assets Resulting From Operations ......... $73,746,879
===========
See Notes to Financial Statements.
102
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Statements of Changes in Net Assets (Unaudited)
Six Months Year
Ended Ended
October 31, 2004 April 30, 2004
========================================================================================================
Increase in Net Assets:
Operations:
Net investment income ......................................... $ 73,878,918 $ 102,547,036
Net realized gain (loss) from investment transactions ......... (132,039) 160,308
---------------- ----------------
Net increase in net assets resulting from operations .......... 73,746,879 102,707,344
Capital Transactions:
Contributions from feeders .................................... 6,616,127,640 10,929,810,015
Withdrawals from feeders ...................................... (5,953,970,662) (8,194,309,836)
---------------- ----------------
Net increase in net assets from capital transactions .......... 662,156,978 2,735,500,179
---------------- ----------------
Net increase in net assets .................................... 735,903,857 2,838,207,523
Net Assets:
Beginning of period ........................................... 11,025,428,523 8,187,221,000
---------------- ----------------
End of period ................................................. $ 11,761,332,380 $ 11,025,428,523
================ ================
- -------------------------------------------------------------------------------------------------------------
Master Institution Tax-Exempt Fund
Supplementry Data (unaudited)
Six Months Year Ended April 30, For the Period
Ended ----------------- January 14, 2002*
October 31, 2004 2004 2003 to April 30, 2002
=============================================================================================================
Ratio of expenses to average net assets .05%(1) .05% .05% .05%(1)
Ratio of net investment income to
average net assets .................... 1.23%(1) 1.01% 1.36% 1.47%(1)
Net Assets, end of period (000) ........ $11,761,332 $11,025,429 $8,187,221 $4,474,011
(1) On an annualized basis.
* Commencement of Operations.
See Notes to Financial Statements.
103
Master Institutional Money Market Trust
Notes to Financial Statements (Unaudited)
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 of 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 of 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 (the "Funds") invest in U.S.
104
Master Institutional Money Market Trust
Notes to Financial Statements -- Continued (Unaudited)
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, marks to market such securities
daily and, if necessary, receives additional securities to ensure that the
contract is adequately collateralized.
(f) Securities lending -- The Master Premier Institutional Fund and Master
Institutional Fund (the "Funds") 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 Fund 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 it to lend portfolio securities to Merrill
Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML&Co.,
or its affiliates. As of October 31, 2004, the Master Premier Institutional
Fund lent securities with a value of $1,340,000,000 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 October 31, 2004,
MLIM, LLC received $1,697,251 in securities lending agent fees.
All officers and certain trustees of the Trust are affiliated with Merrill
Lynch & Co., Inc.
105
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 President of the MLIM/FAM-advised funds since None
800 Scudders Mill Road and 1999; Chairman (Americas Region) of MLIM from
Plainsboro, NJ 08536 Trustee 2000 to 2002; Executive Vice President of MLIM
Age: 63 and FAM (which terms as used herein include their
corporate predeccessors) from 1983 to 2002;
President of FAM Distributors, Inc. ("FAMD" or the
"Distributor")from 1986 to 2002 and Director
thereof from 1991 to 2002; Executive Vice President
and Director of Princeton Services, Inc. ("Princeton
Services") from 1993 to 2002; President of Princeton
Administrators, L.P. from 1988 to 2002; Director of
Financial Data Services, Inc. from 1985 to 2002.
- -------------------------------------------------------------------------------------------------------------------
* 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 2 years 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. from 1997 to 2002; Chairman
Age: 64 of Wave Hill, Inc. since 1990.
- --------------------------------------------------------------------------------------------------------------------
James T. Flynn Trustee 9 years Chief Financial Officer of J.P. Morgan & None
340 East 72nd StreetNew Co., Inc. from 1990 to 1995 and an
York, NY 10021 employee of J.P. Morgan in various capacities
Age: 64 from 1967 to 1995.
- --------------------------------------------------------------------------------------------------------------------
106
- --------------------------------------------------------------------------------
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 Year Trustee
- --------------------------------------------------------------------------------------------------------------------
W. Carl Kester Trustee 9 years Mizuho Financial Group Professor of Finance; None
Harvard Business School Senior Associate Dean and Chairman of the
Morgan Hall MBA Program of Harvard University Graduate
393 Soldiers Field School of Business Administration since 1999;
Boston, MA 02163 James R. Williston Professor of Business
Age: 52 Administration of Harvard University Graduate
School of Business from 1997 to 1999; MBA
Class of 1977, Professor of Business
Administration of Harvard University Graduate
School of Business Administration from 1981-1997;
Independent Consultant since 1978.
- --------------------------------------------------------------------------------------------------------------------
Karen P. Robards*** Trustee 2 years President of Robards & Company, a financial None
P.O. Box 9095 advisory firm since 1987; formerly an
Princeton, NJ 08543-9095 investment banker with Morgan Stanley for
Age: 54 more then ten years; Director of Enable Medical
Corp. since 1996; Director of CineMuse Inc. from
1996 to 2000; Director of the Cooke Center for
Learning and Development, a not-for-profit
organization since 1987.
- ------------------------------------------------------------------------------------------
** Each Trustee serves until his or her successor is elected and qualified, until December 31 of the year in which
he or she turns 72, or until his or her death, resignation, or removal as provided in the Fund's by-laws or charter
or by statute.
*** Chairman of Audit Committee and Nominating Committee.
- --------------------------------------------------------------------------------------------------------------------
107
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND PORTFOLIO MANAGERS -- Continued
================================================================================
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
Alice A.Pellegrino
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.
- --------------------------------------------------------------------------------
108
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
Shearman & Sterling LLP
599 Lexington Avenue
New York, NY 10022
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.
#42607
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
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 last 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 - Not Applicable to this semi-annual report
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: __________________________
Terry K. Glenn,
President of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: December 20, 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: ___________________________
Terry K. Glenn,
President of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: December 20, 2004
By: _____________________________
William M. Breen,
Chief Financial Officer of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: December 20, 2004