UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5149
811-10631
Name of Fund: Merrill Lynch Funds for Institutions Series
Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
Merrill Lynch Institutional Tax-Exempt Fund
Merrill Lynch Government Fund
Merrill Lynch Treasury Fund
Master Institutional Money Market Trust
Master Premier Institutional Fund
Master Institutional Fund
Master Institutional Tax-Exempt Fund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, 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: 04/30/05
Date of reporting period: 05/01/04 - 04/30/05
Item 1 - Report to Stockholders
[Logo] Merrill Lynch Investment Manager
Annual Report
MERRILL LYNCH FUNDS FOR INSTITUTIONS SERIES
Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
Merrill Lynch Government Fund
Merrill Lynch Treasury Fund
Merrill Lynch Institutional Tax-Exempt Fund
April 30, 2005
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to provide you with this Annual Report for the Merrill
Lynch Funds For Institutions Series.
Economic Environment
For the most part, the economy remained on solid footing throughout the
past 12 months. Gross domestic product (GDP) grew at an annualized rate of 3.3%
in the second quarter of 2004, 4% in the third quarter and 3.8% in the fourth
quarter. An advanced estimate for the first quarter of 2005 placed GDP growth
at a slower-than-expected 3.1%, although that figure was later revised upward
to 3.5%. Still, annualized GDP growth for all of 2004 came in at 4.4%, well
ahead of the 3% growth rate recorded in 2003.
In the past several months, the major themes have centered on inflation
and, in particular, the price of oil. Inflation showed signs of increasing at
both the producer and consumer levels, but still remained fairly subdued.
Nevertheless, the Federal Reserve Board (Fed) continued to target higher
interest rates to combat inflation expectations. The federal funds rate stood
at 2.75% by the end of the period, the result of seven consecutive rate hikes
since June 2004, and was raised once more to 3% on May 3. The Fed maintained
its commitment to a measured monetary tightening program even in the face of
rising oil prices, which many feared could increase inflationary pressures and
threaten the economic growth forecasts at certain points throughout the period.
Nevertheless, the oil price shocks were largely absorbed by the markets.
As short-term interest rates rose in symphony with the Fed rate hikes,
long-term rates remained stubbornly low, producing what Fed Chairman Alan
Greenspan in February described as a "conundrum." The result was a considerable
flattening of the yield curve over the past 12 months, with the two-year
Treasury yield increasing from 2.31% to 3.66%, while the yield on the 10-year
Treasury note declined from 4.53% to 4.21%. Notably, the short end of the yield
curve has remained steep, with a 76-basis-point (0.76%) spread between the
three-month and two-year Treasury at period-end.
Issuance of Treasury securities continued to increase, largely to fund the
significant twin deficits. Notably, the heavy supply continued to be absorbed
by foreign interest in holding U.S. assets, despite the declining value of the
U.S. dollar. The Treasury has remained prudent in its issuance of bills by
adjusting the size of the weekly four-week bill as a cash management tool. In
addition, the government's increased collection of both corporate and
individual payroll taxes -- coincident with improving employment -- has helped
offset the need for additional supply in the short end.
Portfolio Matters
Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
For the 12-month period ended April 30, 2005, Merrill Lynch Premier
Institutional Fund's net yield was 1.77%. The Fund's seven-day net annualized
yield as of April 30, 2005, was 2.63%. The Fund's average portfolio maturity at
April 30, 2005, was 68 days, compared to 60 days at October 31, 2004, and 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 73 days.
1
For the 12-month period ended April 30, 2005, Merrill Lynch Institutional
Fund's net yield was 1.70%. The Fund's seven-day net annualized yield as of
April 30, 2005, was 2.63%. The Fund's average portfolio maturity at April 30,
2005, was 50 days, compared to 54 days at October 31, 2004, and 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 positioning of the Funds enhanced performance for the bulk of the
fiscal year. Throughout the period, our above-average exposure to floating rate
securities allowed the portfolios' yields to increase in lockstep with the
Fed's short-term interest rate hikes. We had the Funds in a barbell position
early in the period, which required us to purchase some securities further out
on the yield curve to balance our exposure at the short end. Although these
securities recently underperformed, this strategy clearly benefited the Funds'
performance early in the period.
Heading into the fiscal year, the Funds had a large overweight position in
floating rate securities (approximately 60% of each portfolio's net assets).
Because their coupons continuously reset, floating rate securities provide
significant protection against the risk of rising interest rates. As a result
of our floating positions, we were able to maintain a more neutral duration
relative to the market, when a rising rate environment typically might call for
a slightly short duration posture. Early in the fiscal year, with the Fed
clearly preparing to begin tightening monetary policy, we tried to keep
approximately 15% to 20% of the Funds' assets in securities with overnight
maturities for liquidity. With the remainder of the portfolio, we generally
focused on the six- and nine-month areas of the yield curve -- sectors we
believed were priced correctly given our view that we would likely see
25-basis-point rate hikes at every Federal Open Market Committee meeting
through the second quarter of 2005. We were not willing to venture any further
out on the yield curve, as we believed there was little value from a
risk/reward standpoint. Conditions in Premier Institutional Fund changed
markedly in the last quarter of the fiscal year. During this time, we were
forced to focus solely on shareholder liquidity as the Fund's assets fell from
$36.9 billion on January 31, 2005, to $18.7 billion at period-end. This
effectively lengthened the Fund's weighted average maturity, which also limited
our ability to invest further out on the yield curve.
We continue to target an average portfolio duration in the 60-day range
for each fund, reflecting our cautiously constructive view that there are
sectors of the yield curve that represent value. Although the federal funds
rate is sure to increase over the near term, we believe that future policy
decisions in the third and fourth quarter of 2005 will be more dependent on the
economic data releases. Several factors appear to be threatening the consumer
and ultimately could threaten sustainable economic growth: Higher interest
rates may curtail the wealth effect generated by housing prices and mortgage
refinancing; job creation has not proved consistent enough to support wage
growth; and oil prices, while possibly inflationary, seem to pose a greater
risk in reducing discretionary spending.
While our strategy for much of the fiscal year called for significant
exposure to variable rate notes, the liquidity needs of the Funds have led us
to reduce our exposure to this sector. We will look to re-establish our
floating rate positions and will focus on securities with rates tied to indexes
such as the fed funds and prime rates that perform best in what could be a
prolonged flat yield curve environment. In our view, there is value in the
six-, nine- and 12-month sectors, as we believe they are fairly priced and
provide extremely attractive yields given the steepness of the curve in the
front end. We believe the federal funds target will be in the 3.5% to 4% range
by year-end, and we may shift to a slightly longer portfolio duration bias
should yields rise in anticipation that the Fed will take a more aggressive
strategy.
2
Merrill Lynch Government Fund
For the 12-month period ended April 30, 2005, Merrill Lynch Government
Fund's net yield was 1.66%. The Fund's seven-day net annualized yield as of
April 30, 2005, was 2.63%. The Fund's average portfolio maturity at April 30,
2005, was 43 days, compared to 40 days at October 31, 2004, and 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.
While the Fund's performance weathered periods of inordinate asset
declines as the yield curve steepened, it improved once our asset base
exhibited signs of stability. During the fiscal year, more than 85% of the
Fund's assets comprised overnight repurchase agreements and floating rate
securities, which were able to adjust quickly to market rates.
Structurally, we employed a barbell strategy throughout the year. This
involved emphasizing the very front end of the market (overnight repurchase
agreements and floating rate securities) for liquidity and as a hedge against
rising interest rates. At the other end of the barbell, we initially purchased
longer-dated securities for yield enhancement and price appreciation. As the
Fed embarked on its "measured" monetary tightening campaign in June 2004,
short-term interest rates began to rise and continued to advance throughout the
Fund's fiscal year. This gave us reason to approach longer-dated securities
with caution, as their market value tends to suffer more in a rising interest
rate environment. As market conditions appeared oversold, we added small
positions of late-2005 maturities at yields attractive to financing levels.
However, much of our focus was on meeting the high demand of investor liquidity
while maintaining a cautious outlook on interest rates and providing a
competitive return. Assets under management fell during the year by nearly 40%,
which reflected higher interest rates and investors' aversion to the debt of
the two government-sponsored entities (GSEs), Fannie Mae and Freddie Mac. The
prices of these issues declined amid concerns about accounting irregularities
and the uncertainty regarding the possibility of increased federal government
oversight of the GSEs.
We maintain our cautious outlook on the fixed income market. The
interesting question centers on when the Fed may become more data-dependent in
determining monetary policy. Consensus expectations at this point are that more
measured interest rate increases are forthcoming until the federal funds rate
reaches a "neutral" level (relative to inflation) in the area of 3.5%-4.0%.
Current economic data suggest that the recent "soft patch" -- highlighted by
the advanced first quarter GDP release of an unexpectedly low 3.1% (revised in
late May to 3.5%) -- may be short-lived and that final first quarter GDP growth
may be revised modestly higher.
On the agency front, we anticipate that any forthcoming legislation will
produce a stronger regulator of the GSEs and limited new supply. As a result,
we believe the agency market will strengthen and quality spreads will narrow.
3
Merrill Lynch Treasury Fund
For the 12-month period ended April 30, 2005, Merrill Lynch Treasury
Fund's net yield was 1.51%. The Fund's seven-day net annualized yield as of
April 30, 2005, was 2.52%. The Fund's average portfolio maturity at April 30,
2005, was 49 days, compared to 45 days at October 31, 2004, and 60 days at
April 30, 2004. During the period, the Fund's average maturity ranged from a
low of 26 days to a high of 60 days. Our goal was to maintain a conservative
strategy, which was reflected in the portfolio's average maturity dipping into
the low 30-day area for extended periods.
Overall, we managed the Fund conservatively in response to a rising
interest rate environment. Early in the period, we utilized the very front end
of the Treasury yield curve for liquidity and longer-dated notes (the one- to
two-year sector) for incremental yield. As it became apparent that the Fed
would shift to a more restrictive monetary policy, we sought to restructure the
Fund by paring longer-dated notes and utilizing a more bullet-structured
portfolio, in which the maturities of our securities are highly concentrated in
one segment of the yield curve. We believed that by utilizing a bullet rather
than a barbell approach, we would be able to reinvest the portfolio's assets
more quickly into securities at current market rates without sacrificing
liquidity. Our focus was to reduce the Fund's average maturity to the low
40-day area. For the most part, we concentrated our investments within the
three-month sector to maintain a strong liquidity base while allowing us to
maintain a yield competitive with that of the market.
By the third quarter of 2004, a shift in the Treasury yield curve caused
by smaller Treasury bill auctions allowed the Fund to prepare for year-end
liquidity needs. That is, the reduced issuance of Treasury bills resulted in
increased demand for these securities and caused the yield curve to steepen.
The effect of the year-end asset growth and diminished bill supply forced the
Fund to invest in shorter maturities at punitive levels, which had taken its
toll on the Fund's performance, particularly in the early months of 2005.
Nevertheless, we resolved to maintain a more conservative stance in the face of
continued rising interest rates. Fund performance improved late in the period,
as we modestly extended the Fund's weighted average maturity in light of
diminished Treasury bill supply and as investors sought Treasuries as a safe
haven.
For the most part, our liquidity base shifted between the four-week and
the two-month sector as supply dictated. We focused on the six-month sector as
the fulcrum of the curve for incremental yield and trading opportunities. Since
the Treasury bill market has a tendency to follow the technical dynamics rather
than the fundamental aspects of the environment, we have been more inclined to
invest in smaller issues, which will ultimately garner stronger trading
opportunities. Treasury notes have offered limited opportunities for the Fund
since most issues trade at or below yields of comparable Treasury bill
maturities.
Looking ahead, we believe the Fund's conservative average life allows us
to be well positioned for the anticipated market environment. The inclination
of the Fed to continually raise rates at a measured pace, coupled with a
projected reductions in the amount of Treasury bill issuance, should result in
a steep yield curve. Despite recent indicators pointing to higher economic
growth, a flight to quality has allowed the market to be temporarily
range-bound. New asset inflows have compelled us to maintain a larger liquidity
base. On the longer end, we still favor the five- to six-month sector as the
prospects of limited Treasury bill issuance looms.
4
Merrill Lynch Institutional Tax-Exempt Fund
For the 12-month period ended April 30, 2005, Merrill Lynch Institutional
Tax-Exempt Fund's net yield was 1.37%. The Fund's seven-day net annualized
yield as of April 30, 2005, was 2.52%. The Fund's average portfolio maturity at
April 30, 2005, was 23 days, compared to 53 days at October 31, 2004, and 48
days at April 30, 2004. During the period, the Fund's average maturity ranged
from a low of 21 days to a high of 59 days.
We began the fiscal year with a more cautious approach to the short-term
municipal market. Strong job growth early in the period, as well as
inflationary concerns, led investors to believe that the Fed would soon end its
accommodative monetary policy. One-year municipal note yields increased,
creating a spread versus variable rate demand notes (VRDN) of over 60 basis
points. Despite the attractiveness of the municipal note yield pick-up, we
limited our purchases of municipal notes to maintain exposure levels that were
close to our iMoneyNet peer group average. The Fed began and continued to
increase the target federal funds rate in 25-basis-point increments seven times
from June 2004 to March 2005. The target rate stood at 2.75% at the end of the
period. Market participants viewed these interest rate increases as a
continuation of the Fed's efforts to bring the federal funds rate to a neutral
level. The one-year London Interbank Offer Rate (LIBOR) rose approximately 230
basis points to the 3.70% range over the period while yields on one-year
municipal notes increased roughly 170 basis points to the 2.80% range.
During this time, we changed our investment strategy to a conservative
approach as we focused on VRDN securities as a primary investment. This
approach allowed the Fund to participate in the yield increases as they
occurred. As demand for VRDN securities increased and their yields became more
volatile, we used tax-exempt commercial paper (TECP) as an alternative to help
balance the Fund's holdings. The TECP helped to stabilize the Fund's yield from
volatile VRDN yield swings without committing to the uncertainty of
longer-dated securities. The reduced participation in municipal notes allowed
the Fund's average life to decline to the 25-day range, which was similar to
our iMoneyNet peer group average. The Fund continued to experience volatile
growth. It began the fiscal year with $11.0 billion in net assets, which grew
to a high of $14.4 billion in mid-February before income-tax-related
redemptions caused assets to decline to $12.6 billion by the end of the period.
An underweight in municipal notes and a higher weighting of VRDN and TECP
securities benefited the Fund's performance relative to its iMoneyNet peer
group during the period. With the Fed embarking on a tightening agenda, the
portfolio has been well positioned to take advantage of higher interest rates
while preserving shareholder principal.
The upcoming period generally is driven by supply and demand and can lead
to a volatile environment for short-term tax-exempt securities. It is widely
anticipated that the Fed will continue to increase short-term interest rates.
In addition, we are in the midst of seasonal income-tax-related redemptions out
of money market funds. The spring and summer are also traditionally
characterized by heavy new issuance of fixed rate notes. We believe
5
the combination of these factors should lead to higher rates over the near
term, which may create an opportunity to purchase securities at higher yields
and lock in a higher rate of accrual for the Fund. Furthermore, the portfolio's
fixed rate notes that mature over the next several months should provide us
with an opportunity to reinvest at higher interest rates. We will continue to
closely monitor the changing market conditions while adjusting our investment
strategy accordingly. We continue to monitor the Fund's credit quality while
looking to offer our shareholders an attractive tax-exempt yield.
We thank you for your investment in the Merrill Lynch Funds For
Institutions Series, and we look forward to serving your investment needs in
the months and years ahead.
Sincerely,
/s/ Robert C. Doll /s/ P. Michael Walsh
Robert C. Doll P. Michael Walsh
President and Trustee Vice President and Portfolio Manager
Merrill Lynch Funds for Institutions Series Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
/s/ Kevin A. Schiatta /s/ John Ng
Kevin A. Schiatta John Ng
Vice President and Portfolio Manager Vice President and Portfolio Manager
Merrill Lynch Institutional Tax-Exempt Fund Merrill Lynch Government Fund
Merrill Lynch Treasury Fund
June 24, 2005
6
================================================================================
Disclosure of Expenses
Shareholders of the Funds may incur the following charges: operating expenses,
including administration fees, and other Fund expenses. The following example
(which is based on a hypothetical investment of $1,000 invested on November 1,
2004 and held through April 30, 2005) is intended to assist shareholders both
in calculating expenses based on an investment in the Funds and in comparing
these expenses with similar costs of investing in other mutual funds.
The first table below provides information about actual account values and
actual expenses. In order to estimate the expenses a shareholder paid during
the period covered by this report, shareholders can divide their account value
by $1,000 and then multiply the result by the number in the first line under
the heading entitled "Expenses Paid During the Period."
The second table below provides information about hypothetical account
values and hypothetical expenses based on the Funds' actual expense ratio and
an assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in the Funds and
other funds, compare the 5% hypothetical example with the 5% hypothetical
examples that appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders
ongoing costs only and do not reflect any transactional expenses, such as sales
charges, redemption fees or exchange fees. Therefore, the second table is
useful in comparing ongoing expenses only, and will not help shareholders
determine the relative total expenses of owning different funds. If these
transactional expenses were included, shareholders expenses would have been
higher.
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value November 1, 2004 to
November 1, 2004 April 30, 2005 April 30, 2005
===================================================================================================================
Actual
===================================================================================================================
Premier Institutional Fund $1,000 $1,011.20 $0.85
- -------------------------------------------------------------------------------------------------------------------
Institutional Fund $1,000 $1,010.80 $1.15
- -------------------------------------------------------------------------------------------------------------------
Government Fund $1,000 $1,010.70 $1.10
- -------------------------------------------------------------------------------------------------------------------
Treasury Fund $1,000 $1,009.90 $1.15
- -------------------------------------------------------------------------------------------------------------------
Institutional Tax-Exempt Fund $1,000 $1,008.50 $1.10
===================================================================================================================
Hypothetical (5% annual return before expenses)**
===================================================================================================================
Premier Institutional Fund $1,000 $1,023.95 $0.85
- -------------------------------------------------------------------------------------------------------------------
Institutional Fund $1,000 $1,023.65 $1.15
- -------------------------------------------------------------------------------------------------------------------
Government Fund $1,000 $1,023.70 $1.10
- -------------------------------------------------------------------------------------------------------------------
Treasury Fund $1,000 $1,023.65 $1.15
- -------------------------------------------------------------------------------------------------------------------
Institutional Tax-Exempt Fund $1,000 $1,023.70 $1.10
- -------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Funds' annualized expense ratio (0.17% for
Premier Institutional Fund, 0.23% for Institutional Fund, 0.22% for
Government Fund, 0.23% for Treasury Fund and 0.22% for Institutional
Tax-Exempt Fund), multiplied by the average account value over the period,
multipled by 181/365 (to reflect the one-half year period shown). Since
Premier Institutional Fund, Institutional Fund and Institutional Tax-Exempt
Fund are each a feeder fund, the expense table examples reflect the
expenses of both the feeder fund and the master fund in which each invests.
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half-year divided by 365.
7
- --------------------------------------------------------------------------------
Merrill Lynch Premier Institutional Fund
Statement of Assets and Liabilities
April 30, 2005
================================================================================
Assets:
Investment in the Master Premier Institutional Fund, at value
(identified cost $18,780,543,736) (Note 1a) ...................................... $18,759,280,150
Prepaid expense ................................................................... 96,572
---------------
Total assets ................................................................... 18,759,376,722
---------------
Liabilities:
Administration fee payable (Note 2) ............................................... 1,560,751
Dividends payable ................................................................. 5,314,690
Accrued expenses .................................................................. 397,574
---------------
Total liabilities .............................................................. 7,273,015
---------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
18,773,367,293 shares of beneficial interest outstanding) ........................ $18,752,103,707
===============
Net Assets Consist of:
Paid-in capital ................................................................... $18,773,367,293
Unrealized depreciation ........................................................... (21,263,586)
---------------
Total ............................................................................. $18,752,103,707
===============
- --------------------------------------------------------------------------------
Merrill Lynch Premier Institutional Fund
Statement of Operations
For the Year Ended April 30, 2005
================================================================================
Investment Income:
Investment income allocated from the Master Premier Institutional Fund ................ $ 668,333,952
Expenses allocated from the Master Premier Institutional Fund ......................... (18,846,163)
------------
Total investment income ............................................................ 649,487,789
------------
Expenses:
Administration fee (Note 2) ........................................................... 36,149,751
Registration fees ..................................................................... 2,811,283
Accounting services ................................................................... 424,502
Insurance ............................................................................. 350,385
Dividend and transfer agency fees ..................................................... 306,486
Legal and audit fees .................................................................. 294,856
Printing and shareholder reports ...................................................... 188,441
Trustees' fees (Note 5) ............................................................... 120,471
Miscellaneous ......................................................................... 162,433
------------
Total expense ...................................................................... 40,808,608
------------
Net investment income .............................................................. 608,679,181
Realized and Unrealized Loss on Investments:
Net realized loss from investment transactions allocated from Master Premier
Institutional Fund ....................................................... $ (8,646)
Net unrealized depreciation of investments ................................ (20,575,587)
------------
Net realized and unrealized loss on investments ................................... (20,584,233)
------------
Net Increase in Net Assets Resulting From Operations ................................. $588,094,948
============
See Notes to Financial Statements.
8
- --------------------------------------------------------------------------------
Merrill Lynch Premier Institutional Fund
Statement of Changes in Net Assets
================================================================================
Year Ended April 30,
--------------------------------------
2005 2004
==========================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ......................................... $ 608,679,181 $ 522,041,220
Net realized gain (loss) from investment transactions ......... (8,646) 3,079,426
Net unrealized depreciation of investments .................... (20,575,587) (28,102,314)
---------------- ---------------
Net increase in net assets resulting from operations .......... 588,094,948 497,018,332
Total declared as dividends to shareholders (Note 4) .......... (608,670,535) (525,120,646)
Capital share transactions (Note 3) ........................... (26,936,030,823) 1,160,152,122
---------------- ---------------
Net increase (decrease) in net assets ......................... (26,956,606,410) 1,132,049,808
Net Assets:
Beginning of year ............................................. 45,708,710,117 44,576,660,309
---------------- ---------------
End of year ................................................... $ 18,752,103,707 $45,708,710,117
================ ===============
- --------------------------------------------------------------------------------
Merrill Lynch Premier Institutional Fund
Financial Highlights
================================================================================
Year Ended April 30,
-----------------------------------------------------------------------------
2005 2004 2003 2002 2001
================================================================================================================================
Net Asset Value, beginning of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ....................... .018 .011 .016 .030 .061
Less Distributions:
Dividends from net investment income ........ (.018) (.011) (.016) (.030) (.061)
Dividends from net realized gain ............ -- --(1) -- -- --
------ ------ ------ ------ ------
Net Asset Value, end of year ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return ................................. 1.78% 1.06% 1.61% 3.00% 6.32%
Ratios/Supplemental Data:
Net Assets, end of year (000) ............... $18,752,104 $45,708,710 $44,576,660 $46,368,190 $27,661,546
Ratio of expenses to average net assets ..... .17% .16% .16% .17% .18%
Ratio of net investment income to average
net assets ................................ 1.68% 1.04% 1.59% 2.82% 6.25%
(1) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
9
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Fund
Statement of Assets and Liabilities
April 30, 2005
================================================================================
Assets:
Investment in the Master Institutional Fund, at value
(identified cost $9,398,842,996) (Note 1a) ....................................... $9,394,898,867
Prepaid expense ................................................................... 98,056
--------------
Total assets ................................................................... 9,394,996,923
--------------
Liabilities:
Administration fee payable (Note 2) ............................................... 1,152,029
Dividends payable ................................................................. 721,148
Accrued expenses .................................................................. 324,376
--------------
Total liabilities .............................................................. 2,197,553
--------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
9,396,743,499 shares of beneficial interest outstanding) ......................... $9,392,799,370
==============
Net Assets Consist of:
Paid-in capital ................................................................... $9,396,743,499
Unrealized depreciation ........................................................... (3,944,129)
--------------
Total ............................................................................. $9,392,799,370
==============
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Fund
Statement of Operations
For the Year Ended April 30, 2005
================================================================================
Investment Income:
Interest and discount allocated from the Master Institutional Fund ................. $201,248,450
Expenses allocated from the Master Institutional Fund .............................. (5,505,773)
------------
Total investment income ......................................................... 195,742,677
------------
Expenses:
Administration fee (Note 2) ........................................................ 15,709,920
Dividend and transfer agency fees .................................................. 1,603,486
Registration fees .................................................................. 919,918
Accounting services ................................................................ 198,092
Insurance .......................................................................... 83,145
Printing and shareholder reports ................................................... 76,559
Legal and audit fees ............................................................... 70,433
Trustees' fees (Note 5) ............................................................ 32,936
Miscellaneous ...................................................................... 76,587
------------
Total expense ................................................................... 18,771,076
------------
Net investment income ........................................................... 176,971,601
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions allocated from Master
Institutional Fund ................................................ $ 80,772
Net unrealized depreciation of investments ......................... (4,167,532)
-----------
Net realized and unrealized loss on investments ................................. (4,086,760)
------------
Net Increase in Net Assets Resulting From Operations ............................... $172,884,841
============
See Notes to Financial Statements.
10
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Fund
Statement of Changes in Net Assets
================================================================================
Year Ended April 30,
-------------------------------------
2005 2004
========================================================================================================
Decrease in Net Assets:
Operations:
Net investment income ........................................ $ 176,971,601 $ 116,226,768
Net realized gain from investment transactions ............... 80,772 580,917
Net unrealized depreciation of investments ................... (4,167,532) (5,844,766)
--------------- ---------------
Net increase in net assets resulting from operations ......... 172,884,841 110,962,919
Total declared as dividends to shareholders (Note 4) ......... (177,052,373) (116,807,685)
Capital share transactions (Note 3) .......................... (1,204,061,810) (1,052,145,990)
--------------- ---------------
Net decrease in net assets ................................... (1,208,229,342) (1,057,990,756)
Net Assets:
Beginning of year ............................................ 10,601,028,712 11,659,019,468
--------------- ---------------
End of year .................................................. $ 9,392,799,370 $10,601,028,712
=============== ===============
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Fund
Financial Highlights
================================================================================
Year Ended April 30,
----------------------------------------------------------------------------
2005 2004 2003 2002 2001
===============================================================================================================================
Net Asset Value, beginning of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ....................... .017 .010 .015 .029 .061
Less Distributions:
Dividends from net investment income ........ (.017) (.010) (.015) (.029) (.061)
Dividends from net realized gain ............ -- --(1) -- -- --
------ ------ ------ ------ ------
Net Asset Value, end of year ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return ................................. 1.72% .97% 1.54% 2.89% 6.25%
Ratios/Supplemental Data:
Net Assets, end of year (000) ............... $9,392,799 $10,601,029 $11,659,019 $12,834,914 $10,815,790
Ratio of expenses to average net assets
(before waiver) ........................... .23% .23% .23% .32% .37%
Ratio of expenses to average net assets
(after waiver) ............................ -- -- -- .23% .24%
Ratio of net investment income to average
net assets (before waiver) ................ 1.69% .96% 1.53% 2.73% 6.01%
Ratio of net investment income to average
net assets (after waiver) ................. -- -- -- 2.82% 6.14%
(1) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
11
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Schedule of Investments
April 30, 2005
================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
=============================================================================================================
U.S.
Government
Agency
Issues -- 15.1%
$ 30,000,000 Fannie Mae ......................... 1.75% 05/23/05 $ 30,000,000
15,000,000 Fannie Mae ......................... 1.45 07/08/05 14,953,125
14,275,000 Fannie Mae ......................... 2.00 10/21/05 14,190,242
15,000,000 Fannie Mae ......................... 2.30 11/14/05 14,915,625
15,000,000 Fannie Mae ......................... 3.00 09/20/06 14,845,312
25,000,000 Federal Home Loan Banks ............ 1.63 06/15/05 25,006,629
25,000,000 Federal Home Loan Banks ............ 1.63 07/29/05 24,906,250
10,000,000 Federal Home Loan Banks ............ 2.00 10/20/05 9,937,500
30,000,000 Federal Home Loan Banks ............ 2.25 12/15/05 29,784,375
17,000,000 Federal Home Loan Banks ............ 3.10 11/08/06 16,830,000
15,000,000 Federal Home Loan Banks ............ 3.25 11/29/06 14,873,438
10,000,000 Federal Home Loan Banks ............ 3.45 01/10/07 9,937,500
7,000,000 Federal Farm Credit Banks .......... 5.85 06/10/05 7,031,254
15,000,000 Freddie Mac ........................ 2.29 10/28/05 14,923,067
10,000,000 Freddie Mac ........................ 2.13 11/15/05 9,934,375
15,000,000 Freddie Mac ........................ 2.14 02/24/06 14,831,504
25,000,000 Freddie Mac ........................ 3.00 11/09/06 24,614,400
25,992,000 Freddie Mac D/N .................... 2.94 09/06/05 25,706,085
25,000,000 Freddie Mac D/N .................... 3.00 10/11/05 24,642,502
50,000,000 Freddie Mac D/N .................... 2.92 10/24/05 49,225,000
20,000,000 Freddie Mac D/N .................... 2.97 11/15/05 19,646,000
25,000,000 Freddie Mac D/N .................... 3.01 11/15/05 24,557,500
25,000,000 Freddie Mac D/N .................... 2.91 12/13/05 24,485,000
50,000,000 Freddie Mac D/N .................... 3.20 12/28/05 48,905,000
- -------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Issues
(Cost $510,676,732) ................ 508,681,683
- -------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
12
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
===========================================================================================================
U.S.
Government
Agency
Issues --
Variable
Rate -- 60.4%
$ 50,000,000 Fannie Mae ........................... 3.01% 07/06/05 $ 49,989,900
500,000,000 Fannie Mae ........................... 2.93 07/29/05 499,981,600
75,000,000 Fannie Mae ........................... 2.95 08/29/05 74,988,218
75,000,000 Fannie Mae ........................... 2.70 02/17/06 74,985,230
100,000,000 Federal Home Loan Banks .............. 2.94 07/26/05 99,995,242
50,000,000 Federal Home Loan Banks .............. 2.77 08/26/05 49,992,760
50,000,000 Federal Home Loan Banks .............. 2.98 03/28/06 49,977,323
75,000,000 Federal Home Loan Banks .............. 2.66 05/10/06 74,957,746
50,000,000 Federal Home Loan Banks .............. 2.73 05/19/06 49,965,979
50,000,000 Federal Home Loan Banks .............. 2.89 08/21/06 49,961,088
75,000,000 Federal Farm Credit Banks ............ 2.76 10/03/05 74,987,246
100,000,000 Federal Farm Credit Banks ............ 2.78 10/27/05 99,980,335
25,000,000 Federal Farm Credit Banks ............ 2.78 12/01/05 24,998,520
25,000,000 Federal Farm Credit Banks ............ 2.79 12/05/05 24,997,503
50,000,000 Federal Farm Credit Banks ............ 2.80 12/05/05 49,996,960
150,000,000 Federal Farm Credit Banks ............ 2.79 01/04/06 149,987,253
28,000,000 Federal Farm Credit Banks ............ 2.77 01/05/06 27,994,315
150,000,000 Federal Farm Credit Banks ............ 2.77 01/27/06 149,977,713
100,000,000 Federal Farm Credit Banks ............ 2.85 02/13/06 99,992,120
75,000,000 Federal Farm Credit Banks ............ 2.79 09/01/06 74,989,170
150,000,000 Freddie Mac .......................... 2.93 09/09/05 150,009,523
33,962,000 Freddie Mac .......................... 2.73 11/07/05 33,964,174
- -----------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Issues --
Variable Rate (Cost $2,036,674,713) .. 2,036,669,918
- -----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
13
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
===================================================================================================================
Repurchase
Agreements**
- -- 24.1% $ 240,000,000 Credit Suisse First Boston LLC,
purchased on 04/29/05,
repurchase price $240,059,000 ............ 2.95% 05/02/05 $ 240,000,000
139,934,000 Goldman Sachs & Company,
purchased on 04/29/05,
repurchase price $139,968,167 ............ 2.93 05/02/05 139,934,000
233,000,000 Lehman Brothers Inc.,
purchased on 04/29/05,
repurchase price $233,057,279 ............ 2.95 05/02/05 233,000,000
100,000,000 Mizuho Securities USA, Inc.,
purchased on 04/29/05,
repurchase price $100,024,583 ............ 2.95 05/02/05 100,000,000
100,000,000 UBS Warburg LLC,
purchased on 04/29/05,
repurchase price $100,024,500 ............ 2.94 05/02/05 100,000,000
- -------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $812,934,000) ...................... 812,934,000
- -------------------------------------------------------------------------------------------------------------------
Total Investments -- 99.6%
(Cost $3,360,285,445) .................... 3,358,285,601
- -------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.4% .... 12,625,991
- -------------------------------------------------------------------------------------------------------------------
Net Assets -- Equivalent to $1.00
Per Share on 3,372,911,436
Shares of Beneficial Interest
Outstanding -- 100.0% .................... $3,370,911,592
===================================================================================================================
Note--Costs for federal income tax purposes are the same as those shown
above. At April 30, 2005, net unrealized depreciation amounted to $1,999,844
and is comprised of $0 in appreciation and $1,999,844 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 at the time of purchase by the Fund.
Other U.S. Government and Agency Issues bear interest at the rates shown,
payable at fixed dates or upon maturity; the rates shown are the rates in
effect at April 30, 2005. 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.
14
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Statement of Assets and Liabilities
April 30, 2005
================================================================================
Assets:
Investments in securities subject to repurchase agreements ........................ $ 812,934,000
Investments in other marketable securities ........................................ 2,545,351,601
--------------
Total investments at value (identified cost $3,360,285,445) (Note 1a) ........................... $3,358,285,601
Cash ............................................................................................... 8,056,261
Interest receivable ................................................................................ 5,964,004
Prepaid expense .................................................................................... 11,693
--------------
Total assets .................................................................................... 3,372,317,559
--------------
Liabilities:
Advisory fee payable (Note 2) ...................................................................... 606,049
Dividends payable .................................................................................. 685,426
Accrued expenses ................................................................................... 114,492
--------------
Total liabilities ............................................................................... 1,405,967
--------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
3,372,911,436 shares of beneficial interest outstanding) .......................................... $3,370,911,592
==============
Net Assets Consist of:
Paid-in capital .................................................................................... $3,372,911,436
Unrealized depreciation ............................................................................ (1,999,844)
--------------
Total .............................................................................................. $3,370,911,592
==============
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Statement of Operations
For the Year Ended April 30, 2005
================================================================================
Investment Income:
Interest and discount earned .......................................... $87,288,902
-----------
Expenses:
Investment advisory fee (Note 2) ....................... $14,953,204
Registration fees ...................................... 370,970
Dividend and transfer agency fees ...................... 271,055
Accounting and custodian services ...................... 220,768
Legal and audit fees ................................... 42,807
Insurance .............................................. 38,850
Printing and shareholder reports ....................... 26,719
Trustees' fees (Note 5) ................................ 15,756
Miscellaneous .......................................... 48,375
-----------
Total expense ....................................... 15,988,504
Waived investment advisory fee (Note 2) ................ (5,242,735) 10,745,769
----------- -----------
Net investment income .............................................. 76,543,133
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ......... 4,501
Net unrealized depreciation of investments ............. (1,520,294)
-----------
Net realized and unrealized loss from investments .................. (1,515,793)
-----------
Net Increase in Net Assets Resulting From Operations .................. $75,027,340
===========
See Notes to Financial Statements.
15
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Statement of Changes in Net Assets
================================================================================
Year Ended April 30,
--------------------------------------
2005 2004
=======================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ........................................ $ 76,543,133 $ 54,036,646
Net realized gain from investment transactions ............... 4,501 212,509
Net unrealized depreciation of investments ................... (1,520,294) (3,326,277)
--------------- --------------
Net increase in net assets resulting from operations ......... 75,027,340 50,922,878
Total declared as dividends to shareholders (Note 4) ......... (76,547,634) (54,249,155)
Capital share transactions (Note 3) .......................... (2,186,601,832) 228,228,885
--------------- --------------
Net increase (decrease) in net assets ........................ (2,188,122,126) 224,902,608
Net Assets:
Beginning of year ............................................ 5,559,033,718 5,334,131,110
--------------- --------------
End of year .................................................. $ 3,370,911,592 $5,559,033,718
=============== ==============
- --------------------------------------------------------------------------------
Merrill Lynch Government Fund
Financial Highlights
================================================================================
Year Ended April 30,
------------------------------------------------------------------------
2005 2004 2003 2002 2001
==========================================================================================================================
Net Asset Value, beginning of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ........................ .017 .009 .015 .028 .060
Less Distributions:
Dividends from net investment income ......... (.017) (.009) (.015) (.028) (.060)
Dividends from net realized gain ............. -- --(1) -- -- --
------ ------ ------ ------ ------
Net Asset Value, end of year .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return .................................. 1.67% .94% 1.52% 2.80% 6.17%
Ratios/Supplemental Data:
Net Assets, end of year (000) ................ $3,370,912 $5,559,034 $5,334,131 $4,780,983 $2,961,793
Ratio of expenses to average net assets
(before waiver) ............................ .33% .34% .33% .35% .36%
Ratio of expenses to average net assets
(after waiver) ............................. .22% .23% .22% .24% .24%
Ratio of net investment income to average
net assets (before waiver) ................. 1.47% .82% 1.39% 2.59% 5.94%
Ratio of net investment income to average
net assets (after waiver) .................. 1.58% .93% 1.50% 2.70% 6.06%
(1) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
16
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Schedule of Investments
April 30, 2005
================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
======================================================================================================
U.S.
Government
Issues -- 99.7%
$ 198,000 U.S. Treasury Bills .......... 2.43% 05/05/05 $ 197,946
27,083,000 U.S. Treasury Bills .......... 2.44 05/05/05 27,075,673
4,200,000 U.S. Treasury Bills .......... 2.47 05/05/05 4,198,850
942,000 U.S. Treasury Bills .......... 2.57 05/05/05 941,731
50,000,000 U.S. Treasury Bills .......... 2.58 05/05/05 49,985,653
50,000,000 U.S. Treasury Bills .......... 2.60 05/05/05 49,985,572
35,000,000 U.S. Treasury Bills .......... 2.57 05/12/05 34,972,489
50,000,000 U.S. Treasury Bills .......... 2.53 05/19/05 49,936,750
50,000,000 U.S. Treasury Bills .......... 2.67 05/19/05 49,933,375
75,000,000 U.S. Treasury Bills .......... 2.69 05/19/05 74,899,125
15,000,000 U.S. Treasury Bills .......... 2.63 05/26/05 14,972,656
1,870,000 U.S. Treasury Bills .......... 2.64 05/26/05 1,866,572
25,000,000 U.S. Treasury Bills .......... 2.66 05/26/05 24,953,819
75,000,000 U.S. Treasury Bills .......... 2.67 05/26/05 74,861,198
200,000,000 U.S. Treasury Bills .......... 2.68 05/26/05 199,627,691
53,000,000 U.S. Treasury Bills .......... 2.66 06/02/05 52,874,684
111,515,000 U.S. Treasury Bills .......... 2.70 06/02/05 111,247,667
50,000,000 U.S. Treasury Bills .......... 2.71 06/02/05 49,879,667
1,891,000 U.S. Treasury Bills .......... 2.64 06/09/05 1,885,592
3,476,000 U.S. Treasury Bills .......... 2.69 06/09/05 3,465,870
56,864,000 U.S. Treasury Bills .......... 2.70 06/09/05 56,697,673
100,000,000 U.S. Treasury Bills .......... 2.71 06/09/05 99,706,823
15,000,000 U.S. Treasury Bills .......... 2.72 06/09/05 14,955,800
2,541,000 U.S. Treasury Bills .......... 2.73 06/09/05 2,533,499
35,000,000 U.S. Treasury Bills .......... 2.74 06/09/05 34,896,108
80,000,000 U.S. Treasury Bills .......... 2.72 06/16/05 79,721,956
5,000,000 U.S. Treasury Bills .......... 2.46 06/23/05 4,981,906
40,000,000 U.S. Treasury Bills .......... 2.66 06/23/05 39,843,650
50,000,000 U.S. Treasury Bills .......... 2.72 06/23/05 49,799,778
13,049,000 U.S. Treasury Bills .......... 2.73 06/23/05 12,996,628
50,000,000 U.S. Treasury Bills .......... 2.74 06/23/05 49,798,306
50,000,000 U.S. Treasury Bills .......... 2.80 06/23/05 49,794,073
50,000,000 U.S. Treasury Bills .......... 2.71 07/07/05 49,751,745
35,000,000 U.S. Treasury Bills .......... 2.74 07/07/05 34,826,221
19,041,000 U.S. Treasury Bills .......... 2.79 07/07/05 18,946,460
See Notes to Financial Statements.
17
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
=======================================================================================================
U.S.
Government
Issues
(continued)
$ 1,595,000 U.S. Treasury Bills ................. 2.80% 07/07/05 $ 1,587,081
4,496,000 U.S. Treasury Bills ................. 2.82 07/07/05 4,473,677
25,000,000 U.S. Treasury Bills ................. 2.84 08/11/05 24,797,852
25,000,000 U.S. Treasury Bills ................. 2.88 08/11/05 24,797,852
25,000,000 U.S. Treasury Bills ................. 2.90 08/11/05 24,797,852
25,000,000 U.S. Treasury Bills ................. 2.91 08/11/05 24,789,833
100,000,000 U.S. Treasury Notes ................. 6.50 08/15/05 101,003,910
1,500,000 U.S. Treasury Notes ................. 1.63 09/30/05 1,491,270
10,000,000 U.S. Treasury Notes ................. 5.75 11/15/05 10,133,980
10,000,000 U.S. Treasury Notes ................. 1.88 01/31/06 9,896,880
25,000,000 U.S. Treasury Notes ................. 1.63 02/28/06 24,651,375
- -------------------------------------------------------------------------------------------------------
Total Investments -- 99.7%
(Cost $1,729,552,209) ............... 1,729,434,768
- -------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.3% 4,831,456
- -------------------------------------------------------------------------------------------------------
Net Assets -- Equivalent to $1.00
Per Share on 1,734,383,665
Shares of Beneficial Interest
Outstanding -- 100.0% ............... $1,734,266,224
=======================================================================================================
Note--Costs for federal income tax purposes are the same as those shown
above. At April 30, 2005, net unrealized depreciation amounted to $117,441
and is comprised of $19,391 in appreciation and $136,832 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.
18
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Statement of Assets and Liabilities
April 30, 2005
================================================================================
Assets:
Total investments at value (identified cost $1,729,552,209) (Note 1a) ............. $1,729,434,768
Cash .............................................................................. 3,770,480
Interest receivable ............................................................... 1,729,072
Prepaid expense ................................................................... 6,193
--------------
Total assets ................................................................... 1,734,940,513
--------------
Liabilities:
Advisory fee payable (Note 2) ..................................................... 270,629
Dividends payable ................................................................. 352,139
Accrued expenses .................................................................. 51,521
--------------
Total liabilities .............................................................. 674,289
--------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
1,734,383,665 shares of beneficial interest outstanding) ......................... $1,734,266,224
==============
Net Assets Consist of:
Paid-in capital ................................................................... $1,734,383,665
Unrealized depreciation ........................................................... (117,441)
--------------
Total ............................................................................. $1,734,266,224
==============
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Statement of Operations
For the Year Ended April 30, 2005
================================================================================
Investment Income:
Interest and discount earned ........................................... $26,027,964
-----------
Expenses:
Investment advisory fee (Note 2) ....................... $ 4,693,693
Registration fees ...................................... 171,804
Dividend and transfer agency fees ...................... 139,015
Accounting and custodian services ...................... 120,469
Legal and audit fees ................................... 15,981
Insurance .............................................. 11,100
Printing and shareholder reports ....................... 6,498
Trustees' fees (Note 5) ................................ 5,248
Miscellaneous .......................................... 31,922
-----------
Total expense ....................................... 5,195,730
Waived investment advisory fee (Note 2) ................ (1,822,897) 3,372,833
----------- -----------
Net investment income ............................................... 22,655,131
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ......... 21,802
Net unrealized depreciation of investments ............. (151,685)
-----------
Net realized and unrealized loss from investments ................... (129,883)
-----------
Net Increase in Net Assets Resulting From Operations ................... $22,525,248
===========
See Notes to Financial Statements.
19
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Statement of Changes in Net Assets
================================================================================
Year Ended April 30,
-----------------------------------
2005 2004
======================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ........................................ $ 22,655,131 $ 10,527,637
Net realized gain from investment transactions ............... 21,802 110,131
Net unrealized depreciation of investments ................... (151,685) (435,562)
-------------- --------------
Net increase in net assets resulting from operations ......... 22,525,248 10,202,206
Total declared as dividends to shareholders (Note 4) ......... (22,676,933) (10,637,768)
Capital share transactions (Note 3) .......................... 390,344,207 (143,476,256)
-------------- --------------
Net increase (decrease) in net assets ........................ 390,192,522 (143,911,818)
Net Assets:
Beginning of year ............................................ 1,344,073,702 1,487,985,520
-------------- --------------
End of year .................................................. $1,734,266,224 $1,344,073,702
============== ==============
- --------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Financial Highlights
================================================================================
Year Ended April 30,
----------------------------------------------------------------------
2005 2004 2003 2002 2001
========================================================================================================================
Net Asset Value, beginning of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ........................ .015 .008 .014 .026 .056
Less Distributions:
Dividends from net investment income ......... (.015) (.008) (.014) (.026) (.056)
------ ------ ------ ------ ------
Net Asset Value, end of year .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return .................................. 1.52% .80% 1.37% 2.60% 5.78%
Ratios/Supplemental Data:
Net Assets, end of year (000) ................ $1,734,266 $1,344,074 $1,487,986 $1,070,857 $1,052,009
Ratio of expenses to average net assets
(before waiver) ............................ .36% .36% .35% .36% .39%
Ratio of expenses to average net assets
(after waiver) ............................. .23% .23% .22% .23% .25%
Ratio of net investment income to average
net assets (before waiver) ................. 1.45% .66% 1.19% 2.37% 5.45%
Ratio of net investment income to average
net assets (after waiver) .................. 1.58% .79% 1.32% 2.50% 5.59%
See Notes to Financial Statements.
20
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
Statement of Assets and Liabilities
April 30, 2005
================================================================================
Assets:
Investment in the Master Institutional Tax-Exempt Fund, at value (Note 1a) ........ $12,621,662,640
Prepaid expense ................................................................... 24,832
---------------
Total assets ................................................................... 12,621,687,472
---------------
Liabilities:
Administration fee payable (Note 2) ............................................... 1,622,002
Dividends payable ................................................................. 1,092,803
Accrued expenses .................................................................. 398,620
---------------
Total liabilities .............................................................. 3,113,425
---------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
12,618,618,796 shares of beneficial interest outstanding) ........................ $12,618,574,047
===============
Net Assets Consist of:
Paid-in capital ................................................................... $12,618,710,959
Accumulated net realized loss ..................................................... (143,919)
Undistributed net investment income ............................................... 7,007
---------------
Total ............................................................................. $12,618,574,047
===============
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
Statement of Operations
For the Year Ended April 30, 2005
================================================================================
Investment Income:
Interest allocated from the Master Institutional Tax-Exempt Fund $205,626,787
Expenses allocated from the Master Institutional Tax-Exempt Fund (6,673,315)
------------
Total investment income .................................... 198,953,472
------------
Expenses:
Administration fee (Note 2) ................................... 19,082,995
Dividend and transfer agency fees ............................. 968,832
Registration fees ............................................. 547,335
Accounting services ........................................... 254,054
Legal and audit fees .......................................... 108,327
Insurance ..................................................... 71,520
Printing and shareholder reports .............................. 61,638
Trustees' fees (Note 5) ....................................... 38,202
Miscellaneous ................................................. 39,378
------------
Total expense .............................................. 21,172,281
------------
Net investment income ...................................... 177,781,191
Net realized loss on investment transactions allocated from the
Master Institutional Tax-Exempt Fund ......................... (143,919)
------------
Net Increase in Net Assets Resulting From Operations .......... $177,637,272
============
See Notes to Financial Statements.
21
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
Statement of Changes in Net Assets
================================================================================
Year Ended April 30,
-------------------------------------
2005 2004
==================================================================================================================
Increase in Net Assets:
Operations:
Net investment income .................................................. $ 177,781,191 $ 85,298,877
Net realized gain (loss) from investment transactions .................. (143,919) 160,307
--------------- ---------------
Net increase in net assets resulting from operations ................... 177,637,272 85,459,184
Total declared as dividends to shareholders (Note 4) ................... (177,952,558) (85,277,561)
Capital share transactions (Note 3) .................................... 1,595,576,820 2,837,610,314
--------------- ---------------
Net increase in net assets ............................................. 1,595,261,534 2,837,791,937
Net Assets:
Beginning of year ...................................................... 11,023,312,513 8,185,520,576
--------------- ---------------
End of year, including undistributed net investment income of $7,007 and
$541 (Note 1f) ........................................................ $12,618,574,047 $11,023,312,513
=============== ===============
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
Financial Highlights
================================================================================
Year Ended April 30,
-------------------------------------------------------------------------
2005 2004 2003 2002 2001
=============================================================================================================================
Net Asset Value, beginning of year ........... $ 1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment Income ....................... .01 .01 .01 .02 .04
Less Distributions:
Dividends from net investment income ........ (.01) (.01) (.01) (.02) (.04)
Dividends from net realized gain ............ --(1) -- -- -- --
----- ----- ----- ----- -----
Net Asset Value, end of year ................. $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Total Return ................................. 1.38% .85% 1.23% 2.01% 3.96%
Ratios/Supplemental Data:
Net Assets, end of year (000) ............... $12,618,574 $11,023,313 $8,185,521 $4,472,803 $3,147,370
Ratio of expenses to average net assets
(before waiver) ........................... .22% .22% .22% .38% .46%
Ratio of expenses to average net assets
(after waiver) ............................ -- -- -- .23% .23%
Ratio of net investment income, to average
net assets (before waiver) ................ 1.40% .84% 1.19% 1.77% 3.61%
Ratio of net investment income, to average
net assets (after waiver) ................. -- -- -- 1.92% 3.84%
(1) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
22
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Notes to Financial Statements
================================================================================
1. Significant Accounting Policies
Merrill Lynch Funds For Institutions Series (the "Trust") is organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 as a diversified, open-end management company. The Trust consists of
five series, Merrill Lynch Premier Institutional Fund, Merrill Lynch
Institutional Fund, Merrill Lynch Government Fund, Merrill Lynch Treasury Fund,
and Merrill Lynch Institutional Tax-Exempt Fund, (collectively, the "Funds").
The Trust's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America, which may
require management to make certain estimates and assumptions at the date of the
financial statements.
The Premier Institutional, Institutional and Institutional Tax-Exempt
Funds (the "Feeder Funds") invest all of their investable assets in interests
in the Master Premier Institutional Fund, Master Institutional Fund, and Master
Institutional Tax-Exempt Fund (the "Master Funds"), respectively, each a
registered investment company having the same investment objective as the
Feeder Funds.
The value of the Feeder Funds' investments in the Master Funds reflect the
Feeder Funds proportionate interest in the Master Funds (approximately 100% for
each of the Feeder Funds at April 30, 2005). 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 investment companies and to
distribute all of its taxable and tax-exempt income to its shareholders.
Therefore, no federal income tax provision is required.
23
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Notes to Financial Statements -- Continued
================================================================================
(c) Security transactions are accounted for on the date the securities are
purchased or sold (the trade date). Realized gains and losses on investments
are computed on the basis of identified cost of 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. Merrill Lynch
Institutional Tax-Exempt Fund, for the year ended April 30, 2005, $5,318 has
been reclassified between undistributed net investment income and accumulated
net realized loss as a result of permanent differences attributable to
amortization methods on fixed income securities. These reclassifications have
no effect on net assets or net asset value per share.
2. Investment Advisory Fees and Other Transactions with Affiliates
FAM, a subsidiary of Merrill Lynch & Co., Inc., provides investment advisory
and corporate administrative services to the Government Fund and Treasury Fund
for a fee, subject to certain limitations, at the annual rates listed below.
Percentage of Average Daily Net Assets
---------------------------------------
Government Fund and
Treasury Fund ......... .35% up to and including $500,000,000
plus .335% over $500,000,000 up to and
including $750,000,000
plus .32% over $750,000,000 up to and
including $1,000,000,000
plus .30% over $1,000,000,000
FAM has agreed to waive a portion of its advisory fees for the Government
and Treasury Funds. The effective fee payable to FAM will be at the annual rate
of 0.20% for each of the Government and Treasury Funds' average daily net
assets. FAM may discontinue waiver of the fee in whole or in part at any time
without notice.
For the year ended April 30, 2005, FAM waived a portion of its fees
amounting to $5,242,735 for the Government Fund and $1,822,897 for the Treasury
Fund.
FAM provides certain administrative services to the Premier Institutional
Fund, Institutional Fund and Institutional Tax-Exempt Fund, for a fee at an
annual rate of 0.10%, 0.15% and 0.15%, respectively, of average daily net
assets. Effective May 13, 2005, FAM agreed to voluntarily waive a portion of
the administrative fee for the Premier Institutional Fund. FAM may discontinue
waiver of the fee in whole or in part at any time without notice.
24
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Notes to Financial Statements -- Continued
================================================================================
All officers and certain trustees of the Trust are affiliated with Merrill
Lynch & Co., Inc.
3. Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
shares of beneficial interest in the Premier Institutional Fund, Institutional
Fund, Government Fund and Treasury Fund ($.01 par value) and Institutional
Tax-Exempt Fund ($.10 par value) of a single class.
Transactions in shares at a constant net asset value of $1.00 per share
were as follows:
Year Year
Ended Ended
April 30, April 30,
Premier Institutional Fund 2005 2004
- -------------------------- ---------------- ----------------
Shares sold ......................... 409,003,732,801 554,226,255,613
Shares issued to shareholders in
reinvestment of dividends ......... 396,687,990 312,747,388
---------------- ----------------
Total ............................. 409,400,420,791 554,539,003,001
Shares redeemed ..................... (436,336,451,614) (553,378,850,879)
---------------- ----------------
Net increase (decrease) ........... (26,936,030,823) 1,160,152,122
================ ================
Year Year
Ended Ended
April 30, April 30,
Institutional Fund 2005 2004
- ------------------ ---------------- ---------------
Shares sold ......................... 64,523,326,797 75,814,508,839
Shares issued to shareholders in
reinvestment of dividends ......... 160,143,204 99,162,602
--------------- ---------------
Total ............................. 64,683,470,001 75,913,671,441
Shares redeemed ..................... (65,887,531,811) (76,965,817,431)
--------------- ---------------
Net decrease ...................... (1,204,061,810) (1,052,145,990)
=============== ===============
Year Year
Ended Ended
April 30, April 30,
Government Fund 2005 2004
- --------------- --------------- ---------------
Shares sold ......................... 26,423,339,614 37,443,523,337
Shares issued to shareholders in
reinvestment of dividends ......... 71,155,209 48,721,944
--------------- ---------------
Total ............................. 26,494,494,823 37,492,245,281
Shares redeemed ..................... (28,681,096,655) (37,264,016,396)
--------------- ---------------
Net increase (decrease) ........... (2,186,601,832) 228,228,885
=============== ===============
Year Year
Ended Ended
April 30, April 30,
Treasury Fund 2005 2004
- ------------- -------------- --------------
Shares sold ......................... 5,147,099,558 4,139,225,382
Shares issued to shareholders in
reinvestment of dividends ......... 20,635,432 10,147,943
-------------- --------------
Total ............................. 5,167,734,990 4,149,373,325
Shares redeemed ..................... (4,777,390,783) (4,292,849,581)
-------------- --------------
Net increase (decrease) ........... 390,344,207 (143,476,256)
============== ==============
Year Year
Ended Ended
Institutional April 30, April 30,
Tax-Exempt Fund 2005 2004
- --------------- --------------- ---------------
Shares sold ......................... 52,247,986,025 37,984,362,489
Shares issued to shareholders in
reinvestment of dividends ......... 162,686,441 78,878,999
--------------- ---------------
Total ............................. 52,410,672,466 38,063,241,488
Shares redeemed ..................... (50,815,095,646) (35,225,631,174)
--------------- ---------------
Net increase ...................... 1,595,576,820 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
25
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Notes to Financial Statements -- Continued
================================================================================
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.
As of April 30, 2005, the components of accumulated earnings on a tax
basis were as follows:
Premier Institutional Fund
--------------------------
Undistributed ordinary income -- net ................. $ --
Undistributed long-term capital gains -- net ......... --
------------
Total undistributed earnings -- net .................. --
Capital loss carryforward ............................ --
Unrealized losses -- net ............................. (21,263,586)
------------
Total accumulated losses -- net ...................... ($21,263,586)
============
Institutional Fund
------------------
Undistributed ordinary income -- net ................. $ --
Undistributed long-term capital gains -- net ......... --
------------
Total undistributed earnings -- net .................. --
Capital loss carryforward ............................ --
Unrealized losses -- net ............................. (3,944,129)
------------
Total accumulated losses -- net ...................... ($3,944,129)
============
Government Fund
---------------
Undistributed ordinary income -- net ................. $ --
Undistributed long-term capital gains -- net ......... --
------------
Total undistributed earnings -- net .................. --
Capital loss carryforward ............................ --
Unrealized losses -- net ............................. (1,999,844)
------------
Total accumulated losses -- net ...................... ($1,999,844)
============
Treasury Fund
-------------
Undistributed ordinary income -- net ................. $ --
Undistributed long-term capital gains -- net ......... --
------------
Total undistributed earnings -- net .................. --
Capital loss carryforward ............................ --
Unrealized losses -- net ............................. (117,441)
------------
Total accumulated losses -- net ...................... ($117,441)
============
Institutional Tax-Exempt Fund
-----------------------------
Undistributed ordinary income -- net ................. $ 7,007
Undistributed long-term capital gains -- net ......... --
------------
Total undistributed earnings -- net .................. 7,007
Capital loss carryforward ............................ (132,039)*
Unrealized losses -- net ............................. --
Post October loss deferral ........................... (11,880)
------------
Total accumulated losses -- net ...................... ($136,912)
============
* On April 30, 2005, the Fund had a net capital loss carryforward of $132,039
which expires in 2013.
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, 2005, the Chairman of the Board receives
an additional annual retainer in the amount of $20,000 and 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.
26
- --------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Merrill Lynch Funds For Institutions Series:
We have audited the accompanying statements of assets and liabilities of
Merrill Lynch Funds For Institutions Series (the "Trust"), consisting of
Merrill Lynch Premier Institutional Fund, Merrill Lynch Institutional Fund,
Merrill Lynch Government Fund, Merrill Lynch Treasury Fund, and Merrill Lynch
Institutional Tax-Exempt Fund (the "Funds"), each a separate series of the
Trust, including the schedules of investments of Merrill Lynch Government Fund
and Merrill Lynch Treasury Fund, as of April 30, 2005, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Trust is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Trust's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of April 30, 2005, by
correspondence with the custodian. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds of Merrill Lynch Funds For Institutions Series as of
April 30, 2005, and the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
June 24, 2005
27
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Important Tax Information (Unaudited)
- --------------------------------------------------------------------------------
Merrill Lynch Premier Institutional Fund
Of the Fund's ordinary income distributions paid during the fiscal year ended
April 30, 2005, 10.6% was attributable to Federal obligations. In calculating
the foregoing percentage, Fund expenses have been allocated on a pro rata
basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
None of the distributions paid by the Fund during the fiscal year were
attributable to taxable capital gains.
Merrill Lynch Institutional Fund
Of the Fund's ordinary income distributions paid during the fiscal year ended
April 30, 2005, 11.8% was attributable to Federal obligations. In calculating
the foregoing percentage, Fund expenses have been allocated on a pro rata
basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
None of the distributions paid by the Fund during the fiscal year were
attributable to taxable capital gains.
Merrill Lynch Government Fund
Of the Fund's ordinary income distributions paid during the fiscal year ended
April 30, 2005, 34.1% was attributable to Federal obligations. In calculating
the foregoing percentage, Fund expenses have been allocated on a pro rata
basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
None of the distributions paid by the Fund during the fiscal year were
attributable to taxable capital gains.
Merrill Lynch Treasury Fund
Of the Fund's ordinary income distributions paid during the fiscal year ended
April 30, 2005, 100.0% was attributable to Federal obligations. In calculating
the foregoing percentage, Fund expenses have been allocated on a pro rata
basis. Additionally, at least 50% of the assets of the Fund was invested in
Federal obligations at the end of each fiscal quarter.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
28
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Important Tax Information (Unaudited) -- Continued
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
All of the net investment income distributions paid by the Fund during the
fiscal year ended April 30, 2005 qualify as tax-exempt interest dividends for
Federal income tax purposes.
For Federal income tax purposes, interest income derived from certain
tax-exempt bonds (know as Private Activity Bonds) is treated as a tax
preference item in computing the alternative minimum tax. In fiscal year 2005,
the Fund attributed 17.50% of its earnings to Private Activity Bonds.
State laws vary as to whether and what percentage of the Fund's dividend
income may be exempt from state income tax, often based upon the percentage of
the Fund's income that is derived from investing in obligations issued within
that state. We recommend that you consult your tax advisor to determine if any
portion of the dividends you received is exempt from state income taxes.
Additionally, the Fund paid a short-term capital gain distribution of
$0.000005802 and a long-term capital gain distribution of $0.000006988 per
share to shareholders of record on December 20, 2004.
29
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments
April 30, 2005
- --------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
U.S. Government $ 122,000,000 U.S. Treasury Notes ................... 1.63% 10/31/05 $ 121,094,516
& Agency 75,000,000 U.S. Treasury Notes ................... 1.50 03/31/06 73,746,068
Issues -- 19.8% 80,000,000 U.S. Treasury Notes ................... 2.50 09/30/06 78,865,600
40,000,000 U.S. Treasury Notes ................... 3.63 04/30/07 40,012,500
150,000,000 Fannie Mae ............................ 2.11 08/26/05 149,484,375
200,000,000 Fannie Mae ............................ 1.88 09/15/05 199,000,000
174,000,000 Fannie Mae ............................ 2.10 10/21/05 173,021,250
69,400,000 Fannie Mae ............................ 2.25 02/28/06 68,684,313
162,000,000 Fannie Mae ............................ 3.00 09/20/06 160,329,375
30,000,000 Fannie Mae ............................ 3.13 05/04/07 29,550,000
100,000,000 Federal Home Loan Banks ............... 1.50 05/13/05 99,999,606
100,000,000 Federal Home Loan Banks ............... 7.00 07/15/05 100,750,000
175,000,000 Federal Home Loan Banks ............... 1.75 08/15/05 174,289,063
100,000,000 Federal Home Loan Banks ............... 3.00 08/15/05 99,968,750
321,500,000 Federal Home Loan Banks ............... 1.50 08/26/05 319,792,031
30,000,000 Federal Home Loan Banks ............... 2.00 07/07/06 29,409,375
75,000,000 Federal Home Loan Banks ............... 3.50 09/08/06 74,742,188
155,000,000 Federal Home Loan Banks ............... 3.25 11/29/06 153,692,188
127,000,000 Federal Home Loan Banks ............... 3.45 01/10/07 126,206,250
75,000,000 Federal Home Loan Banks ............... 3.75 03/07/07 74,671,875
220,000,000 Freddie Mac ........................... 1.50 05/13/05 220,000,000
100,000,000 Freddie Mac ........................... 2.15 10/28/05 99,419,800
125,000,000 Freddie Mac ........................... 2.29 10/28/05 124,358,887
177,700,000 Freddie Mac ........................... 2.41 11/04/05 176,851,305
170,000,000 Freddie Mac ........................... 2.30 11/17/05 168,990,625
87,360,000 Freddie Mac ........................... 2.20 12/01/05 86,753,896
140,000,000 Freddie Mac ........................... 2.35 12/09/05 139,104,980
125,000,000 Freddie Mac ........................... 2.50 12/15/05 123,998,237
37,200,000 Freddie Mac ........................... 2.63 08/17/06 36,678,679
200,000,000 Freddie Mac ........................... 3.01 11/09/06 197,670,600
- --------------------------------------------------------------------------------------------------------------
Total U.S. Government & Agency
Issues (Cost $3,742,677,236) .......... 3,721,136,332
- --------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
30
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
- --------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
U.S. Government $ 610,000,000 Fannie Mae .......................... 2.82% 09/06/05 $ 609,872,696
Agency Issues -- 98,000,000 Federal Farm Credit Banks ........... 2.78 05/02/05 97,999,946
Variable 100,000,000 Federal Farm Credit Banks ........... 2.70 05/19/05 99,999,508
Rate -- 10.0% 116,000,000 Federal Farm Credit Banks ........... 2.94 02/20/08 115,967,442
100,000,000 Federal Farm Credit Banks ........... 2.95 03/20/08 100,000,000
24,000,000 Federal Farm Credit Banks ........... 2.94 06/20/08 23,992,373
100,000,000 Federal Farm Credit Banks ........... 2.91 07/17/08 99,967,898
100,000,000 Federal Farm Credit Banks ........... 2.90 01/14/09 99,928,113
550,000,000 Federal Home Loan Banks ............. 2.73 05/19/06 549,625,768
80,000,000 Freddie Mac ......................... 2.85 02/12/09 79,939,442
- ---------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Issues -- Variable Rate
(Cost $1,877,293,186) ............... 1,877,293,186
- ---------------------------------------------------------------------------------------------------------------------
Certificates of 200,000,000 Washington Mutual Bank, FA .......... 3.00 06/23/05 200,000,000
Deposit -- 1.1%
- ---------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit
(Cost $200,000,000) ................. 200,000,000
- ---------------------------------------------------------------------------------------------------------------------
Certificates of 14,000,000 First Tennessee Bank, N.A. .......... 2.81 11/10/05 14,003,396
Deposit --
Variable
Rate -- 0.1%
- ---------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit --
Variable Rate
(Cost $14,003,396) .................. 14,003,396
- ---------------------------------------------------------------------------------------------------------------------
Euro 205,000,000 Barclays Bank Plc ................... 2.15 06/07/05 205,000,000
Certificates of 200,000,000 Calyon .............................. 2.15 06/07/05 200,000,000
Deposit -- 4.3% 250,000,000 HBOS Treasury Services Plc .......... 2.19 06/09/05 250,000,000
35,000,000 Northern Rock Plc ................... 2.10 06/01/05 35,000,000
125,000,000 Societe Generale .................... 2.10 06/01/05 125,000,000
- ---------------------------------------------------------------------------------------------------------------------
Total Euro Certificates of Deposit
(Cost $815,000,000) ................. 815,000,000
- ---------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
31
- -------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
- --------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
Yankee $ 85,000,000 Fortis Bank, NY .........................2.19% 06/09/05 $ 85,000,000
Certificates of
Deposit -- 0.5%
- ---------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of Deposit
(Cost $85,000,000) ...................... 85,000,000
- ---------------------------------------------------------------------------------------------------------------------
Yankee 40,000,000 Banco Bilbao Vizcaya,
Certificates of Argentaria S.A. .........................2.85 06/01/05 39,998,298
Deposit --
Variable
Rate -- 0.2%
- ---------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of
Deposit -- Variable Rate
(Cost $39,998,298) ...................... 39,998,298
- ---------------------------------------------------------------------------------------------------------------------
Bank Notes -- 50,000,000 National City Bank, Ohio ................2.98 10/31/05 49,998,686
Variable
Rate -- 0.3%
- ---------------------------------------------------------------------------------------------------------------------
Total Bank Notes -- Variable Rate
(Cost $49,998,686) ...................... 49,998,686
- ---------------------------------------------------------------------------------------------------------------------
Corporate 215,000,000 Arlo III Limited, Series 2004 Notes .....3.22 04/28/06 215,000,000
Notes -- 118,000,000 ASIF Global Financing XXX ...............3.01 05/23/06 118,000,932
Variable 84,000,000 Associates Corp. of North America .......3.19 06/27/05 84,000,000
Rate -- 24.3% 300,000,000 Fifth Third Bank ........................2.98 05/23/06 299,965,800
50,000,000 Harwood Street Funding I, LLC ...........3.04 09/20/05 50,000,000
58,000,000 Household Finance Corp. .................2.92 08/18/05 58,017,516
246,000,000 HSBC Finance Inc. .......................3.02 10/28/05 246,009,077
247,000,000 HSBC Finance Inc. .......................3.01 05/24/06 246,968,384
79,000,000 K2 (USA) LLC ............................2.95 12/12/05 78,998,025
140,000,000 K2 (USA) LLC ............................2.99 12/15/05 139,989,794
150,000,000 Lehman Brothers Holdings Inc. ...........3.03 05/22/06 150,052,350
50,000,000 Links Finance LLC .......................2.82 05/13/05 49,999,918
63,000,000 Links Finance LLC .......................2.94 12/14/05 63,001,512
200,000,000 Links Finance LLC .......................2.83 05/02/06 200,005,000
125,500,000 Metropolitan Life Global Funding I ......2.86 05/05/06 125,473,645
See Notes to Financial Statements.
32
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
- --------------------------------------------------------------------------------
====================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
====================================================================================================================
Corporate $ 108,000,000 Metropolitan Life Global Funding I ......2.99% 05/15/06 $ 108,028,177
Notes -- 50,000,000 Morgan Stanley ..........................3.07 08/15/05 50,020,655
Variable 234,000,000 Morgan Stanley ..........................2.90 05/04/06 234,000,000
Rate 280,000,000 Morgan Stanley ..........................2.95 05/15/06 279,996,612
(continued) 197,200,000 Morgan Stanley ..........................3.08 05/26/06 197,238,454
140,000,000 Nationwide Building Society .............3.12 04/28/06 140,020,440
215,000,000 Northern Rock Plc .......................3.00 04/07/06 214,999,334
235,500,000 Pfizer Inc. .............................2.69 11/04/05 235,521,666
50,000,000 Premier Asset Collateralized
Entity LLC ..............................2.93 02/15/06 49,992,050
150,000,000 Premium Asset Trust, Series 2004-I ......2.96 04/14/06 150,009,000
292,600,000 Procter & Gamble Co. ....................2.93 04/10/06 292,599,678
140,000,000 Racers Series 2004-1-MM Trust
Certificates ............................2.99 02/27/06 140,000,000
124,000,000 Westpac Banking Corp. ...................2.99 04/11/06 123,997,904
82,000,000 White Pine Corporation ..................2.91 06/15/05 81,997,415
80,000,000 White Pine Corporation ..................2.97 09/15/05 79,992,000
61,000,000 White Pine Corporation ..................3.01 09/23/05 60,993,650
- -------------------------------------------------------------------------------------------------------------------
Total Corporate Notes --
Variable Rate (Cost $4,564,745,718) ..... 4,564,888,988
- -------------------------------------------------------------------------------------------------------------------
Extendable 300,000,000 Citibank Credit Card Issuance Trust .....3.00 05/31/05 299,250,000
Commercial 29,017,000 Park Granada LLC ........................3.04 05/02/05 29,014,550
Notes -- 1.7%
- -------------------------------------------------------------------------------------------------------------------
Total Extendable Commercial
Notes -- (Cost $328,264,550) ............ 328,264,550
- -------------------------------------------------------------------------------------------------------------------
Master Notes -- 50,000,000 GE Life and Annuity Assurance Co. (a) ...2.93 10/03/05 50,000,000
Variable 50,000,000 GE Life and Annuity Assurance Co. (a) ...2.95 11/01/05 50,000,000
Rate -- 11.0% 100,000,000 Hartford Life Insurance Co. (a) .........2.95 05/02/05 100,000,000
50,000,000 Hartford Life Insurance Co. (a) .........2.94 12/01/05 50,000,000
100,000,000 ING USA Annuity and Life
Insurance Co. (a) .......................3.04 07/18/05 100,000,000
100,000,000 ING USA Annuity and Life
Insurance Co. (a) .......................2.87 08/19/05 100,000,000
See Notes to Financial Statements.
33
- -------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
- --------------------------------------------------------------------------------
====================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
====================================================================================================================
Master Notes -- $ 100,000,000 ING USA Annuity and Life
Variable Rate Insurance Co. (a) .....................3.13% 12/23/05 $ 100,000,000
(continued) 100,000,000 ING USA Annuity and Life
Insurance Co. (a) .....................3.09 01/20/06 100,000,000
40,000,000 Jackson National Life Insurance Co. (a) .2.94 05/02/05 40,000,000
360,000,000 J.P. Morgan Chase & Co. (a) .............2.94 08/19/05 360,000,000
210,000,000 Metropolitan Life Insurance Company (a) 2.93 09/01/05 210,000,000
90,000,000 Monumental Life Insurance Co. (a) .......3.02 11/21/05 90,000,000
60,000,000 Monumental Life Insurance Co. (a) .......3.01 02/15/06 60,000,000
100,000,000 New York Life Insurance Company (a) .....2.91 05/27/05 100,000,000
136,000,000 New York Life Insurance Company (a) .....2.96 10/19/05 136,000,000
140,000,000 New York Life Insurance Company (a) .....2.96 11/17/05 140,000,000
250,000,000 New York Life Insurance Company (a) .....2.96 12/07/05 250,000,000
35,000,000 Travelers Insurance Company (The) (a) ...2.92 03/01/06 35,000,000
- -------------------------------------------------------------------------------------------------------------------
Total Master Notes -- Variable Rate
(Cost $2,071,000,000) ................... 2,071,000,000
- -------------------------------------------------------------------------------------------------------------------
Commercial 50,000,000 Clipper Receivables Company, LLC ........3.00 05/25/05 49,900,000
Paper -- 7.2% 100,000,000 Clipper Receivables Company, LLC ........3.00 05/26/05 99,791,667
30,000,000 Compass Securitization LLC ..............3.00 05/26/05 29,937,500
37,000,000 Countrywide Home Loan ...................3.04 05/02/05 36,996,876
63,000,000 Countrywide Home Loan ...................3.05 05/02/05 62,994,662
100,000,000 Galleon Capital, LLC ....................3.00 05/25/05 99,800,000
50,000,000 International Lease Finance Corp. .......3.06 07/05/05 49,875,000
50,000,000 International Lease Finance Corp. .......3.06 07/07/05 49,709,235
65,174,000 Jupiter Securitization Corp. ............3.00 05/24/05 65,049,083
150,000,000 Lake Constance Funding LLC ..............3.00 05/26/05 149,687,500
151,358,000 Preferred Receivables Funding Corp. .....3.00 05/24/05 151,067,897
135,735,000 Ranger Funding Company, LLC .............3.00 05/20/05 135,520,086
44,783,000 Romulus Funding Corporation .............3.05 07/06/05 44,526,599
250,000,000 Scaldis Capital LLC .....................3.00 05/31/05 249,375,000
50,000,000 Sheffield Receivables Corp. .............3.00 05/25/05 49,900,000
33,000,000 Tango Finance Corporation ...............3.04 07/07/05 32,808,095
- -------------------------------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost $1,356,805,152) ................... 1,356,939,200
- -------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
34
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
- --------------------------------------------------------------------------------
=============================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
=============================================================================================================
Collateralized $ 360,000,000 Blue Heron IX, Class A ...........3.05% 02/22/06 $ 360,000,000
Debt 198,000,000 Permanent Financing Plc ..........2.89 06/10/05 198,000,000
Obligation --
Variable
Rate -- 3.0%
- -------------------------------------------------------------------------------------------------------------
Total Collateralized Debt
Obligation -- Variable Rate
(Cost $558,000,000) .............. 558,000,000
- -------------------------------------------------------------------------------------------------------------
Collateralized 100,000,000 Barclays Capital Inc.,
Advancements purchased on 04/29/05 ..........3.05 05/02/05 100,000,000
- -- 4.0% 300,000,000 Deutsche Bank Securities Inc.,
purchased on 04/29/05 ..........3.06 05/02/05 300,000,000
150,000,000 Goldman Sachs & Company,
purchased on 04/29/05 ..........3.12 05/02/05 150,000,000
200,000,000 J.P. Morgan Securities Inc.,
purchased on 04/29/05 ..........3.12 05/02/05 200,000,000
- -------------------------------------------------------------------------------------------------------------
Total Collateralized Advancements
(Cost $750,000,000) .............. 750,000,000
- -------------------------------------------------------------------------------------------------------------
Time 200,000,000 Societe Generale .................2.95 05/02/05 200,000,000
Deposits -- 10.6% 300,000,000 State Street Bank & Trust ........2.94 05/02/05 300,000,000
734,736,000 SunTrust Bank ....................2.97 05/02/05 734,736,000
150,000,000 Wachovia Bank N.A. ...............2.97 05/02/05 150,000,000
200,000,000 Wachovia Bank N.A. ...............3.00 05/02/05 200,000,000
400,000,000 NRW Bank .........................2.99 05/02/05 400,000,000
- -------------------------------------------------------------------------------------------------------------
Total Time Deposits
(Cost $1,984,736,000) ............ 1,984,736,000
- -------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
35
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
- --------------------------------------------------------------------------------
==============================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
==============================================================================================================
Repurchase $500,000,000 Deutsche Bank Securities Inc.,
Agreements purchased on 04/29/05,
- -- 2.7% repurchase price $500,123,333.......2.96% 05/02/05 $ 500,000,000
- --------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $500,000,000) ................ 500,000,000
- --------------------------------------------------------------------------------------------------------------
Total Investments -- 100.8%
(Cost $18,937,522,222) ............. 18,916,258,636
- --------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other
Assets -- (0.8%) ................... (156,977,433)
- --------------------------------------------------------------------------------------------------------------
Net Assets ......................... $18,759,281,203
==============================================================================================================
Note--Costs for federal income tax purposes are the same as those shown
above. At April 30, 2005, net unrealized depreciation amounted to
$21,263,586 and is comprised of $478,214 in appreciation and $21,741,800 in
depreciation.
* Commercial Paper and some U.S. Government and Agency Issues are traded on a
discount basis; the interest rate shown is the discount rate paid at the
time of purchase by the Fund. Other securities bear interest at the rates
shown, payable at fixed dates or upon maturity; the rates shown are the
rates in effect at April 30, 2005. 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.
2.93%, 10/03/05 ...................................... 09/28/04 $ 50,000,000
2.95%, 11/01/05 ...................................... 11/01/04 $ 50,000,000
Hartford Life Insurance Co.
2.95%, 05/02/05 ...................................... 04/29/04 $100,000,000
2.94%, 12/01/05 ...................................... 11/30/04 $ 50,000,000
ING USA Annuity and Life Insurance Co.
3.04%, 07/18/05 ...................................... 06/17/04 $100,000,000
2.87%, 08/19/05 ...................................... 07/16/04 $100,000,000
3.13%, 12/23/05 ...................................... 11/23/04 $100,000,000
3.09%, 01/20/06 ...................................... 01/20/05 $100,000,000
J.P. Morgan Chase & Co.
2.94%, 08/19/05 ...................................... 11/23/04 $360,000,000
Jackson National Life Insurance Co.
2.94%, 05/02/05 ...................................... 05/03/04 $ 40,000,000
See Notes to Financial Statements.
36
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================
Security Acquisition Date Cost
Metropolitan Life Insurance Co.
2.93%, 09/01/05 ...................... 08/30/04 $210,000,000
Monumental Life Insurance Co.
3.02%, 11/21/05 ...................... 10/22/04 $ 90,000,000
3.01%, 02/15/06 ...................... 02/17/05 $ 60,000,000
New York Life Insurance Co.
2.91%, 05/27/05 ...................... 05/28/04 $100,000,000
2.96%, 10/19/05 ...................... 10/20/04 $136,000,000
2.96%, 11/17/05 ...................... 11/18/04 $140,000,000
2.96%, 12/07/05 ...................... 12/03/04 $250,000,000
Travelers Insurance Co. (The)
2.92%, 03/01/06 ...................... 03/01/05 $ 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 $2,071,000,000 or 11.0% of net assets.
See Notes to Financial Statements.
37
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Statement of Assets and Liabilities
April 30, 2005
=================================================================================================================
Assets:
Investments in securities subject to repurchase agreements ............... $ 500,000,000
Investments in other marketable securities ............................... 18,416,258,636
--------------
Total investments at value (identified cost $18,937,522,222) (Note 1a) .................. $18,916,258,636
Cash ....................................................................................... 23,741,084
Interest receivable ........................................................................ 60,135,499
Receivable for investments sold ............................................................ 40,032,881
---------------
Total assets ............................................................................ 19,040,168,100
---------------
Liabilities:
Advisory fee payable (Note 2) .............................................................. 780,376
Payable for investments purchased .......................................................... 280,002,011
Accrued expenses ........................................................................... 104,510
---------------
Total liabilities ....................................................................... 280,886,897
---------------
Net Assets applicable to investors' interests .............................................. $18,759,281,203
===============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals .................................... $18,780,544,789
Net unrealized depreciation ................................................................ (21,263,586)
---------------
Total ...................................................................................... $18,759,281,203
===============
- --------------------------------------------------------------------------------
Master Premier Institutional Fund
Statement of Operations
For the Year Ended April 30, 2005
=================================================================================================================
Investment Income:
Interest and discount earned ............................................................... $ 667,196,480
Securities lending income (Note 1f) ........................................................ 1,137,492
-------------
Total income ............................................................................ 668,333,972
-------------
Expenses:
Investment advisory fee (Note 2) ........................................................... 18,074,876
Accounting and custodian services .......................................................... 719,909
Dividend and transfer agency fees .......................................................... 51,378
-------------
Total expense ........................................................................... 18,846,163
-------------
Net investment income ................................................................... 649,487,809
Realized and Unrealized Loss on Investments:
Net realized loss from investment transactions ........................... $ (8,646)
Net unrealized depreciation of investments ............................... (20,575,587)
-------------
Net realized and unrealized loss from investments ....................................... (20,584,233)
-------------
Net Increase in Net Assets Resulting From Operations ....................................... $ 628,903,576
=============
See Notes to Financial Statements.
38
- -----------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund Year Ended April 30,
Statement of Changes in Net Assets ------------------------------------------
2005 2004
=======================================================================================================================
Increase (Decrease) in Net Assets:
Operations:
Net investment income ................................................... $ 649,487,809 $ 577,476,179
Net realized gain (loss) from investment transactions ................... (8,646) 3,079,426
Net unrealized depreciation of investments .............................. (20,575,587) (28,102,314)
------------------ ------------------
Net increase in net assets resulting from operations .................... 628,903,576 552,453,291
------------------ ------------------
Capital Transactions:
Contributions from feeders .............................................. 85,810,743,809 111,504,393,757
Withdrawals from feeders ................................................ (113,408,715,449) (110,924,144,307)
------------------ ------------------
Net increase (decrease) in net assets from capital transactions ......... (27,597,971,640) 580,249,450
------------------ ------------------
Net increase (decrease) in net assets ................................... (26,969,068,064) 1,132,702,741
Net Assets:
Beginning of year ....................................................... 45,728,349,267 44,595,646,526
------------------ ------------------
End of year ............................................................. $ 18,759,281,203 $ 45,728,349,267
================== ==================
- ----------------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund Year Ended April 30, For the Period
Supplementary Data --------------------------------------------------- January 14, 2002*
2005 2004 2003 to April 30, 2002
============================================================================================================================
Ratio of expenses to average net assets ......... .05% .05% .05% .05%(1)
Ratio of net investment income to average
net assets ..................................... 1.80% 1.15% 1.70% 1.79%(1)
Net Assets, end of period (000) ................. $18,759,281 $45,728,349 $44,595,647 $46,401,655
(1) On an annualized basis.
* Commencement of Operations.
See Notes to Financial Statements.
39
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments
April 30, 2005
==============================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
==============================================================================================================
U.S. $ 41,000,000 U.S. Treasury Notes ................. 1.63% 10/31/05 $40,695,698
Government 20,000,000 U.S. Treasury Notes ................. 2.50 09/30/06 19,716,400
& Agency 20,000,000 U.S. Treasury Notes ................. 3.63 04/30/07 20,006,250
Issues -- 8.3% 25,000,000 Fannie Mae .......................... 7.00 07/15/05 25,187,500
50,000,000 Fannie Mae .......................... 2.11 08/26/05 49,828,125
50,000,000 Fannie Mae .......................... 1.88 09/15/05 49,750,000
50,000,000 Fannie Mae .......................... 2.10 10/21/05 49,718,750
15,881,000 Fannie Mae .......................... 3.13 05/04/07 15,642,785
10,145,000 Federal Home Loan Banks ............. 1.50 05/13/05 10,144,960
52,800,000 Federal Home Loan Banks ............. 1.75 08/15/05 52,585,500
50,000,000 Federal Home Loan Banks ............. 1.50 08/26/05 49,734,375
25,000,000 Federal Home Loan Banks ............. 3.50 09/08/06 24,914,063
38,400,000 Federal Home Loan Banks ............. 3.13 09/15/06 38,076,000
50,000,000 Federal Home Loan Banks ............. 3.25 11/29/06 49,578,125
35,000,000 Federal Home Loan Banks ............. 3.45 01/10/07 34,781,250
25,000,000 Federal Home Loan Banks ............. 3.75 03/07/07 24,890,625
50,000,000 Freddie Mac ......................... 1.50 05/13/05 50,000,000
25,000,000 Freddie Mac ......................... 2.29 10/28/05 24,871,777
30,000,000 Freddie Mac ......................... 2.30 11/17/05 29,821,875
24,000,000 Freddie Mac ......................... 2.50 11/25/05 23,826,576
30,000,000 Freddie Mac ......................... 2.35 12/09/05 29,808,210
25,000,000 Freddie Mac ......................... 2.50 12/15/05 24,799,648
45,000,000 Freddie Mac ......................... 2.40 07/28/06 44,281,300
- --------------------------------------------------------------------------------------------------------------
Total U.S. Government & Agency
Issues (Cost $786,712,755) .......... 782,659,792
- --------------------------------------------------------------------------------------------------------------
U.S. Government 325,000,000 Fannie Mae .......................... 2.87 08/17/05 324,971,124
Agency Issues -- 500,000,000 Fannie Mae .......................... 2.95 08/29/05 499,921,455
Variable Rate -- 282,500,000 Fannie Mae .......................... 2.99 10/03/05 282,403,667
25.9% 25,000,000 Federal Farm Credit Banks ........... 2.78 05/02/05 24,999,986
50,000,000 Federal Farm Credit Banks ........... 2.85 06/13/05 49,999,412
20,000,000 Federal Farm Credit Banks ........... 2.85 02/12/07 19,996,431
50,000,000 Federal Home Loan Banks ............. 2.78 08/02/05 49,998,085
100,000,000 Federal Home Loan Banks ............. 2.77 10/03/05 99,980,271
398,000,000 Federal Home Loan Banks ............. 2.66 05/10/06 397,775,770
See Notes to Financial Statements.
40
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================
U.S. Government $ 340,000,000 Federal Home Loan Banks ............. 2.73% 05/19/06 $ 339,768,657
Agency Issues -- 323,000,000 Federal Home Loan Banks ............. 2.79 06/01/06 322,756,461
Variable Rate 20,000,000 Freddie Mac ......................... 2.85 02/12/09 19,984,860
(continued)
- ----------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Issues -- Variable Rate
(Cost $2,432,574,243) ............... 2,432,556,179
- ----------------------------------------------------------------------------------------------------------------
Euro 50,000,000 Barclays Bank Plc ................... 2.15 06/07/05 50,000,000
Certificates of 100,000,000 Calyon .............................. 2.15 06/07/05 100,000,000
Deposit -- 5.0% 100,000,000 Deutshe Bank, AG .................... 2.84 05/16/05 100,000,000
25,000,000 HBOS Treasury Services, Plc ......... 2.19 06/09/05 25,000,000
69,000,000 Northern Rock Plc ................... 2.10 06/01/05 69,000,000
125,000,000 Societe Generale .................... 2.10 06/01/05 125,000,000
- ----------------------------------------------------------------------------------------------------------------
Total Euro Certificates of Deposit
(Cost $469,000,000) ................. 469,000,000
- ----------------------------------------------------------------------------------------------------------------
Yankee 35,000,000 Banco Bilbao Vizcaya Argentaria
Certificates of S.A., NY .......................... 3.26 02/08/06 34,914,208
Deposit -- 2.9% 125,000,000 Canadian Imperial Bank of
Commerce, NY ...................... 3.72 04/21/06 125,058,425
60,000,000 Fortis Bank, NY ..................... 2.19 06/09/05 60,000,000
50,000,000 HBOS Treasury Services, Plc ......... 3.83 04/24/06 50,074,865
- ----------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of Deposit
(Cost $269,994,595) ................. 270,047,498
- ----------------------------------------------------------------------------------------------------------------
Yankee 15,000,000 Banco Bilbao Vizcaya Argentaria S.A. 2.85 06/01/05 14,999,362
Certificates of 100,000,000 Canadian Imperial Bank of
Deposit -- Commerce, NY ...................... 3.01 05/15/06 100,000,000
Variable 100,000,000 Rabobank Nederland N.V., NY ......... 2.79 05/03/05 99,999,876
Rate -- 2.3%
- ----------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of
Deposit -- Variable Rate
(Cost $214,999,238) ................. 214,999,238
- ----------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
41
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================
Bank Notes -- $ 150,000,000 Bank of America, N.A. ............... 2.82% 12/15/05 $ 149,999,962
Variable
Rate -- 1.6%
- ----------------------------------------------------------------------------------------------------------------
Total Bank Notes -- Variable Rate
(Cost $149,999,962) ................. 149,999,962
- ----------------------------------------------------------------------------------------------------------------
Corporate 35,000,000 ASIF Global Financing XXX ........... 3.01 05/23/06 35,000,277
Notes -- 50,000,000 Associates Corp. of North America ... 3.19 06/27/05 50,000,000
Variable 122,500,000 Goldman Sachs Group, Inc. ........... 2.94 05/15/06 122,512,128
Rate -- 6.7% 68,000,000 HSBC Financing Inc. ................. 3.02 10/28/05 68,002,509
37,500,000 Metropolitan Life Global Funding I .. 2.86 05/05/06 37,492,125
52,000,000 Morgan Stanley ...................... 2.90 05/04/06 52,000,000
30,000,000 Morgan Stanley ...................... 2.95 05/15/06 29,999,637
45,500,000 Morgan Stanley ...................... 3.08 05/26/06 45,508,873
31,500,000 Nationwide Building Society ......... 3.12 04/28/06 31,504,599
56,000,000 Northern Rock Plc ................... 3.00 04/07/06 55,999,826
77,000,000 Procter & Gamble Company ............ 2.93 04/10/06 77,000,000
25,000,000 Westpac Banking Corp. ............... 2.99 04/11/06 24,999,578
- ----------------------------------------------------------------------------------------------------------------
Total Corporate Notes --
Variable Rate (Cost $629,998,290) ... 630,019,552
- ----------------------------------------------------------------------------------------------------------------
Medium Term 100,000,000 General Electric Capital Corp. ...... 3.07 05/17/06 100,109,600
Notes -- 91,000,000 HSBC Finance Inc. ................... 3.01 05/24/06 90,988,352
Variable 28,000,000 Metropolitan Life Global Funding I .. 2.99 05/15/06 28,007,305
Rate -- 4.1% 62,700,000 Pfizer, Inc. ........................ 2.69 11/04/05 62,705,768
100,000,000 Sigma Finance Inc. .................. 2.92 08/16/05 100,001,690
- ----------------------------------------------------------------------------------------------------------------
Total Medium Term Notes --
Variable Rate (Cost $381,689,740) ... 381,812,715
- ----------------------------------------------------------------------------------------------------------------
Master Notes -- 45,000,000 GE Life and Annuity Assurance Co. (a) 2.93 10/03/05 45,000,000
Variable 30,000,000 ING USA Annuity and Life
Rate -- 4.5% Insurance Co. (a) ................. 3.04 07/18/05 30,000,000
100,000,000 ING USA Annuity and Life
Insurance Co. (a) ................. 2.87 08/19/05 100,000,000
40,000,000 Monumental Life Insurance Co. (a) ... 3.01 02/15/06 40,000,000
See Notes to Financial Statements.
42
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================
Master Notes -- $ 40,000,000 Monumental Life Insurance Co. (a) ... 3.02% 05/22/06 $ 40,000,000
Variable 45,000,000 New York Life Insurance Company (a) . 2.91 05/27/05 45,000,000
Rate 35,000,000 New York Life Insurance Company (a) . 2.96 10/19/05 35,000,000
(continued) 40,000,000 New York Life Insurance Company (a) . 2.96 11/17/05 40,000,000
50,000,000 United of Omaha Life Insurance
Company (a) ....................... 3.14 04/27/06 50,000,000
- ----------------------------------------------------------------------------------------------------------------
Total Master Notes -- Variable Rate
(Cost $425,000,000) ................. 425,000,000
- ----------------------------------------------------------------------------------------------------------------
Commercial 200,000,000 Amsterdam Funding Corp. ............. 2.94 05/20/05 199,689,667
Paper -- 17.3% 100,000,000 Aspen Funding Corporation ........... 3.04 07/07/05 99,418,470
60,000,000 CC (USA) Inc., (Centauri) ........... 3.07 07/15/05 59,607,672
66,192,000 Chariot Funding LLC ................. 2.93 05/16/05 66,111,191
100,000,000 Clipper Receivables Company, LLC .... 2.93 05/17/05 99,869,778
50,000,000 Clipper Receivables Company, LLC .... 3.11 07/20/05 49,650,240
34,600,000 Compass Securitization LLC .......... 3.00 05/25/05 34,530,800
60,000,000 FCAR Owner Trust .................... 3.02 07/05/05 59,661,858
47,210,000 Jupiter Securitization Corp. ........ 2.83 05/09/05 47,180,310
75,189,000 Jupiter Securitization Corp. ........ 2.87 05/13/05 75,117,069
125,000,000 Kitty Hawk Funding Corp. ............ 2.91 05/16/05 124,848,438
75,000,000 Newport Funding Corporation ......... 3.06 07/14/05 74,516,407
150,000,000 Ranger Funding Co., LLC ............. 2.93 05/17/05 149,804,667
300,000,000 Sheffield Receivables Corp. ......... 2.96 05/23/05 299,457,333
60,000,000 Sigma Finance Inc. .................. 2.87 05/12/05 59,947,383
100,000,000 Spintab AB .......................... 3.00 06/30/05 99,481,110
31,167,000 Yorktown Capital LLC ................ 2.87 05/11/05 31,142,153
- ----------------------------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost $1,630,104,788) ............... 1,630,034,546
- ----------------------------------------------------------------------------------------------------------------
Time 400,000,000 NRW Bank, Cayman .................... 2.99 05/02/05 400,000,000
Deposits -- 7.4% 295,107,000 SunTrust Bank, Cayman ............... 2.97 05/02/05 295,107,000
- ----------------------------------------------------------------------------------------------------------------
Total Time Deposits
(Cost $695,107,000) ................. 695,107,000
- ----------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
43
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================================================
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
================================================================================================================
Collateralized $ 91,000,000 Blue Heron IX, Class A .............. 3.05% 02/22/06 $ 91,000,000
Debt 55,000,000 Permanent Financing (No. 6) Plc ..... 2.89 06/10/05 55,000,000
Obligation -- 73,000,000 Permanent Financing (No. 7) Plc ..... 2.87 03/10/06 73,000,000
Variable
Rate -- 2.3%
- ----------------------------------------------------------------------------------------------------------------
Total Collateralized Debt
Obligation -- Variable Rate
(Cost $219,000,000) ................. 219,000,000
- ----------------------------------------------------------------------------------------------------------------
Collateralized 100,000,000 Barclays Capital Inc.,
Advancements -- purchased on 04/29/05 ............... 3.05 05/02/05 100,000,000
5.1% 175,000,000 Citigroup Global Markets Inc.,
purchased on 04/29/05 ............... 3.10 05/02/05 175,000,000
100,000,000 Goldman Sachs & Company,
purchased on 04/29/05 ............... 3.07 05/02/05 100,000,000
100,000,000 Goldman Sachs & Company,
purchased on 04/29/05 ............... 3.12 05/02/05 100,000,000
- ----------------------------------------------------------------------------------------------------------------
Total Collateralized Advancements
(Cost $475,000,000) ................. 475,000,000
- ----------------------------------------------------------------------------------------------------------------
Repurchase 600,000,000 Deutsche Bank Securities Inc.,
Agreements purchased on 04/29/05,
- -- 6.4% repurchase price $600,148,000 ..... 2.96 05/02/05 600,000,000
- ----------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $600,000,000) ................. 600,000,000
- ----------------------------------------------------------------------------------------------------------------
Total Investments -- 99.8%
(Cost $9,379,180,611) ............... 9,375,236,482
- ----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.2% 19,663,432
- ----------------------------------------------------------------------------------------------------------------
Net Assets .......................... $9,394,899,914
================================================================================================================
Note--Costs for federal income tax purposes are the same as those shown
above. At April 30, 2005, net unrealized depreciation amounted to
$3,944,129 and is comprised of $334,889 in appreciation and $4,279,018 in
depreciation.
* Commercial Paper and some U.S. Government and Agency Issues are traded on a
discount basis; the interest rate shown is the discount rate paid at the
time of purchase by the Fund. Other securities bear interest at the rates
shown, payable at fixed dates or upon maturity; the rates shown are the
rates in effect at April 30, 2005. 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.
44
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2005
================================================================================
(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.
2.93%, 10/03/05 ...................................... 09/28/04 $ 45,000,000
ING USA Annuity and Life Insurance Co.
3.04%, 07/18/05 ...................................... 06/17/04 $ 30,000,000
2.87%, 08/19/05 ...................................... 07/16/04 $100,000,000
Monumental Life Insurance Co.
3.01%, 02/15/06 ...................................... 02/17/05 $ 40,000,000
3.02%, 05/22/06 ...................................... 04/22/05 $ 40,000,000
New York Life Insurance Co.
2.91%, 05/27/05 ...................................... 05/28/04 $ 45,000,000
2.96%, 10/19/05 ...................................... 10/20/04 $ 35,000,000
2.96%, 11/17/05 ...................................... 11/18/04 $ 40,000,000
United of Omaha Life Insurance Co.
3.14%, 04/27/06 ...................................... 04/27/05 $ 50,000,000
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 $425,000,000 or 4.5% of net assets.
See Notes to Financial Statements.
45
- --------------------------------------------------------------------------------
Master Institutional Fund
Statement of Assets and Liabilities
April 30, 2005
===============================================================================================================
Assets:
Investments in securities subject to repurchase agreements ............... $ 600,000,000
Investments in other marketable securities ............................... 8,775,236,482
-------------
Total investments, at value (identified cost $9,379,180,611) (Note 1a) ................. $9,375,236,482
Cash ...................................................................................... 15,701,778
Interest receivable ....................................................................... 24,384,259
Receivable for investments sold ........................................................... 20,016,440
--------------
Total assets ........................................................................... 9,435,338,959
--------------
Liabilities:
Advisory fee payable (Note 2) ............................................................. 384,010
Payable for investments purchased ......................................................... 40,011,005
Accrued expenses .......................................................................... 44,030
--------------
Total liabilities ...................................................................... 40,439,045
--------------
Net Assets applicable to investors' interests ............................................. $9,394,899,914
==============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals ................................... $9,398,844,043
Net unrealized depreciation ............................................................... (3,944,129)
--------------
Total ..................................................................................... $9,394,899,914
==============
- ---------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Master Institutional Fund
Statement of Operations
For the Year Ended April 30, 2005
- --------------------------------------------------------------------------------
===============================================================================================================
Investment Income:
Interest and discount earned .............................................................. $ 201,248,469
--------------
Expenses:
Investment advisory fee (Note 2) .......................................................... 5,236,640
Accounting and custodian services ......................................................... 217,755
Dividend and transfer agency fees ......................................................... 51,378
--------------
Total expense .......................................................................... 5,505,773
--------------
Net investment income .................................................................. 195,742,696
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ........................... $ 80,772
Net unrealized depreciation of investments ............................... (4,167,531)
-------------
Net realized and unrealized loss from investments ...................................... (4,086,759)
--------------
Net Increase in Net Assets Resulting From Operations ...................................... $ 191,655,937
==============
See Notes to Financial Statements.
46
- -----------------------------------------------------------------------------------------------------------------------
Master Institutional Fund Year Ended April 30,
Statement of Changes in Net Assets ------------------------------------------
2005 2004
=======================================================================================================================
Decrease in Net Assets:
Operations:
Net investment income ................................................... $ 195,742,696 $ 137,798,021
Net realized gain from investment transactions .......................... 80,772 580,917
Net unrealized depreciation of investments .............................. (4,167,531) (5,844,767)
------------------ ------------------
Net increase in net assets resulting from operations .................... 191,655,937 132,534,171
Capital Transactions:
Contributions from feeders .............................................. 13,225,527,857 19,475,397,343
Withdrawals from feeders ................................................ (14,625,457,769) (20,666,984,788)
------------------ ------------------
Net decrease in net assets from capital transactions .................... (1,399,929,912) (1,191,587,445)
------------------ ------------------
Net decrease in net assets .............................................. (1,208,273,975) (1,059,053,274)
Net Assets:
Beginning of year ....................................................... 10,603,173,889 11,662,227,163
------------------ ------------------
End of year ............................................................. $ 9,394,899,914 $ 10,603,173,889
================== ==================
- -----------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Master Institutional Fund Year Ended April 30, For the Period
Supplementary Data ------------------------------------------------- January 14, 2002*
2005 2004 2003 to April 30, 2002
===========================================================================================================================
Ratio of expenses to average net assets ......... .05% .05% .05% .05%(1)
Ratio of net investment income to average
net assets ..................................... 1.87% 1.14% 1.71% 1.81%(1)
Net Assets, end of period (000) ................. $ 9,394,900 $ 10,603,174 $ 11,662,227 $ 12,840,286
(1) On an annualized basis.
* Commencement of Operations.
See Notes to Financial Statements.
47
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Alabama -- $ 7,500,000 Athens-Limestone County Health Care Authority
3.0% VRDN 3.04% due 05/01/2015 (a) ..................... $ 7,500,000
2,995,000 Birmingham, Alabama Waterworks & Sewer Board
(Water & Sewer Revenue Floater -- Series 947)
VRDN 3.03% due 01/01/2033 (a) ..................... 2,995,000
30,000,000 Columbia, Alabama IDB Revenue (Alabama
Power Co.) VRDN 3.10% due 11/01/2021 (a) .......... 30,000,000
1,255,000 Daphne, Alabama Special Care Facilities Authority
Revenue (Floaters -- Series 593) VRDN 3.07%
due 08/15/2028 (a)(b) ............................. 1,255,000
35,000,000 Decatur, Alabama IDB Revenue VRDN 3.07%
due 08/01/2036 (a) ................................ 35,000,000
Jefferson County, Alabama Sewer Revenue Warrants
VRDN:
60,700,000 (Series B) 3.04% due 01/01/2027 (a) ............... 60,700,000
69,500,000 (Series B-7) 3.00% due 02/01/2042 (a) ............. 69,500,000
30,000,000 (Series C-3) 3.04% due 02/01/2040 (a) ............. 30,000,000
20,000,000 (Series C-4) 3.04% due 02/01/2040 (a) ............. 20,000,000
93,600,000 (Series C-6) 3.00% due 02/01/2040 (a) ............. 93,600,000
2,445,000 Tuscaloosa, Alabama Educational Building Authority
Revenue (American Christian Education) VRDN
3.04% due 01/01/2023 (a) .......................... 2,445,000
6,700,000 Tuscaloosa County, Alabama IDA Solid Waste
Disposal Revenue VRDN 3.07% due 09/01/2020 (a) 6,700,000
University of Alabama General Revenue VRDN:
4,795,000 (Putters -- Series 477) 3.03% due 07/01/2012 (a)(b) 4,795,000
16,000,000 (Series C) 3.00% due 07/01/2034 (a) ............... 16,000,000
- ------------------------------------------------------------------------------------------------------
Alaska -- 20,000,000 Alaska IDA Revenue (ROCS RR II R 320) VRDN
0.6% 3.03% due 04/01/2034 (a)(b) ....................... 20,000,000
5,000,000 Anchorage, Alaska (ROCS RR II R 6034) VRDN
3.03% due 12/01/2024 (a)(b) ....................... 5,000,000
2,300,000 Valdez, Alaska Marine Term Revenue (Philips
Transportation Project) FXRDN 3.03%
due 05/01/2006 .................................... 2,300,000
See Notes to Financial Statements.
48
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Alaska Valdez, Alaska Marine Term Revenue (Philips
(continued) 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 -- 3,000,000 Arizona School Facilities Board Certificate
1.7% Partnership VRDN 3.03% due 09/01/2017 (a) ......... 3,000,000
2,630,000 Arizona State University Certificate Partnership
VRDN 3.03% due 09/01/2012 (a) ..................... 2,630,000
23,000,000 Maricopa County, Arizona IDA Health Facilities
Revenue (Putters -- Series 420) VRDN 3.05%
due 01/01/2010 (a)(b) ............................. 23,000,000
Maricopa County, Arizona IDA S/F Mortgage
Revenue (Series A) FXRDN:
9,816,852 2.91% due 08/01/2005 .............................. 9,816,852
20,439,317 2.91% due 09/01/2005 .............................. 20,439,317
2,695,875 2.91% due 08/01/2006 .............................. 2,695,875
34,817,201 Maricopa County, Arizona IDA S/F Mortgage
Revenue (Series B) FXRDN 2.91% due 09/01/2005...... 34,817,201
Phoenix, Arizona IDA S/F Housing Notes (Series A)
FXRDN:
66,203,184 2.88% due 07/01/2005 .............................. 66,203,184
27,716,655 2.88% due 05/01/2006 .............................. 27,716,655
20,200,000 Phoenix, Arizona Water Revenue (Series 03-B) CP
2.43% due 06/09/2005 .............................. 20,200,000
10,200,000 Salt River Project, Arizona (Series B) CP 2.27%
due 05/04/2005 .................................... 10,200,000
- ------------------------------------------------------------------------------------------------------
Arkansas -- 7,000,000 Arkansas State Development Finance Authority
1.3% Environmental Facilities Revenue (Teris LLC
Project) VRDN 3.05% 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
3.09% due 05/01/2031 (a) .......................... 3,750,000
89,408,597 Arkansas State Development Finance Authority S/F
Housing Revenue FXRDN 2.91% due 09/01/2005 ........ 89,408,597
See Notes to Financial Statements.
49
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Arkansas $ 41,625,000 Arkansas State Development Finance Authority S/F
(continued) Housing Revenue Floater Certificates (Series 708)
VRDN 3.09% due 02/01/2008 (a)(b) .................. $ 41,625,000
10,000,000 North Little Rock, Arkansas Health Facilities Board
Revenue (Baptist Health -- Series B) VRDN 3.02%
due 12/01/2021 (a) ................................ 10,000,000
6,650,000 Pulaski County, Arkansas Public Facilities Board M/F
Revenue (Chapel Ridge -- South West) VRDN
3.07% due 10/01/2034 (a) .......................... 6,650,000
- ------------------------------------------------------------------------------------------------------
California -- 9,735,000 California State (Merlots B-45) VRDN 3.05%
2.8% due 10/01/2029 (a) ................................ 9,735,000
200,000,000 California State (Series A) RAN 3.00%
due 06/30/2005 .................................... 200,410,787
35,000,000 California State Municipal Securities Trust
Certificates (SGA 119) DDN 3.03% due
09/01/2028 (a)(b) ................................. 35,000,000
35,155,000 California State Municipal Securities Trust
Certificates (SGA 136) DDN 3.03% due
12/01/2030 (a)(b) ................................. 35,155,000
25,000,000 California State RAN 4.50% due 06/30/2005 ........... 25,107,313
9,820,000 California Statewide Community Development
Authority Revenue (Floaters -- Series 909) VRDN
3.01% due 08/15/2023 (a)(b) ....................... 9,820,000
40,280,000 Los Angeles, California S/F Home Mortgage Revenue
FXRDN 2.87% due 10/01/2005 ........................ 40,280,000
- ------------------------------------------------------------------------------------------------------
Colorado -- 4,000,000 Arvada, Colorado Utility IPMS Water Enterprise
2.0% Revenue (Dexia Public Finance) VRDN 2.40%
due 11/01/2020 (a) ................................ 4,000,000
5,050,000 Castle Pines North Metropolitan District VRDN
3.12% due 12/01/2028 (a) .......................... 5,050,000
7,355,000 Colorado Department of Transportation Revenue
(Putters -- Series 318) VRDN 3.03%
due 06/15/2015 (a)(b) ............................. 7,355,000
9,625,000 Colorado Department of Transportation Revenue
(Floaters -- Series 1009) VRDN 3.02%
due 12/15/2016 (a)(b) ............................. 9,625,000
See Notes to Financial Statements.
50
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Colorado $ 15,000,000 Colorado Educational & Cultural Facilities Authority
(continued) Revenue (Student Housing -- Fuller Project) VRDN
3.12% due 08/01/2035 (a) .......................... $ 15,000,000
18,370,000 Colorado Health Facilities Authority Revenue
(Catholic Health -- Series B) VRDN 3.00%
due 03/01/2032 (a) ................................ 18,370,000
9,875,000 Colorado Health Facilities Authority Revenue
(Christian Living Campus -- Series C) VRDN
3.03% due 01/01/2037 (a) .......................... 9,875,000
21,790,000 Colorado Springs School District (No. 11 Facilities
Corp.) VRDN 3.02% due 12/01/2017 (a) .............. 21,790,000
18,745,000 Colorado Student Educational Loan Program
(Floater -- Series L49J) VRDN 3.08%
due 08/09/2005 (a)(b) ............................. 18,745,000
5,580,000 Denver, Colorado City & County Airport Revenue
(Merlots -- Series A-61) VRDN 3.13%
due 11/15/2012 (a)(b) ............................. 5,580,000
13,000,000 Denver, Colorado City & County Airport Revenue
(Series B) VRDN 3.08% due 11/15/2024 (a) .......... 13,000,000
2,365,000 Denver, Colorado City & County Housing Revenue
(Circle Village Project) VRDN 3.07%
due 10/01/2029 (a) ................................ 2,365,000
Denver, Colorado City & County S/F Mortgage
Revenue (Series A) FXRDN:
856,400 2.99% due 10/25/2005 .............................. 856,400
16,949,200 2.99% due 10/25/2008 .............................. 16,949,200
E-470 Public Highway Authority Colorado Revenue
VRDN:
3,000,000 (Floaters -- Series 997) 3.09% due
03/01/2036 (a)(b) ............................... 3,000,000
5,310,000 (Floaters -- Series 1064) 3.09% due
09/01/2029 (a)(b) ............................... 5,310,000
9,165,000 El Paso County, Colorado Certificate Partnership
(ROCS RR ll-R 1050) VRDN 1.70%
due 12/01/2020 (a)(b) ............................. 9,165,000
7,970,000 El Paso County, Colorado Certificate Partnership
(ROCS RR ll-R 2002) VRDN 1.70%
due 12/01/2019 (a)(b) ............................. 7,970,000
See Notes to Financial Statements.
51
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Colorado $ 4,754,645 El Paso County, Colorado S/F Mortgage Revenue
(continued) (Series A) FXRDN 2.97% due 05/25/2005 ............. $ 4,754,645
5,300,000 Goldsmith Metropolitan District Colorado VRDN
3.20% due 12/01/2034 (a) .......................... 5,300,000
4,995,000 Jefferson County, Colorado School District
(Putters -- Series 674) VRDN 3.03%
due 12/15/2012 (a)(b) ............................. 4,995,000
31,800,000 Lower Colorado, River Authority Revenue (Series A)
CP 2.00% due 05/04/2005 ........................... 31,800,000
3,300,000 Lower Colorado, River Authority Transmission
Contract Revenue (Putters -- Series 623) VRDN
3.03% due 11/15/2009 (a)(b) ....................... 3,300,000
6,830,000 Regional Transportation District Sales Tax Revenue
(Series 679) VRDN 3.03% due 05/01/2010 (a) ........ 6,830,000
4,235,000 Summit County, Colorado School District (Putters --
Series 646) VRDN 3.03% due 12/01/2012 (a)(b) ...... 4,235,000
16,240,000 Traer Creek, Colorado Metropolitan District Revenue
VRDN 3.07% due 10/01/2021 (a) ..................... 16,240,000
7,000,000 University of Colorado Enterprise Systems Revenue
(Putters -- Series 862) VRDN 3.03%
due 12/01/2012 (a)(b) ............................. 7,000,000
- ------------------------------------------------------------------------------------------------------
Connecticut -- 142,515,000 Connecticut State Special Tax Obligation Revenue
1.1% VRDN 3.04% due 02/01/2022 (a) ..................... 142,515,000
- ------------------------------------------------------------------------------------------------------
Delaware -- 4,775,000 Delaware State (ROCS RR II R 4045) VRDN 3.03%
0.0% due 07/01/2012 (a)(b) ............................. 4,775,000
- ------------------------------------------------------------------------------------------------------
District of 5,400,000 District of Columbia (Merlots -- Series B-13) VRDN
Columbia -- 3.08% due 06/01/2022 (a)(b) ....................... 5,400,000
1.1% 59,340,000 District of Columbia Housing Finance Agency
Mortgage Revenue S/F FXRDN 3.04%
due 12/23/2005 .................................... 59,340,000
4,450,000 District of Columbia Revenue (Washington Very SPL
Arts) VRDN 3.10% due 01/01/2027 (a) ............... 4,450,000
See Notes to Financial Statements.
52
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
District of District of Columbia Revenue Bond (American
Columbia National Red Cross -- Series 00) CP:
(continued) $ 24,700,000 2.37% due 05/09/2005 .............................. $ 24,700,000
22,500,000 2.40% due 05/09/2005 .............................. 22,500,000
20,095,000 Washington D.C. Convention Center Authority
Dedicated Tax Revenue (Floater Certificates --
Series 539) VRDN 3.03% due 10/01/2021 (a)(b) ..... 20,095,000
- ------------------------------------------------------------------------------------------------------
Florida -- 5,000,000 Brevard County, Florida Health Facilities Authority
5.0% Revenue (Wuesthoff Health System Project) VRDN
3.00% due 01/01/2034 (a) .......................... 5,000,000
39,210,000 Capital Trust Agency, Florida -- M/F Housing
Revenue Bond (Series 99-B) VRDN 3.15%
due 12/01/2032 (a) ................................ 39,210,000
6,400,000 Dade County, Florida IDA Facilities Revenue
(Florida Power & Light Co.) VRDN 3.06%
due 06/01/2021 (a) ................................ 6,400,000
18,035,000 Duval County, Florida School Board Certificate
Partnership (ROCS RR II R 346) VRDN 2.98%
due 07/01/2025 (a)(b) ............................. 18,035,000
Escambia County, Florida Health Facilities Authority
Revenue (Azalea Trace Inc.) DDN:
11,490,000 (Series A) 3.05% due 11/15/2015 (a) ............... 11,490,000
25,395,000 (Series B) 3.05% due 11/15/2029 (a) ............... 25,395,000
Florida State Board of Education VRDN:
4,900,000 3.03% due 06/01/2018 (a) .......................... 4,900,000
6,000,000 3.01% due 06/01/2032 (a)(b) ....................... 6,000,000
Florida State Board of Education VRDN:
7,465,000 (Putters -- Series 473) 3.03% due 06/01/2011 (a)(b) 7,465,000
4,450,000 (Putters -- Series 692) 3.03% due 06/01/2011 (a)(b) 4,450,000
8,835,000 Florida State Board of Education Capital Outlay
(Putters -- Series 770) VRDN 3.03%
due 12/01/2012 (a)(b) ............................. 8,835,000
10,050,000 Florida State Board of Education Lottery Revenue
(Floaters -- Series 1016) VRDN 3.03%
due 07/01/2016 (a)(b) ............................. 10,050,000
See Notes to Financial Statements.
53
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Florida $ 2,920,000 FSU Final Assistance Inc., Florida Educational
(continued) Athletic Facilities Revenue (MSTR SGB 44-A) VRDN
3.03% due 10/01/2031 (a)(b) ....................... $ 2,920,000
11,870,000 Gainesville, Florida Utilities Systems (Series C) CP
2.30% due 05/04/2005 .............................. 11,870,000
5,000,000 Highlands County, Florida Health Facilities Authority
Revenue (Adventist Health -- System C) VRDN
3.07% due 11/15/2021 (a) .......................... 5,000,000
6,600,000 Hillsborough County, Florida Housing Finance
Authority M/F Revenue (Meridian Pointe Project)
VRDN 3.06% due 08/15/2037 (a) ..................... 6,600,000
7,870,000 Hillsborough County, Florida School Board Certificate
Partnership (Putters -- Series 741) VRDN 3.03%
due 01/01/2013 (a)(b) ............................. 7,870,000
17,000,000 Jacksonville, Florida Health Facilities Authority
(Mayo Foundation -- Series 01-A) CP 2.10%
due 05/02/2005 .................................... 17,000,000
4,600,000 Jacksonville, Florida Sales Tax Revenue (Merlot B-26)
VRDN 3.08% due 10/01/2027 (a)(b) .................. 4,600,000
32,200,000 JEA, Florida (Series 2) VRDN 2.05%
due 05/10/2005 (a) ................................ 32,200,000
5,470,000 JEA, Florida Water & Sewer Systems Revenue
(Putters -- Series 805) VRDN 3.03%
due 10/01/2012 (a)(b) ............................. 5,470,000
30,600,000 Lakeland, Florida Energy System Revenue (Series A)
VRDN 3.03% due 10/01/2035 (a) ..................... 30,600,000
Lee County, Florida Hospital Board Directors
Revenue (Member Health System) DDN:
29,250,000 (Series A) 3.07% due 04/01/2025 (a) ............... 29,250,000
55,605,000 (Series B) 3.07% due 04/01/2027 (a) ............... 55,605,000
3,100,000 Miami Dade County, Florida School Board Certificate
Partnership (Putters -- Series 534) VRDN 3.03%
due 08/01/2011 (a)(b) ............................. 3,100,000
30,590,000 Orange County, Florida Health Facilities Authority
Revenue (Floater Certificates -- Series 531) VRDN
3.04% due 11/15/2021 (a)(b) ....................... 30,590,000
See Notes to Financial Statements.
54
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Florida $ 16,500,000 Orange County, Florida Health Facilities Authority
(continued) Revenue (Floater Certificates -- Series 830) VRDN
3.03% due 11/15/2022 (a)(b) ....................... $ 16,500,000
Orange County, Florida School Board Certificate
Partneship VRDN:
3,800,000 (Putters -- Series 560) 3.03% due 08/01/2012 (a)(b) 3,800,000
3,515,000 (Putters -- Series 738) 3.03% due 02/01/2013 (a)(b) 3,515,000
3,755,000 Palm Beach County, Florida School Board Certificate
Partnership (ROCS RR II R 2105) VRDN 3.03%
due 08/01/2015 (a)(b) ............................. 3,755,000
6,600,000 Polk County, Florida IDA IDR (Lifepath Hospice
Project) VRDN 3.00% due 08/01/2028 (a) ............ 6,600,000
199,985,000 Saint Lucie County, Florida PCR (Florida Power &
Light Company Project) DDN 3.06%
due 09/01/2028 (a) ................................ 199,985,000
3,500,000 West Palm Beach Florida Utilities Systems Revenue
(Floaters -- Series 972) VRDN 3.03%
due 10/01/2034 (a)(b) ............................. 3,500,000
- ------------------------------------------------------------------------------------------------------
Georgia -- 4,820,000 Albany -- Dougherty County, Georgia Hospital
2.4% Authority Revenue VRDN 3.08%
due 09/01/2020 (a) ................................ 4,820,000
4,500,000 Atlanta, Georgia Urban Residential Finance Authority
M/F Revenue (Lindberg City Center Apartments)
VRDN 3.06% due 11/01/2044 (a) ..................... 4,500,000
7,000,000 Atlanta, Georgia Urban Residential Finance Authority
M/F Revenue (M Street Apartments Project) VRDN
3.07% due 03/01/2043 (a) .......................... 7,000,000
13,875,000 Atlanta, Georgia Water & Wastewater Revenue
(Series 745-D) VRDN 3.03% due 11/01/2017 (a) ...... 13,875,000
3,000,000 Atlanta, Georgia Water & Wastewater Revenue
VRDN 3.03% due 11/01/2033 (a) ..................... 3,000,000
11,000,000 Atlanta, Georgia Water & Wastewater Revenue
(ROCS RR II R 324) VRDN 3.03%
due 11/01/2043 (a)(b) ............................. 11,000,000
See Notes to Financial Statements.
55
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Georgia $ 11,660,000 Atlanta, Georgia Water & Wastewater Revenue
(continued) (Eagle 72005-009 CL A) VRDN 3.03%
due 11/01/2043 (a)(b) ............................. $ 11,660,000
10,000,000 Clayton County, Georgia Development Authority
Facilities Revenue (Delta Airlines -- Series C)
VRDN 3.07% due 05/01/2035 (a) ..................... 10,000,000
7,550,000 Cobb County, Georgia Housing M/F Housing
Revenue (Walton Reserve Apartments Project)
VRDN 2.99% due 10/01/2035 (a) ..................... 7,550,000
10,285,000 Colquitt County, Georgia Hospital Authority Revenue
VRDN 3.12% due 03/01/2023 (a) ..................... 10,285,000
17,065,000 Crisp County, Georgia Solid Waste Management
Authority Revenue VRDN 3.42%
due 01/01/2023 (a) ................................ 17,065,000
19,145,000 Eagle Tax-Exempt Trust -- State of Georgia
(Series 981002) VRDN 3.03% due
07/01/2014 (a)(b) ................................. 19,145,000
22,955,000 Eagle Tax-Exempt Trust -- State of Georgia
(Series 991001) VRDN 3.03% due
11/01/2017 (a)(b) ................................. 22,955,000
8,000,000 Fulton County, Georgia Development Authority
Revenue (Shepherd Center Inc. Project) VRDN
3.00% due 09/01/2035 (a) .......................... 8,000,000
29,050,000 Fulton County, Georgia Housing Authority Lease
Revenue (Pathways Homer Ownership) VRDN
3.02% due 03/01/2009 (a) .......................... 29,050,000
1,645,000 Fulton County, Georgia Water & Sewer Revenue
(Eagle 72005-0005 CL A) VRDN 3.03%
due 01/01/2035 (a)(b) ............................. 1,645,000
3,010,000 Fulton Dekalb, Georgia Hospital Authority Revenue
(ROCS RR II R 2127) VRDN 3.03%
due 01/01/2019 (a)(b) ............................. 3,010,000
Gainesville & Hall County, Georgia Development
Authority Revenue (Senior Living Facilities --
Lanier) DDN:
10,750,000 (Series A) 3.05% due 11/15/2010 (a) ............... 10,750,000
See Notes to Financial Statements.
56
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Georgia $ 4,150,000 (Series C) 3.05% due 11/15/2030 (a) ............... $ 4,150,000
(continued) 3,505,000 Gainesville & Hall County, Georgia Development
Authority Revenue (Atex Inc. Project) VRDN
3.11% due 09/01/2023 (a) .......................... 3,505,000
6,465,000 Georgia State (Putters -- Series 440) VRDN 3.01%
due 05/01/2010 (a) ................................ 6,465,000
Georgia State Local Government Certificate
Partnership (Macon Trust Series 2002-0) VRDN:
4,515,000 3.07% due 12/01/2022 (a) .......................... 4,515,000
4,515,000 3.07% due 06/01/2028 (a) .......................... 4,515,000
8,340,000 Georgia Municipal Gas Authority (Gas Revenue
Agency Project -- Series C) VRDN 3.00%
due 11/01/2007 (a) ................................ 8,340,000
3,680,000 Gwinnett County, Georgia Development Authority
Revenue (Barcoview LLC Project) VRDN 3.15%
due 07/01/2018 (a) ................................ 3,680,000
3,985,000 Gwinnett County, Georgia Development Authority
Revenue Certificate Partnership (ROCS RR II R
6009) VRDN 3.03% due 01/01/2021 (a)(b) ............ 3,985,000
20,020,000 Metropolitan Atlanta Rapid Transit Authority Sales
Tax Revenue (Putters -- Series 312) VRDN 3.02%
due 07/01/2021 (a)(b) ............................. 20,020,000
3,215,000 Metropolitan Atlanta Rapid Transit Authority Sales
Tax Revenue (ROCS RR II R 4011) VRDN 3.03%
due 07/01/2019 (a)(b) ............................. 3,215,000
9,625,000 Private Colleges & Universities Authority Revenue
(Mercer University Project) VRDN 3.12%
due 10/01/2032 (a) ................................ 9,625,000
1,995,000 Thomaston-Upson County, Georgia IDA Revenue
(Thomaston Manufacturing Project) VRDN 3.15%
due 12/01/2011 (a) ................................ 1,995,000
15,000,000 Ware County, Georgia Hospital Authority Revenue
(Baptist Village Project) VRDN 3.00%
due 11/01/2020 (a) ................................ 15,000,000
See Notes to Financial Statements.
57
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Georgia $ 15,800,000 Winder Barrow County, Georgia Joint Development
(continued) Authority (Republic Service Inc. Project) DDN
3.08% due 11/01/2034 (a) .......................... $ 15,800,000
- ------------------------------------------------------------------------------------------------------
Hawaii -- 2,000,000 Hawaii State (ROCS RR II R 6504) VRDN 3.03%
0.5% due 10/01/2024 (a)(b) ............................. 2,000,000
55,000,000 Hawaii State Department Budget & Finance Revenue
(Putters -- Series 834) VRDN 3.05%
due 07/01/2009 (a)(b) ............................. 55,000,000
2,645,000 Honolulu, Hawaii City & County (ROCS RR II R
5025) VRDN 3.03% due 07/01/2014 (a)(b) ............ 2,645,000
- ------------------------------------------------------------------------------------------------------
Idaho -- 4,250,000 Idaho Housing & Finance Association Nonprofit
0.2% Facilities Revenue (Albertson College Project)
VRDN 3.02% due 11/01/2021 (a) ..................... 4,250,000
4,080,000 Idaho Housing & Finance Association Revenue
(Balmoral Apartments Project) DDN 3.15%
due 05/01/2032 (a) ................................ 4,080,000
10,400,000 Idaho Housing & Finance Association S/F Mortgage
(Series F) VRDN 3.09% due 01/01/2033 (a) .......... 10,400,000
1,290,000 Madison, Idaho Economic Development Corp. IDR
(Floyd Wilcox & Sons, Inc. Project) VRDN 3.14%
due 08/01/2012 (a) ................................ 1,290,000
- ------------------------------------------------------------------------------------------------------
Illinois -- 2,170,000 Aurora, Illinois IDR (Aztech Engineering Inc.
6.9% Project) VRDN 3.10% due 10/01/2018 (a) ............ 2,170,000
40,043,000 Aurora, Illinois Kane-Dupage County S/F (Floaters --
Series 1021) VRDN 3.09% due 03/01/2006 (a)(b) ..... 40,043,000
Chicago, Illinois VRDN:
7,240,000 (Putters -- Series 736) 3.03% due 01/01/2013 (a)(b) 7,240,000
5,745,000 (Floaters -- Series 1067) 3.03% due 01/01/2034 (a)(b) 5,745,000
Chicago, Illinois Board of Education VRDN:
4,250,000 (Putters -- Series 472) 3.06% due 06/01/2014 (a)(b) 4,250,000
5,000,000 (Floaters -- Series 1063) 3.09% due 12/01/2020 (a)(b) 5,000,000
4,800,000 Chicago, Illinois Eagle 2003-0006 VRDN 3.03%
due 01/01/2042 (a) ................................ 4,800,000
See Notes to Financial Statements.
58
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Illinois $ 7,000,000 Chicago, Illinois IDR (Enterprise Center VIII
(continued) Project) VRDN 3.08% due 06/01/2022 (a) ............ $ 7,000,000
7,500,000 Chicago, Illinois O'Hare International Airport
Revenue (Putters -- Series 670) VRDN 3.06%
due 01/01/2012 (a)(b) ............................. 7,500,000
2,500,000 Chicago, Illinois O'Hare International Airport
Revenue (ROCS RR II R 239) VRDN 3.07%
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 3.08% due 03/01/2037 (a) ..................... 8,000,000
7,075,000 Chicago, Illinois Park District (Merlots --
Series A-61) VRDN 3.08% due 01/01/2021 (a)(b) ..... 7,075,000
11,455,000 Chicago, Illinois Park District (Putters --
Series 521) VRDN 3.03% due 07/01/2012 (a)(b) ...... 11,455,000
2,975,000 Chicago, Illinois Public Building Revenue VRDN
3.03% due 12/01/2014 (a) .......................... 2,975,000
4,200,000 Chicago, Illinois Solid Waste Disposal Facilities
Revenue (Groot Industries Inc. Project) VRDN
3.15% due 12/01/2015 (a) .......................... 4,200,000
10,065,000 Chicago, Illinois Wastewater Transmission Revenue
(Merlots -- Series A-125) VRDN 3.08%
due 01/01/2030 (a)(b) ............................. 10,065,000
Cook County, Illinois VRDN:
3,585,000 (Merlots -- Series B-11) 3.08% due 11/15/2025 (a)(b) 3,585,000
2,400,000 (Putters -- Series 559) 3.03% due 05/15/2012 (a)(b) 2,400,000
5,400,000 (Putters -- Series 776) 3.03% due 05/15/2012 (a)(b) 5,400,000
6,300,000 (Putters -- Series 566) 3.03% due 11/15/2012 (a)(b) 6,300,000
33,000,000 Cook County, Illinois VRDN (Series E) 3.04%
due 11/01/2033 (a) ................................ 33,000,000
2,275,000 Des Plaines, Illinois IDR (414 East Golf Road Project)
VRDN 3.16% due 05/01/2017 (a) ..................... 2,275,000
Eagle Tax-Exempt Trust -- Metropolitan Pier &
Exposition II (Series 02-6001) VRDN:
5,000,000 3.03% due 12/15/2028 (a)(b) ....................... 5,000,000
6,150,000 3.03% due 06/15/2042 (a)(b) ....................... 6,150,000
See Notes to Financial Statements.
59
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Illinois $ 10,840,000 Eagle Tax-Exempt Trust (Series 02-6002) VRDN
(continued) 3.03% due 04/01/2022 (a)(b) ....................... $ 10,840,000
2,530,000 Elgin, Illinois IDR (Starro Precision Products Inc.
Project) VRDN 3.15% due 06/01/2025 (a) ............ 2,530,000
35,000 Geneva, Illinois IDR (Continental Envelope Corp.
Project) VRDN 3.15% due 09/01/2006 (a) ............ 35,000
26,550,000 Illinois Education Facilities Authority Revenue
(Art Institute of Chicago) VRDN 3.00%
due 03/01/2027 (a) ................................ 26,550,000
13,800,000 Illinois Education Facilities Authority Revenue
(Concordia University River Project) DDN 3.06%
due 10/01/2031 (a) ................................ 13,800,000
9,800,000 Illinois Education Facilities Authority Revenue
(ITT State Street Corp -- Series A) VRDN 3.07%
due 06/01/2033 (a) ................................ 9,800,000
Illinois Health Facilities Authority Revenue
(Central Dupage Health) DDN:
46,900,000 (Series B) 3.06% due 11/01/2027 (a) ............... 46,900,000
50,000,000 (Series C) 3.06% due 11/01/2027 (a) ............... 50,000,000
59,025,000 Illinois Health Facilities Authority Revenue
(Northwest Community Hospital -- Series B) DDN
3.04% due 07/01/2032 (a) .......................... 59,025,000
345,000 Illinois Health Facilities Authority Revenue (Chestnut
Square Glen Project -- Series C) VRDN 3.01%
due 08/15/2032 (a) ................................ 345,000
16,900,000 Illinois Health Facilities Authority Revenue (Memorial
Health System) DDN 3.10% due 10/01/2022 (a) ....... 16,900,000
12,275,000 Illinois Health Facilities Authority Revenue (Palos
Community Hospital -- Series B) VRDN 3.04%
due 12/01/2015 (a) ................................ 12,275,000
10,000,000 Illinois Health Facilities Authority Revenue (Series A)
VRDN 3.00% due 10/01/2010 (a) ..................... 10,000,000
10,000,000 Illinois Finance Authority Revenue (Rest Haven
Christian Service -- Series B) VRDN 3.03%
due 11/15/2034 (a) .................................... 10,000,000
See Notes to Financial Statements.
60
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Illinois $ 7,000,000 Illinois Finance Authority Revenue (Mercy Alliance
(continued) Project) VRDN 3.03% due 02/15/2035 (a) ............ $ 7,000,000
2,600,000 Illinois State Development Finance Authority IDR
(Design Automotive LLC Project) VRDN 3.15%
due 06/01/2011 (a) ................................ 2,600,000
2,015,000 Illinois State Development Finance Authority IDR
(Rockford College Project) VRDN 3.10%
due 02/01/2021 (a) ................................ 2,015,000
1,400,000 Illinois State Development Finance Authority
(AMR Pooled -- Series B-2) VRDN 3.26%
due 10/01/2029 (a) ................................ 1,400,000
Illinois State Development Finance Authority
(Palos Community Hospital) VRDN:
12,000,000 3.04% due 11/15/2011 (a) .......................... 12,000,000
10,000,000 3.04% due 09/01/2015 (a) .......................... 10,000,000
45,700,000 3.04% due 11/15/2024 (a) .......................... 45,700,000
28,900,000 Illinois State Municipal Securities Trust Receipts
(SGA 103) VRDN 3.05% due 08/01/2024 (a)(b) ........ 28,900,000
Illinois State VRDN:
4,310,000 (Merlots -- Series A-124) 3.08% due 11/01/2026
(a)(b)........................................... 4,310,000
4,985,000 (Merlots -- Series B-05) 3.08% due 07/01/2022
(a)(b)........................................... 4,985,000
120,000,000 Illinois State VRDN (Series B) 3.04%
due 10/01/2033 (a) ................................ 120,000,000
Illinois Student Assistance Loan Revenue (Series A)
VRDN:
4,700,000 3.02% due 09/01/2031 (a) .......................... 4,700,000
12,450,000 3.02% due 09/01/2032 (a) .......................... 12,450,000
17,500,000 3.02% due 09/01/2034 (a) .......................... 17,500,000
3,795,000 Kane & Du Page County, Illinois Community School
District (St. Charles Putters -- Series 824) VRDN
3.03% due 01/01/2013 (a) .......................... 3,795,000
5,800,000 Lake County, Illinois Community School District --
73 (Hawthorn Putters -- Series 329) VRDN 3.06%
due 12/01/2014 (a) ................................ 5,800,000
See Notes to Financial Statements.
61
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Illinois $ 4,260,000 Macon County, Illinois Revenue Millikin University
(continued) VRDN 3.03% due 10/01/2031(a) ...................... $ 4,260,000
Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue VRDN:
1,500,000 (Floaters -- Series 962) 3.09% due 12/15/2034
(a)(b)........................................... 1,500,000
3,500,000 (Eagle 2004-003) 3.03% due 06/15/2042 (a)(b) ...... 3,500,000
5,000,000 Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue (Series Z-1) VRDN
3.11% due 12/15/2026 (a) .......................... 5,000,000
Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue VRDN:
9,535,000 (ROCS RR II R 271) 3.12% due 12/15/2032 (a)(b) 9,535,000
900,000 (ROCS RR II R 310) 3.12% due 12/15/2033 (a)(b) 900,000
12,100,000 Municipal Securities Trust Certificates -- Chicago,
Illinois O'Hare International Airport (Class A --
Series 93) DDN 3.07% due 10/04/2012 (a)(b) ........ 12,100,000
12,160,000 Municipal Securities Trust Certificates -- Chicago,
Illinois (Class A -- Series 2001-121) VRDN 3.01%
due 12/22/2009 (a)(b) ............................. 12,160,000
12,495,000 Municipal Securities Trust Certificates -- Chicago,
Illinois (Class A -- Series 2001-124) VRDN 3.05%
due 08/20/2014 (a)(b) ............................. 12,495,000
Regional Transportation Authority Illinois VRDN:
2,895,000 (Eagle 72005-0028 CL A) 3.03% due 06/01/2027 (a)(b) 2,895,000
2,950,000 (Eagle 72005-0003 CL A) 3.03% due 06/01/2034 (a)(b) 2,950,000
32,842,500 Regional Transportation Authority Illinois (Floaters --
Series D-818) VRDN 3.03% due 07/01/2033 (a)(b) 32,842,500
4,940,000 Regional Transportation Authority Illinois (Merlots --
Series A-41) VRDN 3.08% due 06/01/2017 (a)(b) ..... 4,940,000
9,940,000 Regional Transportation Authority Illinois (Merlots --
Series A-24) VRDN 3.08% due 07/01/2032 (a)(b) ..... 9,940,000
4,095,000 Southern Illinois University Revenue (Putters --
Series 562) VRDN 3.03% due 04/01/2012 (a)(b) ...... 4,095,000
- ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
62
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Indiana -- $ 1,285,000 Allen County, Indiana EDR (Water Furnace
2.5% International Inc.) VRDN 3.18%
due 11/01/2014 (a) ................................ $ 1,285,000
325,000 Allen County, Indiana EDR (YMCA of Greater Fort
Wayne Project) VRDN 3.17% due 12/01/2009 (a) ...... 325,000
3,475,000 Baugo, Indiana School Building Corporation
(Floaters -- Series 676) VRDN 3.03%
due 01/15/2010 (a)(b) ............................. 3,475,000
985,000 Bloomington, Indiana EDR (Bloomington Square
Project) VRDN 3.10% due 12/01/2008 (a) ............ 985,000
2,000,000 Crawfordsville, Indiana EDR (Performance Master
LLC Project) VRDN 3.18% due 10/01/2018 (a) ........ 2,000,000
1,835,000 Dearborn County, Indiana EDR (D&S Machine
Products Inc.) VRDN 3.13% due 04/01/2018 (a) ...... 1,835,000
3,000,000 Elkhart County, Indiana EDR (Patriot Homes Inc.
Project) VRDN 3.14% due 08/01/2012 (a) ............ 3,000,000
3,500,000 Elkhart County, Indiana (Putters -- Series 553) VRDN
3.03% due 12/01/2023 (a)(b) ....................... 3,500,000
6,010,000 Greencastle, Indiana IDR (Crown Equipment Corp.
Project) VRDN 3.08% due 02/01/2011 (a) ............ 6,010,000
50,000,000 Indiana Bond Bank Revenue (Series A) BAN 3.25%
due 01/26/2006 .................................... 50,343,434
8,905,000 Indiana State Development Finance Authority Revenue
Educational Facilities (Cathedral High) DDN
3.10% due 09/01/2026 (a) .......................... 8,905,000
1,945,000 Indiana State Development Finance Authority EDR
(Indianapolis Urban League Inc.) VRDN 3.07%
due 01/01/2020 (a) ................................ 1,945,000
40,250,000 Indiana State Development Finance Authority
Environmental Revenue (PSI Energy Inc. Project --
Series B) VRDN 3.15% due 12/01/2038 (a) ........... 40,250,000
280,000 Indiana State Development Finance Authority IDR
(Centurion Industries Inc. Project) VRDN 3.23%
due 10/01/2005 (a) ................................ 280,000
See Notes to Financial Statements.
63
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Indiana $ 10,900,000 Indiana State Development Finance Authority IDR
(continued) (Republic Services Inc. Project) DDN 3.08%
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) 3.05% due 10/01/2025 (a) ............... 12,500,000
7,000,000 (Series B) 3.05% due 10/01/2025 (a) ............... 7,000,000
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
9,000,000 Indiana Health Facilities Financing Authority Revenue
(Margaret Mary Community Hospital -- Series A)
VRDN 3.10% due 12/01/2029 (a) ..................... 9,000,000
18,500,000 Indiana State Housing Finance Authority S/F
Mortgage Revenue (Series D-2) FXRDN 2.30%
due 12/15/2005 .................................... 18,500,000
9,075,000 Indiana State Office Building Community Facilities
Revenue (Merlot -- Series B-17) VRDN 3.08%
due 07/01/2023 (a) ................................ 9,075,000
Indiana Transportation Finance Authority Highway
Revenue VRDN:
2,350,000 (Floaters -- Series 942 D) 3.03% due 12/01/2022
(a)(b)........................................... 2,350,000
2,000,000 (Merlots -- Series B-21) 3.08% due 12/01/2022 (a)(b) 2,000,000
7,485,000 (Putters -- Series 479) 3.03% due 06/01/2017 (a)(b) 7,485,000
6,340,000 Indiana University Revenue (ROCS RR II R 6508)
VRDN 3.03% due 08/01/2021 (a)(b) .................. 6,340,000
3,900,000 Indianapolis, Indiana EDR (New Bridges Apartments
Project) VRDN 3.07% due 06/01/2035 (a) ............ 3,900,000
50,000,000 Indianapolis, Indiana Gas Utility Revenue CP 2.40%
due 05/04/2005 .................................... 50,000,000
5,020,000 Indianapolis, Indiana Gas Utilities Revenue (Merlot --
Series A-50) VRDN 3.08% due 06/01/2013 (a)(b) ..... 5,020,000
2,620,000 Indianapolis, Indiana Local Public Board (Putters --
Series 422) VRDN 3.06% due 08/15/2020 (a)(b) ...... 2,620,000
See Notes to Financial Statements.
64
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Indiana $ 6,790,000 Indianapolis, Indiana Thermal Energy System
(continued) Revenue (Putters -- Series 700) VRDN 3.03%
due 04/01/2010 (a)(b) ............................. $ 6,790,000
2,400,000 Kendallville, Indiana EDR (Bollhoff Rivnut Project)
VRDN 3.13% due 02/01/2025 (a) ..................... 2,400,000
8,100,000 Madison, Indiana EDR (Arvin Sango Inc. Project)
VRDN 3.25% due 08/01/2017 (a) ..................... 8,100,000
8,245,000 Mount Vernon of Hancock County, Indiana Multi-
School Building Corp. (ROCS RR II R 2197)
VRDN 3.03% due 01/15/2023 (a)(b) .................. 8,245,000
5,190,000 Sunman-Dearborn, Indiana High School Building
Corp. (Putters -- Series 671) VRDN 3.03%
due 01/15/2013 (a)(b) ............................. 5,190,000
- ------------------------------------------------------------------------------------------------------
Iowa -- 38,405,000 Iowa City, Iowa Revenue (Act Inc.) DDN 3.15%
1.3% due 04/01/2032 (a) ................................ 38,405,000
6,500,000 Iowa Finance Authority Retirement Community
Revenue (Wesley Retirement Services -- Series B)
VRDN 3.00% due 12/01/2033 (a) ..................... 6,500,000
25,000,000 Iowa Finance Authority Retirement Community
Revenue (Deerfield Retirement System -- Series B)
VRDN 3.01% due 12/01/2033 (a) ..................... 25,000,000
Iowa Finance Authority Revenue (Museum of Art
Foundation) DDN:
13,150,000 3.10% due 06/01/2033 (a) .......................... 13,150,000
14,500,000 3.10% due 10/01/2033 (a) .......................... 14,500,000
8,600,000 Iowa Higher Education Loan Authority Revenue
(Buena Vista University Project) VRDN 3.15%
due 12/01/2012 (a) ................................ 8,600,000
Iowa Higher Education Loan Authority Revenue
(Private College -- Des Moines) DDN:
6,800,000 3.10% due 10/01/2024 (a) .......................... 6,800,000
10,200,000 3.10% due 10/01/2033 (a) .......................... 10,200,000
3,900,000 Louisa County, Iowa PCR Refunding (Iowa-Ill G&E
Co.) VRDN 3.00% due 03/01/2017 (a) ................ 3,900,000
See Notes to Financial Statements.
65
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Iowa $ 19,500,000 Louisa County, Iowa PCR Refunding (Iowa-Ill G&E
(continued) Co. -- Series A) VRDN 3.00% 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 3.03%
due 06/01/2010 (a)(b) ............................. 15,370,000
- ------------------------------------------------------------------------------------------------------
Kansas -- 7,720,000 Johnson County, Kansas Public Building Community
0.4% Lease Revenue (Putters -- Series 528) VRDN
3.03% due 09/01/2010 (a)(b) ....................... 7,720,000
4,200,000 Kansas State Department of Transportation Highway
Revenue (ROCS RR II R 6020) VRDN 3.03%
due 03/01/2019 (a)(b) ............................. 4,200,000
10,055,000 Kansas State Development Finance Authority Revenue
(Hays Medical Center -- Series N) DDN 3.10%
due 05/15/2026 (a) ................................ 10,055,000
3,995,000 Lawrence, Kansas IDR Board (Prosoco Inc. Project --
Series 98-A) VRDN 3.17% due 12/01/2018 (a) ........ 3,995,000
4,200,000 Lenexa, Kansas M/F Housing Revenue (Meadows
Apartments Project -- Series A) VRDN 3.05%
due 04/15/2035 (a) ................................ 4,200,000
2,800,000 Reno County & Labette County, Kansas S/F
Mortgage Revenue (Floaters -- Series 915) VRDN
3.12% due 12/01/2015 (a)(b) ....................... 2,800,000
22,000,000 University of Kansas Hospital Authority Health
Facilities Revenue (KU Health System) VRDN
3.05% due 09/01/2034 (a) .......................... 22,000,000
- ------------------------------------------------------------------------------------------------------
Kentucky -- 1,060,000 Boone County, Kentucky Industrial Building Revenue
3.0% (Diocesan Educational Project) VRDN 3.18%
due 11/01/2018 (a) ................................ 1,060,000
2,400,000 Carroll County, Kentucky PCR (Kentucky Utility
Company Project -- Series A) CP 2.10%
due 05/09/2005 .................................... 2,400,000
2,500,000 Carroll County, Kentucky Solid Waste Disposal
Revenue (North American Stainless) VRDN 3.01%
due 05/01/2031 (a) ................................ 2,500,000
See Notes to Financial Statements.
66
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Kentucky $ 2,660,000 Crestview Hill, Kentucky Industrial Building Revenue
(continued) (Thomas More College Project) VRDN 3.08%
due 11/01/2018 (a) ................................ $ 2,660,000
1,290,000 Dayton, Kentucky Industrial Building Revenue
(Willow Green Project) VRDN 3.18%
due 08/01/2020 (a) ................................ 1,290,000
4,240,000 Glasgow, Kentucky Industrial Building Revenue
(Felker Brothers Corp. Project) VRDN 3.05%
due 04/01/2020 (a) ................................ 4,240,000
2,700,000 Graves County, Kentucky Solid Waste Disposal
Revenue (Waste Management Kentucky LLC
Project) VRDN 3.08% due 03/01/2021 (a) ............ 2,700,000
Henderson County, Kentucky Hospital Facilities
Revenue (Community Unlimited Methodist) VRDN:
3,500,000 (Series A) 2.99% due 12/01/2008 (a) ............... 3,500,000
8,590,000 (Series B) 2.99% due 12/01/2025 (a) ............... 8,590,000
16,410,000 Hopkins County, Kentucky Hospital Revenue
(Floaters -- Series 730) VRDN 3.05%
due 11/15/2011 (a)(b) ............................. 16,410,000
2,835,000 Jefferson County, Kentucky Industrial Building
Revenue (Hamilton Printing Project) VRDN 3.13%
due 12/01/2011 (a) ................................ 2,835,000
900,000 Jefferson County, Kentucky Industrial Building
Revenue (Thomas Development Project) VRDN
3.18% due 04/10/2010 (a) .......................... 900,000
9,000,000 Jefferson County, Kentucky PCR (Louisville Gas &
Electric Co.) CP 2.05% due 05/02/2005 ............. 9,000,000
Jefferson County, Kentucky PCR (Louisville Gas &
Electric Co.) CP:
26,000,000 (Series 92-A) 2.50% due 06/07/2005 ................ 26,000,000
32,200,000 (Series 93-A) 2.10% due 05/05/2005 ................ 32,200,000
3,000,000 (Series 93-A) 2.35% due 05/05/2005 ................ 3,000,000
45,200,000 Kenton County, Kentucky Airport Board of Special
Facilities Revenue (Airis Cincinnati LLC --
Series A) VRDN 3.10% due 07/01/2032 (a) ........... 45,200,000
See Notes to Financial Statements.
67
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Kentucky $ 5,740,000 Kenton County, Kentucky Educational Revenue
(continued) (St. Pius X School District Project) VRDN 3.08%
due 06/01/2023 (a) ................................ $ 5,740,000
9,280,000 Kentucky State Property & Buildings Community
Revenue (Floaters -- Series 1014) VRDN 3.03%
due 08/01/2021 (a)(b) ............................. 9,280,000
5,400,000 Kentucky State Turnpike Authority EDR (Floaters --
Series 1061) VRDN 3.03% due 07/01/2018 (a)(b) ..... 5,400,000
7,565,000 Kentucky State Turnpike Authority EDR (ROCS RR
II R 2200) VRDN 3.03% due 07/01/2023 (a)(b) ....... 7,565,000
20,000,000 Kentucky State Turnpike Authority Resource Recovery
Revenue (Floater Certificates -- Series 488) VRDN
3.03% 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 3.03% due 05/15/2037 (a)(b) .................. 5,600,000
7,400,000 Mercer County, Kentucky PCR (Kentucky Utility Co.
Project -- Series A) CP 2.10% due 05/09/2005 ...... 7,400,000
2,000,000 Midway, Kentucky Educational Building Revenue
(Midway College Project) VRDN 3.01%
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 3.08% due 03/01/2021 (a) ............ 5,000,000
7,000,000 Morehead, Kentucky League of Cities (Lease
Program Revenue -- Series A) VRDN 3.01%
due 06/01/2034 (a) ................................ 7,000,000
2,400,000 Muhlenberg County, Kentucky PCR (Kentucky Utility
Co. Project -- Series A) CP 2.10% due 05/09/2005 .. 2,400,000
1,450,000 Ohio County, Kentucky Solid Waste Disposal Revenue
(Waste Management Kentucky LLC Project) VRDN
3.08% due 03/01/2021 (a) .......................... 1,450,000
34,395,000 Ohio County, Kentucky PCR (Big Rivers Electric
Corp. Project) VRDN 3.00% due 06/01/2013 (a) ...... 34,395,000
See Notes to Financial Statements.
68
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Kentucky Trimble County, Kentucky PCR (Louisville Gas &
(continued) Electric Co. Project -- Series A) CP:
$ 17,500,000 2.02% due 05/02/2005 .............................. $ 17,500,000
20,000,000 2.05% due 05/02/2005 .............................. 20,000,000
35,800,000 2.05% due 05/04/2005 .............................. 35,800,000
24,200,000 2.35% due 05/04/2005 .............................. 24,200,000
- ------------------------------------------------------------------------------------------------------
Louisiana -- 4,500,000 Calcasieu Parish Inc. of Louisiana IDB Environmental
1.5% Revenue (Hydroserve Westlake) VRDN 3.06%
due 06/01/2025 (a) ................................ 4,500,000
5,000,000 East Baton Rouge Mortgage Financing Authority S/F
Revenue (Floaters -- Series 996) VRDN 3.09%
due 06/02/2008 (a)(b) ............................. 5,000,000
6,090,000 Ernest N. Morial, New Orleans, Louisiana (Exhibit
Hall Authority Special Tax Merlots -- Series A-46)
VRDN 3.08% due 07/15/2028 (a) ..................... 6,090,000
Jefferson Parish, Louisiana Home Mortgage Authority
S/F Mortgage Revenue (Series B) FXRDN:
1,265,300 2.95% due 09/23/2005 .............................. 1,265,300
18,115,100 2.95% due 08/25/2036 .............................. 18,115,100
12,000,000 Jefferson Parish, Louisiana Hospital Service Revenue
(Putters -- Series 522) VRDN 3.05%
due 12/01/2008 (a)(b) ............................. 12,000,000
10,600,000 Lake Charles, Louisiana Habor & Revenue District
(Conco Inc. Project -- Series A) VRDN 3.00%
due 09/01/2029 (a) ................................ 10,600,000
Louisiana Housing Finance Agency Mortgage
Revenue S/F FXRDN:
29,664,704 2.91% due 05/31/2005 .............................. 29,664,704
11,500,000 3.07% due 04/28/2006 .............................. 11,500,000
8,260,000 3.11% due 04/28/2006 .............................. 8,260,000
2,360,000 Louisiana Local Government Environmental Facilities
& Community Development Authority Revenue
(Northwestern State University Student Housing --
Series A) VRDN 3.07% due 08/01/2034 (a) ........... 2,360,000
See Notes to Financial Statements.
69
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Louisiana $ 10,000,000 Louisiana Public Facilities Authority Lease Revenue
(continued) VRDN 3.04% due 06/01/2008 (a) ..................... $ 10,000,000
Louisiana Public Facilities Authority Revenue
(Air Products & Chemicals Project) VRDN:
18,650,000 3.08% due 12/01/2038 (a) .......................... 18,650,000
3,400,000 3.08% due 12/01/2039 (a) .......................... 3,400,000
16,000,000 Louisiana State Offshore Term Authority Deepwater
Port Revenue (1st Stage A-Loop Inc.) DDN 3.00%
due 09/01/2008 (a) ................................ 16,000,000
11,305,000 Louisiana State University & Agricultural &
Mechanical College Board VRDN 3.03%
due 07/01/2032 (a) ................................ 11,305,000
7,875,000 New Orleans, Louisiana IDB M/F Housing Revenue
(LGD Rental Inc. Project) VRDN 3.05%
due 09/01/2038 (a) ................................ 7,875,000
13,490,000 New Orleans, Louisiana IDB M/F Housing Revenue
VRDN 3.09% due 06/02/2008 (a) ..................... 13,490,000
- ------------------------------------------------------------------------------------------------------
Maine -- 760,000 Eastport, Maine IDR (Passamaquoddy Tribe) VRDN
0.3% 3.10% due 11/01/2006 (a) .......................... 760,000
1,270,000 Gray, Maine Revenue (Advance Realty Project)
VRDN 3.03% due 10/01/2011 (a) ..................... 1,270,000
24,255,000 Maine Finance Authority Revenue (Jackson Lab Issue
2002) VRDN 3.07% due 07/01/2031 (a) ............... 24,255,000
6,000,000 Maine State TAN 3.00% due 06/30/2005 ................ 6,013,688
6,295,000 Maine State BAN 3.00% due 06/23/2005 ................ 6,307,588
4,065,000 Trenton, Maine Revenue (The Talaria Co. Project)
VRDN 3.14% due 10/15/2015 (a) ..................... 4,065,000
- ------------------------------------------------------------------------------------------------------
Maryland -- Carroll County, Maryland Revenue (Fairhaven &
0.7% Copper) VRDN:
7,900,000 (Series-A) 3.03% due 01/01/2034 (a) ............... 7,900,000
4,000,000 (Series-B) 3.01% due 01/01/2034 (a) ............... 4,000,000
16,915,000 Maryland State Health & Higher Educational
Facilities Authority Revenue (Adventist Health
Care -- Series A) VRDN 3.02% due 01/01/2035 (a) ... 16,915,000
See Notes to Financial Statements.
70
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Maryland $ 5,000,000 Maryland State Health & Higher Educational
(continued) Facilities Authority Revenue
(Floaters -- Series 825)
VRDN 3.03% due 08/15/2038 (a)(b) .................. $ 5,000,000
Montgomery County, Maryland (Series 2002) CP:
22,500,000 2.17% due 05/05/2005 .............................. 22,500,000
10,000,000 2.02% due 05/10/2005 .............................. 10,000,000
21,000,000 Montgomery County, Maryland EDR (Riderwood
Village Inc. Project) VRDN 3.05%
due 03/01/2034 (a) ................................ 21,000,000
- ------------------------------------------------------------------------------------------------------
Massachusetts -- 5,000,000 Blackstone Valley, Massachusetts Vocational Regional
4.9% School District BAN 3.00% due 07/15/2005 .......... 5,012,103
38,322,000 Chicopee, Massachusetts BAN 3.25% due 11/17/2005..... 38,560,589
4,185,000 Clipper Tax-Exempt Trust Housing Finance Authority
(Series 2000-5) VRDN 3.07% due 06/01/2005 (a)(b)... 4,185,000
9,000,000 Gill-Montague, Massachusetts Regional School
District BAN 2.75% due 07/29/2005 ................. 9,022,647
11,391,500 Harvard, Massachusetts BAN 3.00% due 11/09/2005 ..... 11,456,154
5,092,000 Hatfield, Massachusetts BAN 2.75% due 07/29/2005 .... 5,104,811
8,000,000 King Philip Regional School District BAN 3.50%
due 12/15/2005 .................................... 8,061,416
28,750,500 Massachusetts State (Floater Certificates -- Series
716-D) VRDN 3.02% due 08/01/2018 (a)(b) ........... 28,750,500
14,780,000 Massachusetts State (Merlots -- Series A-51) VRDN
3.07% due 08/01/2020 (a)(b) ....................... 14,780,000
3,950,000 Massachusetts State (Series C) VRDN 3.02%
due 08/01/2030 (a) ................................ 3,950,000
8,850,000 Massachusetts State Development Finance Agency
Revenue (Bancroft School) VRDN 3.05%
due 09/01/2031 (a) ................................ 8,850,000
10,000,000 Massachusetts State Development Finance Agency
Revenue (Fessenden School) VRDN 3.07%
due 08/01/2031 (a) ................................ 10,000,000
12,000,000 Massachusetts State Development Finance Agency
Revenue (Brooksby Village Inc. Project) VRDN
3.00% due 07/01/2032 (a) .......................... 12,000,000
See Notes to Financial Statements.
71
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Massachusetts $ 40,000,000 Massachusetts State Development Finance Agency
(continued) Revenue (Massachusetts Electric Co. -- Series 04)
CP 2.10% due 05/02/2005 ........................... $ 40,000,000
11,400,000 Massachusetts State Development Finance Agency
Revenue (Program IV) CP 2.13% due 05/05/2005 ...... 11,400,000
9,850,000 Massachusetts State Development Finance Agency
Revenue (Cordis Mills LLC) VRDN 3.05%
due 12/01/2032 (a) ................................ 9,850,000
14,470,000 Massachusetts State Development Finance Agency
Revenue (Gordon College) VRDN 3.02%
due 09/01/2032 (a) ................................ 14,470,000
25,000,000 Massachusetts State Development Finance Agency
Revenue (Suffolk University Asset Guaranty)
VRDN 3.10% due 07/01/2032 (a) ..................... 25,000,000
15,415,000 Massachusetts State Development Finance Agency
Revenue (Groton School) VRDN 3.07%
due 03/01/2034 (a) ................................ 15,415,000
2,500,000 Massachusetts State Development Finance Agency
Revenue (Walnut Hill School District) VRDN
3.00% due 07/01/2032 (a) .......................... 2,500,000
4,925,000 Massachusetts State Development Finance Agency
Revenue (Lesley University) VRDN 3.07%
due 07/01/2033 (a) ................................ 4,925,000
Massachusetts State Development Finance Agency
Revenue (Wentworth Institute of Technology)
VRDN:
11,760,000 3.02% due 10/01/2030 (a) .......................... 11,760,000
29,525,000 3.10% due 10/01/2033 (a) .......................... 29,525,000
9,000,000 Massachusetts State Health & Educational Facilities
Authority Revenue (Floaters -- Series 954) VRDN
3.03% due 07/01/2024 (a)(b) ....................... 9,000,000
7,860,000 Massachusetts State Health & Educational Facilities
Authority Revenue (The Boston Home Inc. --
Series B) VRDN 3.02% due 06/01/2032 (a) ........... 7,860,000
See Notes to Financial Statements.
72
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Massachusetts $ 15,585,000 Massachusetts State Health & Educational Facilities
(continued) Authority Revenue (Partners Healthcare --
Series D-3) VRDN 3.00% due 07/01/2038 (a) ......... $ 15,585,000
Massachusetts State Industrial Finance Agency
Revenue PCR (New England Power Co. Project --
Series A) CP:
40,000,000 2.05% due 05/11/2005 .............................. 40,000,000
10,500,000 2.13% due 05/12/2005 .............................. 10,500,000
40,950,000 2.33% due 05/20/2005 .............................. 40,950,000
20,000,000 Massachusetts State Industrial Finance Agency
Revenue PCR (Groton School Issue -- Series B)
VRDN 3.07% due 03/01/2028 (a) ..................... 20,000,000
57,760,000 Massachusetts State Water Resource Authority
(Floaters -- Series 742-D) VRDN 3.02%
due 08/01/2019 (a)(b) ............................. 57,760,000
20,000,000 Mattapoisett, Massachusetts BAN 3.00%
due 09/01/2005 .................................... 20,092,858
16,400,000 Municipal Securities Trust Certificates --
Massachusetts State Port Authority SPL Facility
VRDN 3.07% due 04/28/2016 (a)(b) .................. 16,400,000
4,000,000 Nashoba, Massachusetts Regional School District
BAN 3.50% due 09/02/2005 .......................... 4,017,351
8,000,000 Pembroke, Massachusetts BAN 3.00%
due 08/04/2005 .................................... 8,028,897
8,800,000 Spencer East Brookfield, Massachusetts Regional
School District BAN 2.25% due 05/13/2005 .......... 8,802,338
1,805,000 University of Massachusetts (Building Authority
Project Revenue ROCS RR II R 6016) VRDN
3.02% due 11/01/2015 (a) .......................... 1,805,000
12,341,000 Walpole, Massachusetts BAN 3.25% due 11/03/2005 ..... 12,424,304
16,000,000 Woburn, Massachusetts BAN 3.00% due 10/07/2005 ...... 16,080,723
5,000,000 Worcester, Massachusetts BAN 3.00%
due 09/16/2005 .................................... 5,025,089
- ------------------------------------------------------------------------------------------------------
Michigan -- 6,840,000 Chelsea, Michigan Economic Development Corp.
3.8% Revenue (Silver Maples of Chelsea) VRDN 3.05%
due 05/15/2028 (a) ................................ 6,840,000
See Notes to Financial Statements.
73
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Michigan $ 5,745,000 Chippewa Valley, Michigan Schools (Floaters --
(continued) Series 1081) VRDN 3.03% due 05/01/2034 (a) ........ $ 5,745,000
8,760,000 Dearborn, Michigan Economic Development Corp.
Revenue (Henry Ford Village Inc. Project) VRDN
3.05% due 10/01/2023 (a) .......................... 8,760,000
40,770,000 Detroit, Michigan City School District (Merlots --
Series A-113) VRDN 1.80% due 07/27/2005 (a) ....... 40,770,000
6,290,000 Detroit, Michigan Sewer Disposal Revenue VRDN
3.08% due 07/01/2028 (a) .......................... 6,290,000
2,250,000 Detroit, Michigan Sewer Disposal Revenue (Merlot --
Series B-41) VRDN 3.08% due 07/01/2026 (a)(b) ..... 2,250,000
Detroit, Michigan Sewer Disposal Revenue Municipal
Securities Trust VRDN:
1,155,000 (Series 43) 3.03% due 07/01/2028 (a)(b) ........... 1,155,000
6,500,000 (Series 53-A) 3.03% due 07/01/2032 (a)(b) ......... 6,500,000
3,570,000 Detroit Michigan Water Supply System Revenue
(Putters -- Series 783) VRDN 3.03%
due 01/01/2013 (a)(b) ............................. 3,570,000
25,740,000 Eastern Michigan University Revenue DDN 3.05%
due 06/01/2027 (a) ................................ 25,740,000
85,000,000 Michigan Municipal (Series B-2) BAN 3.00%
due 08/23/2005 .................................... 85,373,644
21,550,000 Michigan Municipal (Series L 58-J) VRDN 2.90%
due 08/23/2005 (a) ................................ 21,550,000
50,000,000 Michigan State BAN 3.50% due 09/30/2005 ............. 50,307,177
15,450,000 Michigan State Higher Educational Facilities
Authority Revenue (Ave Maria School of Law
Project) VRDN 3.05% due 08/01/2026 (a) ............ 15,450,000
2,720,000 Michigan State Higher Educational Facilities
Authority Revenue Davenport University Project)
VRDN 3.01% due 08/01/2027 (a) ..................... 2,720,000
65,000,000 Michigan State Hospital Finance Authority Revenue
(Series E) VRDN 3.02% due 12/01/2030 (a) .......... 65,000,000
12,995,000 Michigan State Hospital Finance Authority
Revenue (Merlots -- Series K) VRDN 3.08%
due 11/15/2023 (a)(b) ............................. 12,995,000
See Notes to Financial Statements.
74
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Michigan $ 15,000,000 Michigan State Hospital Finance Authority
(continued) Revenue (Crittenton -- Series A) VRDN 3.05%
due 03/01/2030 (a) ................................ $ 15,000,000
4,230,000 Michigan State Strategic Fund Limited Obligation
Revenue (Weller Truck Parts Project) VRDN 3.15%
due 10/01/2029 (a) ................................ 4,230,000
3,400,000 Michigan State Strategic Fund Limited Obligation
Revenue (AVL North America Inc. Project) VRDN
3.20% due 04/01/2011 (a) .......................... 3,400,000
6,450,000 Michigan State Strategic Fund Limited Obligation
Revenue (Sur-Flo Plastics Inc. Project) VRDN
3.15% due 08/01/2025 (a) .......................... 6,450,000
2,325,000 Michigan State Strategic Fund Limited Obligation
Revenue (WE Upjohn Institute Project) VRDN
3.01% due 06/01/2012 (a) .......................... 2,325,000
Michigan State Strategic Fund Limited Obligation
Revenue (Detroit Symphony) DDN:
19,200,000 (Series A) 3.05% due 06/01/2031 (a) ............... 19,200,000
10,550,000 (Series B) 3.05% due 06/01/2031 (a) ............... 10,550,000
2,700,000 Michigan State Strategic Fund Limited Obligaton
Revenue (Dow Chemical Project) CP 2.43%
due 05/02/2005 .................................... 2,700,000
7,600,000 Municipal Securities Trust Certificates (Class A --
Series 2001 -- 166 Detroit Michigan
Sewer Disposal Revenue) VRDN 3.05%
due 12/15/2021 (a)(b) ............................. 7,600,000
16,335,000 Northern Michigan University Revenue DDN 3.05%
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 3.15% 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 3.05% due 08/01/2020 (a) .... 9,040,000
5,805,000 Oakland University, Michigan Revenue (ROCS RR II
R 2154) VRDN 3.02% due 05/15/2022 (a)(b) .......... 5,805,000
See Notes to Financial Statements.
75
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Michigan $ 4,300,000 Sturgis, Michigan Public School District (Putters --
(continued) Series 728) VRDN 3.03% due 11/01/2012 (a)(b) ...... $ 4,300,000
11,755,000 Wayne County, Michigan Airport Authority
Revenue (ROCS RR II R 353) VRDN 3.03%
due 12/01/2017 (a)(b) ............................. 11,755,000
- ------------------------------------------------------------------------------------------------------
Minnesota -- 16,200,000 Dakota County, Minnesota Community
1.5% Development Agency M/F Housing Revenue
(Regatta Commons Project -- Series A) DDN
3.15% due 01/01/2038 (a) .......................... 16,200,000
10,000,000 Dakota County, Minnesota Community Development
Agency M/F Housing Revenue (Brentwood Hills
Apartments Project -- Series A) DDN 3.15%
due 09/01/2038 (a) ................................ 10,000,000
17,467,500 Duluth, Minnesota EDA Health Care Facilities
Revenue (Floaters -- Series 895) VRDN 3.05%
due 02/15/2020 (a)(b) ............................. 17,467,500
2,800,000 Hennepin County, Minnesota Housing and
Redevelopment Authority M/F Revenue (Stone
Arch Apartments Project) VRDN 3.05%
due 04/15/2035 (a) ................................ 2,800,000
26,476,000 Minneapolis St. Paul (Series A) CP 2.05%
due 05/16/2005 .................................... 26,476,000
2,500,000 Minneapolis, Minnesota Revenue (Minnehaha
Academy Project) DDN 3.15% due 05/01/2026 (a)...... 2,500,000
12,500,000 Minnesota Rural Water Finance Authority (Public
Project -- Series B) BAN 3.00% due 10/01/2005 ..... 12,564,603
2,170,000 Minnesota State (ROCS RR II R 4065) VRDN 3.03%
due 08/01/2023 (a)(b) ............................. 2,170,000
Rochester, Minnesota Health Care Facilities (Mayo
Foundation) CP:
11,100,000 (Series C) 2.05% due 05/10/2005 ................... 11,100,000
20,000,000 (Series 00-C) 2.03% due 05/11/2005 ................ 20,000,000
14,000,000 (Series 00-C) 2.03% due 05/20/2005 ................ 14,000,000
13,750,000 (Series 01-B) 2.03% due 05/20/2005 ................ 13,750,000
5,000,000 (Series 01-B) 2.08% due 05/20/2005 ................ 5,000,000
See Notes to Financial Statements.
76
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Minnesota $ 15,000,000 (Series 01-D) 2.05% due 05/10/2005 .................. $ 15,000,000
(continued) 4,100,000 (Series 88-E) 2.08% due 05/20/2005 .................. 4,100,000
17,550,000 University of Minnesota (Series A) VRDN 3.07%
due 01/01/2034 (a) ................................ 17,550,000
- ------------------------------------------------------------------------------------------------------
Mississippi -- 5,450,000 Medical Center Educational Building Corp.
0.7% Mississippi Revenue (Pediatric Facilities Project)
VRDN 3.00% due 06/01/2034 (a) ..................... 5,450,000
10,000,000 Mississippi Business Finance Corp. Solid Waste
Disposal Revenue (Mississippi Power Co. Project)
DDN 3.12% due 05/01/2028 (a) ...................... 10,000,000
12,500,000 Mississippi Home Corp. Lease Purchase Revenue
VRDN 3.09% due 10/01/2007 (a) ..................... 12,500,000
28,255,000 Mississippi Home Corp. S/F Revenue (Floaters --
Series 714) VRDN 3.09% due 10/03/2005 (a)(b) ...... 28,255,000
25,388,000 Mississippi State Hospital Equipment & Facilities
Authority Revenue (North Mississippi Health
Services -- Series 1) CP 2.40% due 06/09/2005 ..... 25,388,000
11,750,000 Mississippi State Hospital Equipment & Facilities
Authority Revenue (North Mississippi Health
Services -- Series 1) VRDN 3.03%
due 05/15/2030 (a) ................................ 11,750,000
- ------------------------------------------------------------------------------------------------------
Missouri -- 3,600,000 Cabool, Missouri IDA IDR (Ameriduct Worldwide
2.1% Inc. Project) VRDN 3.23% due 05/01/2010 (a) ....... 3,600,000
4,500,000 Kansas City, Missouri IDA Revenue (Ewing Marion
Kaufman Foundation) DDN 3.05%
due 04/01/2027 (a) ................................ 4,500,000
32,100,000 Missouri Higher Educational Loan Authority
(Student Loan Revenue -- Series B) VRDN 3.03%
due 06/01/2020 (a) ................................ 32,100,000
14,815,000 Missouri State Development Finance Board Lease
Revenue (Missouri Associate Municipal Utilities
Lease) DDN 3.10% due 06/01/2033 (a) ............... 14,815,000
6,000,000 Missouri State Housing Development Community S/F
Mortgage Revenue FXRDN 2.99% due 05/15/2006........ 6,000,000
See Notes to Financial Statements.
77
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Missouri $ 26,550,000 Missouri State Health & Higher Educational Facilities
(continued) Authority Revenue (Bethesda Health Group --
Series A) DDN 3.10% due 08/01/2031 (a) ............ $ 26,550,000
48,700,000 Missouri State Health & Higher Educational Facilities
Authority Revenue (BJC Health System -- Series B)
DDN 3.05% due 05/15/2034 (a) ...................... 48,700,000
Missouri State Health & Higher Educational Facilities
Authority Revenue (Pooled Hospital Loan Program)
VRDN:
3,965,000 (Series B) 3.26% due 08/01/2029 (a) ............... 3,965,000
3,500,000 (Series C) 3.10% due 08/01/2034 (a) ............... 3,500,000
25,900,000 Missouri State Health & Higher Educational Facilities
Authority Revenue (Christian Brothers -- Series A)
DDN 3.10% due 10/01/2032 (a) ...................... 25,900,000
18,040,000 Missouri State Health & Higher Educational Facilities
Authority Revenue (Louis University -- Series A)
DDN 3.10% due 10/01/2016 (a) ...................... 18,040,000
6,800,000 Missouri State Health & Educational Facilities
Authority Revenue (Bethesda Health Group --
Series A) DDN 3.10% due 08/01/2031 (a) ............ 6,800,000
9,370,000 Missouri State Health & Educational Facilities
Authority Revenue (Pooled Hospital -- Series B)
VRDN 3.26% due 08/01/2029 (a) ..................... 9,370,000
3,175,000 Missouri State Health & Educational Facilities
Authority Revenue (Saint Louis University) DDN
3.10% due 07/01/2032 (a) .......................... 3,175,000
21,880,000 Missouri State Health & Educational Facilities
Authority Revenue (Saint Louis University --
Series B) DDN 3.10% due 10/01/2024 (a) ............ 21,880,000
7,585,000 Missouri State Health & Educational Facilities
Authority Revenue (Ranken Tech College) DDN
3.10% due 11/15/2017 (a) .......................... 7,585,000
5,400,000 Missouri State Health & Educational Facilities
Authority Revenue (De Smet Jesuit High School)
DDN 3.10% due 11/01/2027 (a) ...................... 5,400,000
See Notes to Financial Statements.
78
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Missouri $ 4,300,000 Saint Charles County, Missouri IDA M/F Revenue
(continued) (Peine Lakes Apartments Project) VRDN 3.05%
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) 3.05% due 03/15/2036 (a) ............... 13,250,000
4,050,000 (Series C) 3.08% due 09/15/2036 (a) ............... 4,050,000
1,035,000 Sikeston, Missouri IDA Revenue (Heritage American
Homes LP/North Ridge Homes Inc. Project) VRDN
3.14% due 07/01/2009 (a) .......................... 1,035,000
- ------------------------------------------------------------------------------------------------------
Montana -- 10,940,000 Helena, Montana Higher Educational Revenue
0.2% (Carroll College Campus Housing) DDN 3.10%
due 10/01/2032 (a) ................................ 10,940,000
9,250,000 Montana State Board Investment Municipal Finance
FXRDN 2.60% due 03/01/2006 ........................ 9,250,000
- ------------------------------------------------------------------------------------------------------
Nebraska -- 38,573,000 Lincoln, Nebraska Electric System Revenue CP 2.40%
0.8% due 05/09/2005 .................................... 38,573,000
11,000,000 Nebraska Public Power District Revenue CP 2.40%
due 05/09/2005 .................................... 11,000,000
Nebraska Public Power District Revenue Eagle
VRDN:
3,235,000 (2004-0014) 3.03% due 01/01/2035 (a) .............. 3,235,000
3,335,000 (2004-0016) 3.03% due 01/01/2035 (a) .............. 3,335,000
Omaha Public Power District Nebraska Electric
Revenue (Series A) CP:
25,000,000 2.05% due 05/04/2005 .............................. 25,000,000
25,500,000 2.20% due 05/09/2005 .............................. 25,500,000
- ------------------------------------------------------------------------------------------------------
Nevada -- 19,400,000 Clark County, Nevada IDR (Nevada Cogeneration I
0.7% Project) DDN 3.10% due 11/01/2020 (a) ............. 19,400,000
5,960,000 Clark County, Nevada (ROCS RR II R 1035) VRDN
3.03% due 06/01/2021 (a) .......................... 5,960,000
5,880,000 Clark County, Nevada School District (Merlots --
Series B02) VRDN 3.08% due 06/15/2019 (a)(b) ...... 5,880,000
See Notes to Financial Statements.
79
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Nevada $ 7,150,000 Director State, Nevada Business & Industry Solid
(continued) Waste Disposal Revenue (Republic Service Inc.
Project) VRDN 3.34% due 12/01/2034 (a) ............ $ 7,150,000
11,290,000 Eagle Tax-Exempt Trust -- Clark County, Nevada
School District (Series 962804) VRDN 3.03%
due 06/15/2015 (a)(b) ............................. 11,290,000
6,000,000 Henderson, Nevada Public Housing Revenue
(Pueblo II -- Series B) VRDN 3.12%
due 08/01/2026 (a) ................................ 6,000,000
8,390,000 Las Vegas, Nevada Convention & Visitors Authority
Revenue (Putters -- Series 802) VRDN 3.03%
due 01/01/2013 (a)(b) ............................. 8,390,000
9,980,000 Las Vegas Valley, Nevada Water District (Merlots --
B-10) VRDN 3.08% due 06/01/2024 (a)(b) ............ 9,980,000
16,855,000 Truckee Meadows, Nevada Water Authority Revenue
(Municipal Security Trust Receipts -- Series SGA
137) VRDN 3.05% due 07/01/2030 (a)(b) ............. 16,855,000
- ------------------------------------------------------------------------------------------------------
New 11,000,000 New Hampshire Health & Educational Facilities
Hampshire -- Authority Revenue (Floaters -- Series 866) VRDN
0.9% 3.05% due 08/15/2021 (a) .......................... 11,000,000
5,475,000 New Hampshire Higher Educational & Health
Facility Authority Revenue (Floaters -- Series 772)
VRDN 3.05% due 01/10/2017 (a)(b) .................. 5,475,000
9,890,000 New Hampshire Higher Educational & Health
Facility Authority Revenue (Wentworth Douglass
Hospital Radianassurance) DDN 3.15%
due 01/01/2031 (a) ................................ 9,890,000
New Hampshire State Business Finance Authority
PCR (NEPCO) CP:
46,000,000 2.10% due 05/09/2005 .............................. 46,000,000
35,850,000 2.18% due 05/25/2005 .............................. 35,850,000
3,480,000 New Hampshire State Business Finance Authority
Industrial Facilities Revenue (Wiggins Airways Inc.)
VRDN 3.07% due 12/01/2033 (a) ..................... 3,480,000
See Notes to Financial Statements.
80
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
New Hampshire $ 2,240,000 New Hampshire State Business Finance Authority
(continued) Industrial Facilities Revenue (JMT Properties LLC)
VRDN 3.09% due 07/01/2018 (a) ..................... $ 2,240,000
2,625,000 New Hampshire State Business Finance Authority
Revenue (Montgomery Wire Corp.) VRDN 3.07%
due 02/01/2014 (a) ................................ 2,625,000
- ------------------------------------------------------------------------------------------------------
New Jersey -- 11,325,000 New Jersey State Transportation Trust Fund Authority
0.1% (Eagle 72005-0001 -- Series A) VRDN 3.02%
due 12/15/2021 (a)(b) ............................. 11,325,000
- ------------------------------------------------------------------------------------------------------
New Mexico -- 5,160,000 Bernalillo County, New Mexico Gross Receipts
0.7% Tax Revenue (Macon Trusts) VRDN 3.03%
due 04/01/2027 (a)(b) ............................. 5,160,000
3,000,000 New Mexico Finance Authority Revenue (Floaters --
Series 949) VRDN 3.01% due 06/15/2012 (a)(b) ...... 3,000,000
New Mexico Mortgage Finance Authority S/F
FXRDN:
53,173,631 2.87% due 03/01/2006 .............................. 53,173,631
13,417,311 2.86% due 09/23/2005 .............................. 13,417,311
15,000,000 New Mexico State (Floaters Trust -- Series L38)
VRDN 3.08% due 06/30/2005 (a)(b) .................. 15,000,000
- ------------------------------------------------------------------------------------------------------
New York -- 20,400,000 Binghamton, New York BAN 3.00% due 09/22/2005 ....... 20,502,857
3.4% 5,000,000 Commack, New York Central School District BAN
3.00% due 11/18/2005 .............................. 5,025,622
10,000,000 Hilton, New York Central School District BAN
3.00% due 06/23/2005 .............................. 10,019,397
9,265,000 Long Island Power Authority, New York Electric
System Revenue (Floaters -- Series 822) VRDN
3.01% due 09/01/2029 (a)(b) ....................... 9,265,000
60,715,000 Metropolitan Transportation Authority, New York
Revenue (Floaters -- Series 823-D) VRDN 3.01%
due 11/15/2023 (a)(b) ............................. 60,715,000
35,000,000 New York, New York (ROCS RR II R 251) VRDN
3.06% due 12/15/2019 (a)(b) ....................... 35,000,000
See Notes to Financial Statements.
81
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
New York $106,500,000 New York, New York City IDA Revenue Liberty
(continued) (1 Bryant Park LLC -- Series B) DDN 3.07%
due 11/01/2039 (a) ................................ $ 106,500,000
40,000,000 New York, New York City IDA Revenue Liberty
(1 Bryant Park LLC -- Series A) VRDN 2.97%
due 11/01/2039 (a) ................................ 40,000,000
30,315,000 Rochester, New York (Series II) BAN 3.00%
due 10/21/2005 .................................... 30,471,470
10,000,000 Rochester, New York (Series III) RAN 3.00%
due 06/30/2005 .................................... 10,019,530
7,620,074 Sidney, New York Central School District BAN 3.00%
due 06/30/2005 .................................... 7,635,555
50,000,000 Suffolk County, New York (Series I) TAN 3.25%
due 08/16/2005 .................................... 50,190,936
Ulster County, New York BAN:
25,000,000 2.75% due 06/10/2005 .............................. 25,030,986
14,000,000 3.00% due 11/18/2005 .............................. 14,071,742
- ------------------------------------------------------------------------------------------------------
North 20,000,000 North Carolina Housing Finance Agency (Home
Carolina -- Ownership -- Series 17-C) VRDN 3.03%
1.0% due 07/01/2033 (a) ................................ 20,000,000
18,135,000 North Carolina Medical Care Community Retirement
Revenue (Adult Community Services -- Series B)
DDN 3.05% due 11/15/2009 (a) ...................... 18,135,000
24,370,000 North Carolina Medical Care Community Health
Care Facilities Revenue (Carol Woods Project) DDN
3.07% due 04/01/2031 (a) .......................... 24,370,000
42,010,000 North Carolina State GO VRDN 3.00%
due 06/01/2019 (a) ................................ 42,010,000
23,460,000 North Carolina State (Eagle 7200-5021 CL A) VRDN
3.03% due 03/01/2020 (a)(b) ....................... 23,460,000
- ------------------------------------------------------------------------------------------------------
North Dakota -- 32,880,000 Ward County, North Dakota Health Care Facilities
0.3% Revenue (Trinity Obligation Group -- Series A)
DDN 3.10% due 07/01/2029 (a) ...................... 32,880,000
- ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
82
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Ohio -- $ 8,000,000 ABN-AMRO Muni Tops -- Cincinnati Ohio City
5.0% School District (Series 2003-34) VRDN 3.03%
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
3.03% due 06/01/2012 (a)(b) ....................... 5,035,000
4,995,000 ABN-AMRO Muni Tops -- Certificates Trust (Series
2004-23) VRDN 3.03% due 12/01/2011 (a)(b) ......... 4,995,000
10,000,000 Akron, Ohio BAN 2.75% due 11/03/2005 ................ 10,042,500
1,705,000 Barberton, Ohio BAN 4.00% due 04/12/2006 ............ 1,723,865
2,100,000 Brunswick, Ohio BAN 2.50% due 05/26/2005 ............ 2,101,201
5,295,000 Butler County, Ohio Hospital Facilities Revenue
(Middletown Regional Hosptial) VRDN 3.03%
due 11/01/2010 (a) ................................ 5,295,000
5,000,000 Cincinnati, Ohio City School District (Series 2004-34)
VRDN 3.02% due 12/01/2031 (a) ..................... 5,000,000
4,420,000 Cincinnati, Ohio City School District (Series 682)
VRDN 3.03% due 12/01/2011 (a) ..................... 4,420,000
5,000,000 Cleveland-Cuyahoga County, Ohio Port Authority
Cultural Facilities Revenue (Playhouse
Square Foundation Project) VRDN 3.00%
due 11/15/2034 (a) ................................ 5,000,000
9,300,000 Clinton County, Ohio Hospital Revenue
(McCullough-Hydro Project -- Series B-1) VRDN
3.02% due 11/01/2020 (a) .......................... 9,300,000
9,300,000 Clinton County, Ohio Hospital Revenue (Series D-1)
VRDN 3.12% due 12/01/2015 (a) ..................... 9,300,000
3,064,000 Clipper Tax-Exempt Trust -- Ohio Housing
Finance Agency (Series 2000-4) VRDN 3.11%
due 06/01/2005 (a)(b) ............................. 3,064,000
5,225,000 Columbus, Ohio City School District (ROCS RR II R
2128) VRDN 3.02% due 12/01/2021 (a) ............... 5,225,000
10,000,000 Columbus, Ohio Regional Apartment Authority
Revenue (Series A) VRDN 3.01%
due 01/01/2030 (a) ................................ 10,000,000
See Notes to Financial Statements.
83
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Ohio $ 4,250,000 Cuyahoga County, Ohio Civic Facilities Revenue
(continued) Center for Families & Children VRDN 3.07%
due 06/01/2024 (a) ................................ $ 4,250,000
9,825,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(Jennings Center) VRDN 3.07% due 11/01/2023 (a).... 9,825,000
7,737,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(Metrohealth System Project) VRDN 3.05%
due 03/01/2033 (a) ................................ 7,737,000
4,900,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(Sisters of Charity Health System) VRDN 3.03%
due 11/01/2030 (a) ................................ 4,900,000
2,105,000 Cuyahoga County, Ohio M/F Revenue (St. Vitus
Village Apartments Project) VRDN 3.07%
due 06/01/2022 (a) ................................ 2,105,000
Cuyahoga County, Ohio Revenue (Cleveland Clinic)
DDN:
31,500,000 (Series B-1) 3.10% due 01/01/2039 (a) ............. 31,500,000
12,500,000 (Series B-3) 3.10% due 01/01/2039 (a) ............. 12,500,000
4,655,000 Deerfield Township, Ohio (Tax Increment Revenue --
Series B) VRDN 3.03% due 12/01/2022 (a) ........... 4,655,000
3,070,000 Dover, Ohio BAN 3.75% due 04/06/2006 .............. 3,097,816
3,500,000 Eagle Tax-Exempt Trust -- Ohio Water Development
Authority (Ohio Edison) VRDN 3.02%
due 07/01/2015 (a)(b) ............................. 3,500,000
13,800,000 Eagle Tax-Exempt Trust -- Ohio Edison (Series
953501) VRDN 3.02% due 07/01/2015 (a)(b) .......... 13,800,000
15,000,000 Eagle Tax-Exempt Trust -- Cleveland Water (Series
983501) VRDN 3.02% due 01/01/2025 (a)(b) .......... 15,000,000
22,065,000 Eagle Tax-Exempt Trust -- Ohio State Turnpike
Revenue (Series 983502) VRDN 3.02%
due 02/15/2020 (a)(b) ............................. 22,065,000
8,725,000 Franklin County, Ohio Hospital Revenue (Children's
Hospital) VRDN 3.00% due 11/01/2025 (a) ........... 8,725,000
10,305,000 Franklin County, Ohio Hospital Revenue (Children's
Hospital Project Ambac) VRDN 3.00%
due 11/01/2033 (a) ................................ 10,305,000
See Notes to Financial Statements.
84
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Ohio $ 4,160,000 Franklin County, Ohio M/F Revenue
(continued) (Community Housing Network) VRDN 3.07%
due 03/01/2027 (a) ................................ $ 4,160,000
7,105,000 Geauga County, Ohio Revenue (Sisters of Notre Dame
Project) VRDN 3.07% due 08/01/2016 (a) ............ 7,105,000
20,245,000 Greene County, Ohio Sewer System Revenue (ROCS
RR II R 347) VRDN 3.02% due 12/01/2025 (a)(b) ..... 20,245,000
13,750,000 Hamilton County, Ohio Hospital Facilities Revenue
(Children's Hospital Medical Center) VRDN 2.99%
due 05/15/2017 (a) ................................ 13,750,000
10,615,000 Hamilton County, Ohio Parking System Revenue
VRDN 2.99% due 12/01/2026 (a) ..................... 10,615,000
20,305,000 Hamilton County, Ohio Student Housing Revenue
(Stratford Heights Project) VRDN 3.07%
due 08/01/2036 (a) ................................ 20,305,000
11,570,000 Hamilton County, Ohio Student Housing Revenue
(Block 3 Project) VRDN 3.07% due 08/01/2036 (a) ... 11,570,000
4,525,000 Henry County, Ohio BAN 3.25% due 03/23/2006 ......... 4,552,558
7,500,000 Huron County, Ohio Hospital Facilities Revenue
(Norwalk Area Health System) VRDN 3.00%
due 12/01/2027 (a) ................................ 7,500,000
10,000,000 Jackson, Ohio Hospital Facilities Revenue (Health
System Inc. Radianassurance) VRDN 3.05%
due 10/01/2029 (a) ................................ 10,000,000
5,000,000 Kent, Ohio BAN 2.75% due 10/20/2005 ................. 5,019,634
4,600,000 Licking County, Ohio IDR (Renosol Corp. Project)
VRDN 3.15% 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 3.00% due 09/15/2005 ........................ 3,655,000
4,700,000 Mason, Ohio BAN 2.75% due 05/26/2005 ................ 4,703,483
3,000,000 Mayfield Heights, Ohio BAN 3.25% due 01/26/2006 ..... 3,018,419
1,695,000 Mentor, Ohio IDR (Risch Investments/Roll-Kraft
Project) VRDN 3.15% due 08/01/2017 (a) ............ 1,695,000
See Notes to Financial Statements.
85
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Ohio $ 11,435,000 Middleburg Heights, Ohio Hospital Revenue
(continued) (Southwest General Health) VRDN 3.03%
due 08/15/2022 (a) ................................ $ 11,435,000
2,600,000 Montgomery County, Ohio EDR (Benjamin &
Marian Project -- Series A) VRDN 3.07%
due 04/01/2011 (a) ................................ 2,600,000
Montgomery County, Ohio Health Revenue (Miami
Valley Hospital -- Series 1998-B) CP:
50,000,000 2.06% due 05/06/2005 .............................. 50,000,000
50,000,000 2.45% due 06/10/2005 .............................. 50,000,000
46,700,000 Montgomery County, Ohio Health Revenue (Miami
Valley Hospital -- Series 1998-A) DDN 3.05%
due 11/15/2022 (a) ................................ 46,700,000
12,000,000 Municipal Securities Trust Certificates (Class A --
Series 104) VRDN 3.05% due 11/14/2017 (a)(b) ...... 12,000,000
3,000,000 North Canton, Ohio Water System BAN 3.25%
due 02/15/2006 .................................... 3,016,253
1,300,000 Ohio State Air Quality Development Authority
Revenue (Cincinnati Gas & Electric -- Series B)
VRDN 3.25% due 09/01/2030 (a) ....................... 1,300,000
3,200,000 Ohio State Building Authority (Putters -- Series 790)
VRDN 3.03% due 10/01/2012 (a) ..................... 3,200,000
7,320,000 Ohio State EDR (Goodwill Industrial Miami Valley
Project) VRDN 3.03% due 06/01/2023 (a) ............ 7,320,000
4,000,000 Ohio State Higher Educational Facilities Revenue
(Ashland University Project) VRDN 3.05%
due 09/01/2024 (a) ................................ 4,000,000
1,680,000 Ottawa County, Ohio IDR (Adrian Sand & Stone Inc.
Project) VRDN 3.13% due 10/01/2008 (a) ............ 1,680,000
1,975,000 Painesville, Ohio (Series 2005-1) BAN 3.25%
due 03/23/2006 .................................... 1,986,161
7,780,000 Port Authority of Columbiana County, Ohio IDR
(GEI of Columbiana Inc. Project) VRDN 3.13%
due 06/01/2022 (a) ................................ 7,780,000
2,370,000 Princeton, Ohio City School District (Series 50-A)
VRDN 3.02% due 12/01/2030 (a) ..................... 2,370,000
See Notes to Financial Statements.
86
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Ohio $ 6,400,000 Richland County, Ohio Revenue (Mansfield Area
(continued) YMCA Project) VRDN 3.07% due 11/01/2019 (a) ....... $ 6,400,000
4,000,000 Richland County, Ohio Sanitary Sewer BAN 3.00%
due 11/09/2005 .................................... 4,022,072
8,975,000 Salem, Ohio Civic Facilities Revenue (Salem
Community Center Inc. Project) VRDN 3.07%
due 06/01/2027 (a) ................................ 8,975,000
South Lebanon Villiage, Ohio M/F Revenue
(Housing -- Pedcor Invests -- Cedars) VRDN:
7,700,000 (Series A) 3.20% due 09/01/2038 (a) ............... 7,700,000
1,100,000 (Series B) 3.05% due 09/01/2038 (a) ............... 1,100,000
1,600,000 Springboro, Ohio BAN 2.75% due 05/26/2005 ........... 1,601,186
8,375,000 University of Toledo, Ohio General Receipts DDN
3.05% due 06/01/2032 (a) .......................... 8,375,000
3,990,000 Willoughby, Ohio IDR (Kennedy Group Inc. Project)
VRDN 3.13% due 09/01/2018 (a) ..................... 3,990,000
1,540,000 Wood County, Ohio IDR (GHT Property
Management LLC Project) VRDN 3.14%
due 08/01/2019 (a) ................................ 1,540,000
2,085,000 Wood County, Ohio IDR (TL INDS & AMPP Inc.
Project) VRDN 3.13% due 05/01/2011 (a) ............ 2,085,000
- ------------------------------------------------------------------------------------------------------
Oklahoma -- Cleveland County, Oklahoma Development Authority
1.6% S/F Revenue FXRDN:
4,100,000 2.95% due 05/25/2005 .............................. 4,100,000
4,185,000 3.01% due 04/25/2006 .............................. 4,185,000
19,698,349 Comanche County, Oklahoma Home Finance S/F
Revenue Notes (Series A) FXRDN 2.92%
due 04/03/2006 .................................... 19,698,349
3,634,251 Comanche County, Oklahoma Home Finance S/F
Revenue Notes (Series A) FXRDN 2.53%
due 05/02/2005 .................................... 3,634,251
7,445,451 Grand Gateway Home Finance Authority S/F
Mortgage Revenue (Series A) FXRDN 2.87%
due 02/01/2006 .................................... 7,445,451
See Notes to Financial Statements.
87
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Oklahoma $ 5,415,000 Oklahoma County, Oklahoma Finance Authority
(continued) Revenue (Oklahoma County Housing Preservation)
VRDN 3.15% due 01/01/2033 (a) ..................... $ 5,415,000
21,410,000 Oklahoma Development Finance Authority Revenue
(Inverness Village -- Continuing Care Retirement --
Series C) DDN 3.10% due 02/01/2012 (a) ............ 21,410,000
5,000,000 Oklahoma Development Finance Authority Revenue
(ConocoPhillips Co. Project) FXRDN 2.42%
due 12/01/2005 .................................... 5,000,000
2,600,000 Oklahoma City, Oklahoma (Putters -- Series 743)
VRDN 3.03% due 03/01/2013 (a)(b) .................. 2,600,000
Oklahoma County, Oklahoma Home Finance
Authority S/F Mortgage Revenue (Series A)
FXRDN:
5,492,094 2.93% due 05/02/2005 .............................. 5,492,094
42,356,793 2.93% due 05/01/2006 .............................. 42,356,793
47,848,887 3.12% due 05/01/2006 .............................. 47,848,887
10,039,142 Oklahoma County, Oklahoma Home Finance
Authority S/F Mortgage Revenue (Series D) FXRDN
2.87% due 02/01/2006 .............................. 10,039,142
Oklahoma Housing Finance Agency S/F Revenue
FXRDN:
4,079,000 2.85% due 05/25/2005 .............................. 4,079,000
4,146,000 2.85% due 08/31/2005 .............................. 4,146,000
9,000,000 Payne County, Oklahoma EDA Student Housing
Revenue (Student Project -- Series B) VRDN 3.04%
due 07/01/2037 (a) ................................ 9,000,000
4,495,000 Tulsa County, Oklahoma Home Finance Authority S/F
Mortgage Revenue (Floaters -- Series 1020) VRDN
3.09% due 04/03/2006 (a)(b) ....................... 4,495,000
2,180,000 Tulsa County, Oklahoma Home Finance Authority S/F
Mortgage Revenue (Series A) FXRDN 2.92%
due 04/03/2006 .................................... 2,180,000
- ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
88
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Oregon -- $ 10,000,000 ABN-AMRO Muni Tops -- Portland, Oregon (Series
1.5% 2001-4) VRDN 3.03% due 06/01/2009 (a)(b) .......... $ 10,000,000
3,827,000 Clackamas County, Oregon Health Facilities
Authority Hospital Revenue (Floaters -- Series 689)
VRDN 3.07% due 12/25/2005 (a)(b) .................. 3,827,000
8,250,000 Multnomah County, Oregon Hospital Facilities
Authority Revenue (Holladay Park Plaza Revenue
Project) DDN 3.06% due 11/15/2033 (a) ............. 8,250,000
25,000,000 Oregon State (Floaters Trust -- Series L73J --
Region D) VRDN 3.08% due 06/30/2005 (a)(b) ........ 25,000,000
4,995,000 Oregon State (ROCS RR II R 6001) VRDN 3.03%
due 08/01/2022 (a)(b) ............................. 4,995,000
7,000,000 Oregon State Facilities Authority Revenue (Oregon
Episcopal School Project -- Series A) VRDN 3.07%
due 10/01/2034 (a) ................................ 7,000,000
Oregon State EDR (Newsprint Co. Project) DDN:
21,900,000 (Series 197) 3.08% due 08/01/2025 (a) ............. 21,900,000
16,070,000 (Series 197) 3.08% due 12/01/2025 (a) ............. 16,070,000
18,600,000 (Series 202) 3.08% due 04/01/2026 (a) ............. 18,600,000
13,000,000 (Series 203) 3.08% due 12/01/2026 (a) ............. 13,000,000
5,360,000 Oregon State Health, Housing, Educational &
Cultural Facilities Authority (Assumption
Village Project -- Series A) VRDN 3.02%
due 03/01/2033 (a) ................................ 5,360,000
Oregon State Health Sciences University Revenue
(Oshu Medical Group Project) VRDN:
15,000,000 (Series A) 3.01% due 07/01/2033 (a) ............... 15,000,000
24,000,000 (Series B) 3.01% due 07/01/2033 (a) ............... 24,000,000
1,730,000 Portland, Oregon Sewer Systems Revenue (Putters --
Series 614) VRDN 3.03% due 10/01/2012 (a)(b) ...... 1,730,000
7,750,000 Portland, Oregon EDR (Broadway Project -- Series A)
VRDN 3.02% due 04/01/2035 (a) ..................... 7,750,000
4,255,000 Tri-City, Oregon Revenue (Putters -- Series 787)
VRDN 3.03% due 03/01/2013 (a)(b) .................. 4,255,000
- ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
89
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Pennsylvania -- $ 22,395,000 Allegheny County, Pennsylvania IDA Health &
2.4% Housing Facilities Revenue (Longwood -- Series B)
DDN 3.05% due 07/01/2027 (a) ...................... $ 22,395,000
11,455,000 Allegheny County, Pennsylvania (Series C-51) FXRDN
2.80% due 08/01/2005 .............................. 11,455,000
13,250,000 Delaware County, Pennsylvania IDA (Exelon
Generating -- Series 01-A) CP 2.32%
due 05/20/2005 .................................... 13,250,000
47,000,000 Emmaus, Pennsylvania General Authority Revenue
(Loan Program -- Series A) VRDN 3.02%
due 03/01/2030 (a) ................................ 47,000,000
Emmaus, Pennsylvania General Authority Revenue
(Local Government Pool) VRDN:
2,300,000 (Series H-7) 3.02% due 03/01/2024 (a) ............. 2,300,000
2,400,000 (Series E-7) 3.02% due 03/01/2024 (a) ............. 2,400,000
8,725,000 Erie County, Pennsylvania Hospital Authority
Revenue (Floaters -- Series 820) VRDN 3.03%
due 07/01/2022 (a) ................................ 8,725,000
4,000,000 Montgomery County, Pennsylvania IDA PCR VRDN
3.05% due 10/01/2034 (a) .......................... 4,000,000
9,610,000 New Garden, Pennsylvania General Authority
Municipal Revenue (Municipal Pooled Financing
Program -- Series I) VRDN 3.00%
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 3.00%
due 12/01/2033 (a) ................................ 44,800,000
13,945,000 Pennsylvania State (Putters -- Series 512) VRDN
3.01% due 09/01/2014 (a)(b) ....................... 13,945,000
8,100,000 Pennsylvania State Economic Development Financing
Authority (Wastewater Treatment Revenue
(Sunoco Inc. R & M Project -- Series A) VRDN
3.17% due 10/01/2034 (a) .......................... 8,100,000
See Notes to Financial Statements.
90
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Pennsylvania $ 5,850,000 Pennsylvania State Public School Building Authority
(continued) Lease Revenue (Putters -- Series 798) VRDN
3.03% due 02/01/2013 (a)(b) ....................... $ 5,850,000
8,430,000 Pennsylvania State Turnpike Community Revenue
(Series 2004-29) VRDN 3.02% due 12/01/2034 (a) .... 8,430,000
20,610,000 Pennsylvania State Turnpike Community Revenue
(Series B) VRDN 3.01% due 12/01/2012 (a) .......... 20,610,000
9,364,500 Philadelphia, Pennsylvania School District (Floaters --
Series 496) VRDN 3.03% due 04/01/2027 (a)(b) ...... 9,364,500
71,500,000 Philadelphia, Pennsylvania School District TRAN
3.00% due 06/30/2005 .............................. 71,660,753
- ------------------------------------------------------------------------------------------------------
Puerto Rico -- 30,211,000 Government Development Bank, Puerto Rico CP
0.8% 2.25% due 05/02/2005 .............................. 30,211,000
66,000,000 Puerto Rico, Commonwealth TRAN 3.00%
due 07/29/2005 .................................... 66,215,115
- ------------------------------------------------------------------------------------------------------
Rhode Island -- 7,500,000 Lincoln, Rhode Island BAN 3.00% due 10/12/2005 ...... 7,538,353
0.3% 3,400,000 Rhode Island State EDR (Immunex Rhode Island
Corp. Sewer Project) VRDN 3.07%
due 12/01/2023 (a) ................................ 3,400,000
5,600,000 Rhode Island State Health & Educational Building
Corp. Revenue (La Salle Academy) VRDN 3.00%
due 07/01/2033 (a) ................................ 5,600,000
5,000,000 Rhode Island State Health & Educational Building
Corp. Revenue (Jewish Services Agency) VRDN
3.00% due 12/01/2032 (a) .......................... 5,000,000
5,000,000 Rhode Island State Health & Educational Building
Corp. Revenue (Pennfield School) VRDN 3.00%
due 09/01/2034 (a) ................................ 5,000,000
3,150,000 Rhode Island State Health & Educational Building
Corp. Revenue (Thundermist) VRDN 3.00%
due 02/01/2034 (a) ................................ 3,150,000
2,415,000 Rhode Island State Housing & Mortgage Finance M/F
Corp. (Smith Building Development Corp.) VRDN
3.05% due 12/01/2028 (a) .......................... 2,415,000
See Notes to Financial Statements.
91
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Rhode Island $ 2,300,000 Rhode Island State Industrial Facilities Corporation
(continued) IDR (Capital Development Corp. Project) VRDN
2.50% due 11/01/2005 (a) .......................... $ 2,300,000
4,270,000 Rhode Island State Industrial Facilities Corporation
IDR (Hall Real Estate LLC Project) VRDN 3.07%
due 02/01/2021 (a) ................................ 4,270,000
1,050,000 Rhode Island State Industrial Facilities Corporation
IDR (Gardener Specialty -- Series A) VRDN 3.09%
due 05/01/2021 (a) ................................ 1,050,000
- ------------------------------------------------------------------------------------------------------
South 8,300,000 Berkeley County, South Carolina IDR (Nucor Corp.
Carolina -- Project) VRDN 3.07% due 04/01/2030 (a) ............ 8,300,000
1.2% 5,630,000 Columbia, South Carolina Certificate Partnership
(Putters -- Series 574) VRDN 3.03%
due 02/01/2012 (a)(b) ............................. 5,630,000
4,100,000 Darlington County, South Carolina IDR (Nucor
Corp. Project -- Series A) VRDN 3.07%
due 08/01/2029 (a) ................................ 4,100,000
Florence County, South Carolina Solid Waste Disposal
& Wastewater Treatment Facilities Revenue
(Roche Carolina Inc. Project) DDN:
20,850,000 3.09% due 04/01/2026 (a) .......................... 20,850,000
11,700,000 3.09% due 04/01/2028 (a) .......................... 11,700,000
5,255,000 Greenville Hospital System, South Carolina Hospital
Facilities Revenue (ROCS RR II R 2025) VRDN
3.03% due 05/01/2019 (a)(b) ....................... 5,255,000
10,200,000 Medical University, South Carolina Hospital
Facilities Revenue (Series A-5) VRDN 3.04%
due 08/15/2027 (a) ................................ 10,200,000
5,000,000 Rock Hill, South Carolina Utilities System Revenue
(Series B) VRDN 2.95% due 01/01/2033 (a) .......... 5,000,000
20,340,000 South Carolina EDA Health Facilities Revenue
(Episcopal Church Home) VRDN 3.09%
due 04/01/2027 (a) ................................ 20,340,000
6,250,000 South Carolina EDA EDR (Holcim US Inc. Project)
VRDN 3.15% due 12/01/2033 (a) ..................... 6,250,000
See Notes to Financial Statements.
92
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
South Carolina $ 22,500,000 South Carolina EDA EDR (Giant Cement Holding
(continued) Inc.) VRDN 3.02% due 12/01/2022 (a) ............... $ 22,500,000
1,045,000 South Carolina EDA EDR (Parkway Products Inc.
Project) VRDN 3.09% due 11/01/2007 (a) ............ 1,045,000
3,970,000 South Carolina EDA EDR (Performance Friction
Corp. Project) VRDN 3.05% due 06/01/2012 (a) ...... 3,970,000
5,065,000 South Carolina EDA IDR (Core Materials Corp.
Project) VRDN 3.14% due 04/01/2013 (a) ............ 5,065,000
3,100,000 South Carolina EDA IDR (Electric City Printing Co.
Project) VRDN 3.15% due 07/01/2012 (a) ............ 3,100,000
2,960,000 South Carolina Jobs EDA Authority Student Housing
Revenue (Putters -- Series 650) VRDN 3.03%
due 08/01/2012 (a) ................................ 2,960,000
4,565,000 South Carolina State Public Service Authority Revenue
(ROCS RR II R 6007) VRDN 3.03%
due 01/01/2022 (a)(b) ............................. 4,565,000
11,100,000 South Carolina Transportation Infrastructure Bank
Revenue Municipal Securities Trust (SGA 116)
DDN 3.05% due 10/01/2027 (a)(b) ................... 11,100,000
5,245,000 South Carolina Transportation Infrastructure Bank
Revenue (Putters -- Series 316) VRDN 3.02%
due 10/01/2021 (a)(b) ............................. 5,245,000
- ------------------------------------------------------------------------------------------------------
South Dakota -- 6,000,000 South Dakota State Health & Educational Facilities
0.1% Authority Revenue University (Sioux Falls) DDN
3.10% due 10/01/2034 (a) .......................... 6,000,000
11,000,000 South Dakota State Health & Educational Facilities
Authority Revenue (Rapid City Regional Hospital
MBIA) DDN 3.05% due 09/01/2027 (a) ................ 11,000,000
- ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
93
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Tennessee -- Blount County, Tennessee Public Building Authority
7.0% (Local Government Public Improvement) DDN:
$ 20,000,000 (Series A-1-A) 3.06% due 06/01/2031 (a) ........... $ 20,000,000
16,070,000 (Series A-1-B) 3.06% due 06/01/2022 (a) ........... 16,070,000
11,500,000 (Series A-1-C) 3.06% due 06/01/2017 (a) ........... 11,500,000
3,165,000 (Series A-1-D) 3.06% due 06/01/2025 (a) ........... 3,165,000
11,175,000 (Series A-2-A) 3.06% due 06/01/2030 (a) ........... 11,175,000
10,000,000 (Series A-2-B) 3.06% due 06/01/2025 (a) ........... 10,000,000
5,000,000 (Series A-2-C) 3.06% due 06/01/2021 (a) ........... 5,000,000
10,000,000 (Series A-2-D) 3.06% due 06/01/2026 (a) ........... 10,000,000
33,100,000 (Series A-3-A) 3.06% due 06/01/2026 (a) ........... 33,100,000
10,000,000 (Series A-5-A) 3.06% due 06/01/2030 (a) ........... 10,000,000
5,700,000 (Series A-5-B) 3.06% due 06/01/2028 (a) ........... 5,700,000
14,000,000 (Series D-1-B) 3.06% due 06/01/2027 (a) ........... 14,000,000
53,000,000 Clarksville, Tennessee Public Building Authority
Revenue DDN 3.05% due 07/01/2034 (a) .............. 53,000,000
4,310,000 Greeneville, Tennessee Health & Educational
Facilities Board Hospital Revenue (Floating Rate
Certificates -- Series 172) VRDN 3.09%
due 11/15/2008 (a)(b) ............................. 4,310,000
5,855,000 Jackson, Tennessee Energy Authority Gas System
Revenue VRDN 2.99% due 04/01/2027 (a) ............. 5,855,000
4,845,000 Jackson, Tennessee Energy Authority Water System
Revenue VRDN 2.99% due 12/01/2023 (a) ............. 4,845,000
2,000,000 Jackson, Tennessee Health, Educational & Housing
Facilities Board M/F Revenue (Villages Old Hickory
Project) FXRDN 2.69% due 12/01/2006 ............... 2,000,000
19,775,000 Johnson County, Tennessee Municipal Securities Trust
(SGA 45) VRDN 3.05% due 05/01/2021 (a)(b) ......... 19,775,000
3,000,000 Knox County, Tennessee Health, Educational &
Housing Facilities Board Revenue (Holston
Long Term Care Project) VRDN 3.19%
due 08/01/2015 (a) ................................ 3,000,000
See Notes to Financial Statements.
94
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Tennessee $ 7,080,000 Knox County, Tennessee Health, Educational &
(continued) Housing Facilities Board Revenue (Cookeville
Regional Project -- Series A-2) VRDN 3.17%
due 10/01/2026 (a) ................................ $ 7,080,000
7,640,000 Knox County, Tennessee Health, Educational &
Housing Facilities Board Revenue (Baptist Hospital
System Project) VRDN 3.17% due 04/01/2027 (a) ..... 7,640,000
8,000,000 Lewisburg, Tennessee Industrial Development
Board (Solid Waste Disposal Revenue Waste
Management Incorporated Project) VRDN 3.08%
due 07/01/2033 (a) ................................ 8,000,000
5,638,500 Memphis, Tennessee (Floaters -- Series 1018) VRDN
3.03% due 10/01/2019 (a)(b) ....................... 5,638,500
14,000,000 Memphis, Tennessee Electric System Revenue
(Putters -- Series 377) VRDN 3.03%
due 12/01/2011 (a)(b) ............................. 14,000,000
12,040,000 Memphis, Tennessee Health, Educational & Housing
Facilities Board Revenue (Not-For-Profit M/F
Project) VRDN 3.15% due 08/01/2032 (a) ............ 12,040,000
9,185,000 Montgomery County, Tennessee Public Building
Authority Revenue (Tennessee County Loan Pool)
VRDN 3.00% due 09/01/2029 (a) ..................... 9,185,000
Montgomery County, Tennessee Public Building
Authority Revenue (Tennessee County Loan
Pool) DDN:
46,935,000 3.05% due 04/01/2032 (a) .......................... 46,935,000
102,500,000 3.05% due 07/01/2034 (a) .......................... 102,500,000
4,500,000 Nashville & Davidson County, Tennessee Airport
Authority Revenue (Embraer Aircraft Service
Project) VRDN 3.12% due 05/01/2030 (a) ............ 4,500,000
235,000 Nashville & Davidson County, Tennessee IDB
Revenue (Gibson Guitar Project) VRDN 3.00%
due 03/01/2011 (a) ................................ 235,000
See Notes to Financial Statements.
95
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Tennessee $ 9,310,000 Metropolitan Government Nashville & Davidson
(continued) County, Tennessee IDB Educational Facilities
Revenue (David Lipscomb University Project)
VRDN 3.00% due 02/01/2023 (a) ..................... $ 9,310,000
1,990,000 Metropolitan Government Nashville & Davidson
County, Tennessee District Energy System Revenue
(ROCS RR II R 2072) VRDN 3.03%
due 10/01/2022 (a)(b) ............................. 1,990,000
3,985,000 Metropolitan Government Nashville & Davidson
County, Tennessee H & E Facilities Board Revenue
(Floaters Certificates -- Series 533) VRDN 3.04%
due 11/15/2016 (a)(b) ............................. 3,985,000
4,095,000 Metropolitan Government Nashville & Davidson
County, Tennessee Sports Authority Revenue
(Putters -- Series 543) VRDN 3.03%
due 07/01/2012 (a)(b) ............................. 4,095,000
Sevier County, Tennessee Public Building Authority
(Local Government Public Improvement) DDN:
36,200,000 (Series IV-1) 3.06% due 06/01/2023 (a) ............ 36,200,000
6,000,000 (Series IV-2) 3.06% due 06/01/2020 (a) ............ 6,000,000
8,000,000 (Series IV-3) 3.06% due 06/01/2025 (a) ............ 8,000,000
8,365,000 (Series IV-A-2) 3.06% due 06/01/2025 (a) .......... 8,365,000
9,000,000 (Series IV-A-3) 3.06% due 06/01/2020 (a) .......... 9,000,000
20,840,000 (Series IV-B-1) 3.06% due 06/01/2020 (a) .......... 20,840,000
10,000,000 (Series IV-B-2) 3.06% due 06/01/2019 (a) .......... 10,000,000
7,000,000 (Series IV-B-3) 3.06% due 06/01/2025 (a) .......... 7,000,000
7,000,000 (Series IV-B-4) 3.06% due 06/01/2013 (a) .......... 7,000,000
10,000,000 (Series IV-B-5) 3.06% due 06/01/2022 (a) .......... 10,000,000
5,910,000 (Series IV-B-6) 3.06% due 06/01/2020 (a) .......... 5,910,000
5,000,000 (Series IV-B-10) 3.06% due 06/01/2023 (a) ......... 5,000,000
11,800,000 (Series IV-D-2) 3.06% due 06/01/2025 (a) .......... 11,800,000
5,765,000 (Series IV-E-2) 3.06% due 06/01/2021 (a) .......... 5,765,000
5,000,000 (Series IV-F-3) 3.06% due 06/01/2021 (a) .......... 5,000,000
10,000,000 (Series IV-G-1) 3.06% due 06/01/2026 (a) .......... 10,000,000
9,100,000 (Series IV-G-2) 3.06% due 06/01/2022 (a) .......... 9,100,000
7,500,000 (Series IV-G-3) 3.06% due 06/01/2022 (a) .......... 7,500,000
See Notes to Financial Statements.
96
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
=======================================================================================================
Value
Face Amount Issue (Note 1a)
=======================================================================================================
Tennessee $ 9,200,000 (Series IV-H-1) 3.06% due 06/01/2025 (a) .......... $ 9,200,000
(continued) 5,050,000 (Series IV-H-2) 3.06% due 06/01/2027 (a) .......... 5,050,000
10,000,000 (Series IV-I-1) 3.06% due 06/01/2032 (a) .......... 10,000,000
5,280,000 (Series IV-I-3) 3.06% due 06/01/2015 (a) .......... 5,280,000
18,000,000 (Series IV-J-1) 3.06% due 06/01/2028 (a) .......... 18,000,000
Shelby County, Tennessee CP:
8,000,000 2.02% due 05/04/2005 .............................. 8,000,000
19,500,000 2.09% due 05/04/2005 .............................. 19,500,000
6,500,000 2.04% due 05/06/2005 .............................. 6,500,000
12,000,000 2.20% due 05/06/2005 .............................. 12,000,000
18,000,000 2.43% due 06/10/2005 .............................. 18,000,000
4,660,000 Shelby County, Tennessee (ROCS RR II R 3023)
VRDN 3.03% due 04/01/2020 (a)(b) .................. 4,660,000
21,800,000 Shelby County, Tennessee Health, Educational &
Housing Facilities Board Revenue M/F Housing
VRDN 3.05% due 07/01/2024 (a) ..................... 21,800,000
23,200,000 Tennessee Housing & Development Agency S/F
Mortgage Revenue (Series CN -1) FXRDN 2.70%
due 08/11/2005 .................................... 23,200,000
39,185,000 Tennessee Housing & Development Agency S/F
Mortgage Revenue (Series R-9) FXRDN 2.57%
due 12/08/2005 .................................... 39,185,000
18,845,000 Tennessee Housing & Development Agency S/F
Mortgage Revenue (Series 2004) FXRDN 2.70%
due 08/11/2005 .................................... 18,845,000
- -------------------------------------------------------------------------------------------------------
Texas -- 24,884,000 ABN-AMRO Muni Tops -- Texas A&M University
14.1% Revenue (Series 1999-5) VRDN 3.04%
due 12/06/2006 (a)(b) ............................. 24,884,000
15,750,000 ABN-AMRO Muni Tops -- Houston, Texas Airport
System (Series 1998-15) VRDN 3.10%
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
3.04% due 07/04/2007 (a)(b) ....................... 20,000,000
See Notes to Financial Statements.
97
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Texas $ 9,000,000 ABN-AMRO Muni Tops -- San Antonio, Texas
(continued) Electric & Gas Revenue (Series 1998-22) VRDN
3.04% 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 3.04%
due 07/01/2009 (a)(b) ............................. 9,510,000
8,730,000 Austin, Texas (Putters -- Series 720) VRDN 3.03%
due 03/01/2013 (a)(b) ............................. 8,730,000
35,198,000 Austin, Texas Utility System Revenue (Travis &
Williamson Co.) CP 2.50% due 05/24/2005 ........... 35,198,000
22,350,000 Austin, Texas Water & Water System Revenue VRDN
3.00% due 05/15/2024 (a) .......................... 22,350,000
45,000,000 Bell County, Texas Health Facilities Development
Corp. Revenue (Scott & White Member Hospital --
Series 2001-2) DDN 3.05% due 08/15/2031 (a) ....... 45,000,000
4,865,000 Bexar County, Texas (Putters -- Series 537) VRDN
3.03% due 06/15/2011 (a)(b) ....................... 4,865,000
Brazos River Authority Texas PCR VRDN:
17,000,000 (Series A) 3.05% due 10/01/2030 (a) ............... 17,000,000
34,600,000 (Series D-1) 3.04% due 05/01/2033 (a) ............. 34,600,000
19,770,000 (Series D-2) 3.04% due 05/01/2033 (a) ............. 19,770,000
20,000,000 Brazos River, Texas Harbor Navigator District (BASF
Corp. Project) VRDN 3.05% due 04/01/2037 (a) ...... 20,000,000
15,100,000 Brownsville, Texas Utility System (Series A) CP 2.40%
due 05/25/2005 .................................... 15,100,000
4,990,000 Cameron County, Texas Housing Finance Corp.
FXRDN 2.90% due 09/01/2005 ........................ 4,990,000
16,302,917 Cameron County, Texas Housing Finance Corp. S/F
Mortgage Revenue (Series A) FXRDN 2.82%
due 06/01/2005 .................................... 16,302,917
34,800,000 Capital Area Cultural Educational Facilities Revenue
VRDN 3.00% due 04/01/2025 (a) ..................... 34,800,000
19,302,556 Central Texas Housing Finance Corp. S/F Mortgage
Revenue (Series A) FXRDN 2.91% due 07/01/2005...... 19,302,556
2,585,000 Comal, Texas School District (Putters -- Series 756)
VRDN 3.03% due 02/01/2011 (a)(b) .................. 2,585,000
See Notes to Financial Statements.
98
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Texas $ 2,280,000 Corpus Christi, Texas IDC EDR (Air Invention Co.
(continued) Project) FXRDN 2.40% due 08/01/2005 ............... $ 2,280,000
3,795,000 Corpus Christi, Texas Utilities System Revenue
(ROCS RR II R 2149) VRDN 3.03%
due 07/15/2024 (a)(b) ............................ 3,795,000
8,400,000 Dallas Fort Worth, Texas International Airport
Revenue VRDN 3.07% due 11/01/2032 (a) ............. 8,400,000
2,745,000 Dallas Fort Worth, Texas International Airport
Revenue (Floaters -- Series 824) VRDN 3.09%
due 11/01/2015 (a)(b) ............................. 2,745,000
4,790,000 Dallas Fort Worth, Texas International Airport
Revenue (Merlots -- Series A-13) VRDN 3.13%
due 11/01/2011 (a)(b) ............................. 4,790,000
4,495,000 Dallas, Texas School District (ROCS RR II R 6038)
VRDN 3.03% due 08/15/2024 (a)(b) .................. 4,495,000
3,245,000 Dallas, Texas School District (Floaters --
Series 1073) VRDN 3.03% due 02/15/2021 (a)(b) ..... 3,245,000
25,000,000 Dallas, Texas Area Rapid Transit Authority CP 2.15%
due 05/02/2005 .................................... 25,000,000
5,130,000 Denton County, Texas (Putters -- Series 675) VRDN
3.03% due 07/15/2010 (a)(b) ....................... 5,130,000
2,552,500 Denton, Texas School District (Floaters --
Series 951) VRDN 3.03% due 08/15/2033 (a)(b) ...... 2,552,500
3,000,000 Denton, Texas School District (Series 2005-A) VRDN
3.07% due 08/01/2035 (a)(b) ....................... 3,000,000
13,350,000 Dickinson, Texas Independent School District
Municipal Securities Trust Receipts (SGA 94) DDN
3.05% due 02/15/2028 (a)(b) ....................... 13,350,000
6,000,000 Eagle Mountain & Saginaw, Texas School District
VRDN 3.03% due 08/01/2030 (a) ..................... 6,000,000
12,000,000 Eagle Tax-Exempt Trust -- Texas State Turnpike
Authority (Series 02-6004) VRDN 3.03%
due 08/15/2042 (a)(b) ............................. 12,000,000
5,490,079 El Paso County, Texas Housing Finance Corp. S/F
Mortgage Revenue (Series A) FXRDN 2.60%
due 06/09/2005 .................................... 5,490,079
See Notes to Financial Statements.
99
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Texas $ 1,765,000 Gulf Coast Waste Disposal Authority Texas
(continued) Environment Facilities Revenue (Waste Corp Texas
Project) VRDN 3.05% due 09/01/2022 (a) ............ $ 1,765,000
2,800,000 Gulf Coast Waste Disposal Authority Texas
Environment Facilities Revenue (Air Products
Project) VRDN 3.08% due 12/01/2039 (a) ............ 2,800,000
12,500,000 Gulf Coast Waste Disposal Authority Texas Solid
Waste Disposal Revenue (Air Products Project)
VRDN 3.08% due 03/01/2035 (a) ..................... 12,500,000
9,400,000 Gulf Coast Waste Disposal Authority Texas Solid
Waste Disposal Revenue (Waste Management --
Series A) VRDN 3.05% due 04/01/2019 (a) ........... 9,400,000
13,325,000 Harris County, Houston Texas (Sports Authority
Revenue -- Series Z-3) VRDN 3.11%
due 11/15/2025 (a) ................................ 13,325,000
4,000,000 Harris County, Texas (Eagle -- Series 2002-6012) GO
VRDN 3.03% due 08/15/2030 (a)(b) .................. 4,000,000
80,000,000 Harris County, Texas Health Facilities Development
Corp. Hospital Revenue (The Methodist System --
Series B) DDN 2.07% due 05/09/2005 (a) ............ 80,000,000
3,900,000 Harris County, Texas IDC Solid Waste Disposal
Revenue (Deer Park Limited Partnership -- Series
A) DDN 3.09% due 02/01/2023 (a) ................... 3,900,000
13,460,000 Houston, Texas (Floaters Trust -- Series L-41) VRDN
3.08% due 06/30/2005 (a)(b) ....................... 13,460,000
4,995,000 Houston, Texas (Putters -- Series 663) VRDN 3.03%
due 03/01/2012 (a)(b) ............................. 4,995,000
10,000,000 Houston, Texas (Series D) GO CP 2.00%
due 05/09/2005 .................................... 10,000,000
5,500,000 Houston, Texas Housing Finance Corp. S/F Mortgage
Revenue FXRDN 3.15% due 10/03/2005 ................ 5,500,000
6,590,000 Houston, Texas Utilities System Revenue (Series A)
VRDN 3.04% due 05/25/2012 (a) ..................... 6,590,000
6,510,000 Houston, Texas Utilities System Revenue (Putters --
Series 669) VRDN 3.03% due 05/15/2012 (a)(b) ...... 6,510,000
See Notes to Financial Statements.
100
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Texas $ 9,995,000 Houston, Texas Water & Sewer System Revenue
(continued) (Merlots -- Series C-20) VRDN 3.08%
due 12/01/2032 (a)(b) ............................. $ 9,995,000
18,500,000 Houston, Texas Water & Sewer System Revenue
(Merlots -- Series A -128) VRDN 3.08%
due 12/01/2029 (a)(b) ............................. 18,500,000
10,455,000 Irving, Texas School District (Putters -- Series 782)
VRDN 3.03% due 02/15/2013 (a)(b) .................. 10,455,000
6,200,000 Jewett Economic Development Corp. Texas IDR
(Nucor Corp. Project) VRDN 3.07%
due 08/01/2038 (a) ................................ 6,200,000
28,500,000 Keller, Texas Independent School District Municipal
Securities Trust Receipts (SGA 111) DDN 3.05%
due 08/15/2030 (a)(b) ............................. 28,500,000
7,190,000 Killeen, Texas Waterworks & Sewer Revenue
(Putters -- Series 542) VRDN 3.03%
due 08/15/2011 (a)(b) ............................. 7,190,000
1,300,000 Longview Texas Industrial Corp. Revenue
(Collins Industries Inc. Project) VRDN 3.07%
due 04/01/2009 (a) ................................ 1,300,000
2,000,000 Mansfield, Texas School District (Putters -- Series
704) VRDN 3.03% due 02/15/2013 (a)(b) ............. 2,000,000
12,680,000 Mesquite, Texas School District VRDN 3.00%
due 08/15/2025 (a) ................................ 12,680,000
3,300,000 Mesquite, Texas IDC Revenue (Morrison Products)
VRDN 3.07% due 01/10/2010 (a) ..................... 3,300,000
656,500 Montgomery County, Texas IDC Revenue (Sawyer
Research Products Inc.) VRDN 3.18%
due 02/01/2015 (a) ................................ 656,500
13,460,000 Municipal Securities Trust Certificates -- Austin,
Texas (Class A -- Series 105) DDN 3.05%
due 06/08/2020 (a)(b) ............................. 13,460,000
Municipal Securities Trust Certificates -- Houston,
Texas Water (Class A -- Series 2001-111) DDN:
12,780,000 3.05% due 05/07/2019 (a)(b) ....................... 12,780,000
6,000,000 3.05% due 05/17/2019 (a)(b) ....................... 6,000,000
See Notes to Financial Statements.
101
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Texas $ 35,735,000 Municipal Securities Trust Certificates -- Houston,
(continued) Texas Water (Class A -- Series 2001-123) DDN
3.05% 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 3.05% 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 3.05%
due 03/08/2017 (a)(b) ............................. 9,725,000
3,335,602 Nortex, Texas Housing Finance Corp. S/F Mortgage
Revenue (Series A) FXRDN 2.38% due 02/01/2006...... 3,335,602
3,900,000 North Center, Texas Health Facilities Development
Corp. Revenue (Methodist Hospital Dallas --
Series B) DDN 3.05% due 10/01/2015 (a) ............ 3,900,000
North East, Texas Independent School District
VRDN:
6,865,000 (Putters -- Series 390) 3.03% due 02/01/2012 (a)(b) 6,865,000
6,150,000 (Putters -- Series 393) 3.03% due 02/01/2012 (a)(b) 6,150,000
2,427,500 North Texas Highway Authority Revenue (Dallas
North Highway Systems Floaters -- Series 1040)
VRDN 3.03% due 01/01/2035 (a)(b) .................. 2,427,500
11,800,000 North Texas Highway Authority Revenue (Dallas
North Highway Systems Eagles -- 72005-00025
CL A) VRDN 3.03% due 01/01/2035 (a)(b) ............ 11,800,000
42,100,000 Nueces River, Texas IDA PCR (San Miguel Electric
Co-op) CP 2.85% due 06/06/2005 .................... 42,100,000
3,000,000 Pflugerville, Texas (Putters -- Series 594) VRDN
3.03% due 08/01/2023 (a) .......................... 3,000,000
6,955,000 Plano, Texas Independent School District (ROCS RR
II R 2106) VRDN 3.03% due 02/15/2018 (a)(b) ....... 6,955,000
15,000,000 Port Arthur, Texas Naval District Revenue (Series B)
VRDN 3.05% due 05/01/2038 (a) ..................... 15,000,000
10,000,000 Port Arthur, Texas Naval District Revenue
(Atofina Project -- Series B) VRDN 3.05%
due 05/01/2038 (a) ................................ 10,000,000
See Notes to Financial Statements.
102
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Texas $ 10,000,000 Port Arthur, Texas Naval District IDC (Air Products
(continued) & Chemicals Project) VRDN 3.08%
due 04/01/2035 (a) ................................ $ 10,000,000
22,035,000 Port Arthur, Texas Naval District Environmental
Facilities Revenue (Motiva Enterprises Project)
VRDN 3.05% due 12/01/2027 (a) ..................... 22,035,000
25,000,000 Port Corpus Christi, Texas Solid Waste Disposal
Revenue (Flint Hills -- Series A) VRDN 3.35%
due 07/01/2029 (a) ................................ 25,000,000
35,000,000 Red River, Texas Educational Finance Corp.
(Texas Christian University Project) VRDN 3.04%
due 03/01/2030 (a) ................................ 35,000,000
20,000,000 San Antonio, Texas Electric & Gas Revenue System
VRDN 2.20% due 12/01/2027 (a) ..................... 20,000,000
24,200,000 San Antonio, Texas Electric & Gas CP 2.00%
due 05/10/2005 .................................... 24,200,000
San Antonio, Texas Water Revenue CP:
10,000,000 1.98% due 05/04/2005 .............................. 10,000,000
33,500,000 2.22% due 05/05/2005 .............................. 33,500,000
4,995,000 San Marcos, Texas School District (Merlots -- Series
C-23) VRDN 1.70% due 08/01/2029 (a)(b) ............ 4,995,000
7,801,510 Southeast, Texas Housing Finance Corp. S/F Mortgage
Revenue FXRDN 2.86% due 04/03/2006 ................ 7,801,510
7,000,000 Spring, Texas School District (Putters -- Series 695)
VRDN 3.03% due 08/15/2012 (a)(b) .................. 7,000,000
16,155,000 Tarrant County, Texas Health Facilities Development
Corp. Revenue (Cumberland Rest Project) DDN
3.06% due 08/15/2032 (a) .......................... 16,155,000
22,000,000 Texas State College Student Loan FXRDN 1.80%
due 07/01/2005 .................................... 22,000,000
9,520,000 Texas State College Student Loan Program VRDN
2.90% due 02/01/2011 (a) .......................... 9,520,000
15,000,000 Texas State Department Housing & Community
Affairs M/F Revenue (Arlington Villas -- Series A)
VRDN 3.08% due 12/01/2036 (a) ..................... 15,000,000
See Notes to Financial Statements.
103
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Texas $ 3,105,000 Texas State Department Housing & Community
(continued) Affairs S/F VRDN 3.13% due 09/01/2028 (a) ......... $ 3,105,000
11,435,000 Texas State Municipal Securities Trust Receipts (SGA
92) DDN 3.05% due 08/01/2029 (a)(b) ............... 11,435,000
Texas State Municipal Power Agency CP:
30,000,000 2.30% due 05/16/2005 .............................. 30,000,000
30,000,000 2.35% due 06/07/2005 .............................. 30,000,000
45,750,000 2.39% due 06/09/2005 .............................. 45,750,000
14,000,000 Texas State (Floating Rate Trust Regional --
Series D) VRDN 2.90% due 08/31/2005 (a) ........... 14,000,000
3,575,000 Texas State (ROCS RR II R 4020) VRDN 3.03%
due 10/01/2022 (a)(b) ............................. 3,575,000
325,000,000 Texas State TRAN 3.00% due 08/31/2005 ............... 326,502,705
2,295,000 Texas State Turnpike Authority Revenue (ROCS RR II
R 284) VRDN 3.03% due 08/15/2039 (a) .............. 2,295,000
6,000,000 Texas State Veterans Housing (Fund II -- Series A-2)
VRDN 3.02% due 06/01/2033 (a) ..................... 6,000,000
Travis County, Texas Housing Finance Corp. S/F
Mortgage Revenue (Series 2001-1-I-1) FXRDN:
18,783,231 3.21% due 05/02/2005 .............................. 18,783,231
18,783,231 3.25% due 05/01/2006 .............................. 18,783,231
6,830,000 Trinity River Authority Texas Solid Waste Disposal
Revenue (Community Waste Disposal Project)
VRDN 3.05% due 05/01/2021 (a) ..................... 6,830,000
4,000,000 University of North Texas, University Revenue VRDN
3.03% due 04/15/2034 (a) .......................... 4,000,000
6,690,000 University of Texas, University Revenue VRDN
3.03% due 07/01/2033 (a) .......................... 6,690,000
21,995,000 University of Texas, University Revenue (Series 97)
VRDN 3.03% due 08/15/2019 (a) ..................... 21,995,000
2,900,000 Upper Trinity Regional Water District Texas Water
Revenue (Putters -- Series 579) VRDN 3.03%
due 08/01/2012 (a)(b) ............................. 2,900,000
5,645,000 Victoria County, Texas Hospital Revenue (Floaters --
Series 959) VRDN 3.03% due 01/01/2016 (a)(b) ...... 5,645,000
See Notes to Financial Statements.
104
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Texas $ 4,860,000 Williamson County, Texas (Putters -- Series 410)
(continued) VRDN 3.03% due 02/15/2012 (a)(b) .................. $ 4,860,000
- ------------------------------------------------------------------------------------------------------
Utah -- 88,000,000 Emery County, Utah PCR (Pacificorp Projects) DDN
1.8% 3.05% due 11/01/2024 (a) .......................... 88,000,000
3,085,000 Logan City, Utah Revenue (Integrated System Inc. --
Series A) VRDN 3.15% due 06/01/2014 (a) ........... 3,085,000
54,900,000 Murray City, Utah Hospital Revenue (Health Services
Inc. -- Series C) DDN 3.05% due 05/15/2036 (a) .... 54,900,000
14,790,000 Utah Housing Corp. S/F Mortgage Revenue VRDN
(Series F-1) 3.09% due 01/01/2034 (a) ............. 14,790,000
Utah Water Finance Agency Revenue VRDN:
12,100,000 (Series A-4) 3.07% due 07/01/2029 (a) ............. 12,100,000
7,450,000 (Series A-5) 3.10% due 10/01/2027 (a) ............. 7,450,000
13,150,000 (Series A-6) 3.10% due 10/01/2030 (a) ............. 13,150,000
12,000,000 (Series A-8) 3.07% due 07/01/2032 (a) ............. 12,000,000
9,000,000 (Series A-9) 3.07% due 07/01/2034 (a) ............. 9,000,000
12,400,000 (Series A-11) 3.07% due 07/01/2031 (a) ............ 12,400,000
- ------------------------------------------------------------------------------------------------------
Vermont -- 1,445,000 Vermont EDA IDR (Huber & Suhner -- Series A)
0.0% VRDN 3.09% due 10/01/2016 (a) ..................... 1,445,000
- ------------------------------------------------------------------------------------------------------
Virginia -- 7,000,000 Charles City County, Virginia EDA Solid Waste
1.0% Disposal Revenue (Waste Management Inc.
Project -- Series A) VRDN 3.05%
due 02/01/2029 (a) ................................ 7,000,000
10,610,000 Fairfax County, Virginia EDA Student Housing
Revenue (George Mason Unified Foundation
Incorporated Project) VRDN 3.00%
due 02/01/2029 (a) ................................ 10,610,000
3,395,000 Hampton, Virginia IDA Exempt Facilities Revenue
(USA Waste of Virginia Landfills) VRDN 3.05%
due 04/01/2013 (a) ................................ 3,395,000
2,270,000 Loudoun County, Virginia Water Sewer Revenue
(ROCS RR II R 6511) VRDN 3.03%
due 01/01/2024 (a)(b) ............................. 2,270,000
See Notes to Financial Statements.
105
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Virginia $ 10,000,000 Municipal Securities Trust Certificates
(continued) (Upper Occoquan Sewer Authority Virginia --
Class A -- Series 2001-159) DDN 3.05%
due 03/19/2015 (a)(b) ............................. $ 10,000,000
Norfolk, Virginia IDA Pool Finance (Sentara Health
System Group) CP:
38,000,000 2.03% due 05/06/2005 .............................. 38,000,000
36,300,000 2.40% due 06/07/2005 .............................. 36,300,000
6,000,000 Norfolk, Virginia Redevelopment & Housing
Authority Revenue (Old Dominion University
Project -- Series B) VRDN 3.00%
due 08/01/2033 (a) ................................ 6,000,000
11,385,000 Suffolk, Virginia IDA Residential Care Facilities
Revenue (Lake Prince Center Project) VRDN 3.15%
due 10/01/2031 (a) ................................ 11,385,000
- ------------------------------------------------------------------------------------------------------
Washington -- 5,000,000 ABN-AMRO Muni Tops 2001-01 -- King County,
1.9% Washington VRDN 3.04% due 07/01/2006 (a)(b) ....... 5,000,000
3,050,000 Bellevue, Washington (Eagle 2004-1011 -- Series A)
VRDN 3.03% due 12/01/2043 (a)(b) .................. 3,050,000
4,500,000 Central Puget Sound Washington Regional Authority
Sales & Use Tax Revenue (Putters -- Series 755)
VRDN 3.03% due 11/01/2012 (a)(b) .................. 4,500,000
5,580,000 Clark County, Washington (Putters -- Series 540)
VRDN 3.03% due 06/01/2012 (a)(b) .................. 5,580,000
6,550,000 Clark County, Washington Public Utilities District
(Merlots -- Series A-03) VRDN 3.08%
due 01/01/2010 (a) ................................ 6,550,000
26,745,000 Eagle Tax-Exempt Trust -- Port of Seattle,
Washington Passenger Facility Charge (Series
984705) VRDN 3.03% 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 3.03%
due 07/01/2011 (a)(b) ............................. 14,680,000
See Notes to Financial Statements.
106
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Washington $ 1,340,000 Goat Hill, Washington Lease Revenue (ROCS RR II R
(continued) 2173) VRDN 3.03% due 12/01/2023 (a)(b) ............ $ 1,340,000
4,800,000 Goat Hill, Washington Lease Revenue (Putters --
Series 705) VRDN 3.03% due 12/01/2012 (a)(b) ...... 4,800,000
3,515,000 Grant County, Washington Public Utilities District
No. 002 (Electric Revenue ROCS RR II R 2039) VRDN
3.03% due 01/01/2019 (a)(b) ....................... 3,515,000
6,250,000 King City, Washington (ROCS RR II R 2119) VRDN
1.70% due 06/01/2021 (a)(b) ....................... 6,250,000
23,600,000 Municipal Securities Trust Certificate (Washington
State Motor Vehicle fuel -- Class A -- Series
2001-112) DDN 3.05% due 01/07/2021 (a)(b) ......... 23,600,000
1,000,000 Port Seattle, Washington Revenue (ROCS RR II R
329) VRDN 3.07% due 04/01/2016 (a)(b) ............. 1,000,000
5,695,000 Port Tacoma, Washington Revenue (Merlots -- Series
A-123) VRDN 3.13% due 12/01/2008 (a)(b) ........... 5,695,000
3,355,000 Seattle, Washington Housing Authority Revenue
(Wedgewood Estates Project) VRDN 3.07%
due 09/01/2036 (a) ................................ 3,355,000
2,420,000 Seattle, Washington Housing Authority Revenue
(Newholly Project -- Phase III) VRDN 3.07%
due 12/01/2034 (a) ................................ 2,420,000
9,680,000 Seattle, Washington Municipal Light & Power
Revenue (Municipal Securities Trust -- SGA 85)
DDN 3.05% due 10/01/2023 (a)(b) ................... 9,680,000
6,800,000 Seattle, Washington Municipal Light & Power
Revenue (Putters -- Series 668) VRDN 3.03%
due 08/01/2012 (a)(b) ............................. 6,800,000
10,000,000 Snohomish County, Washington Public Utility District
(#001 Electric Revenue Municipal Securities Trust
Receipts -- SGA -- 124) DDN 3.05%
due 12/01/2024 (a)(b) ............................. 10,000,000
5,230,000 Snohomish County, Transit Infrastructure Bank
Revenue (Putters -- Series 316) VRDN 3.03%
due 12/01/2023 (a)(b) ............................. 5,230,000
See Notes to Financial Statements.
107
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Washington $ 8,750,000 Washington State Economic Development Finance
(continued) Authority EDR (Mount Ainstar Resort -- Series C)
DDN 3.15% 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
3.05% due 07/01/2027 (a) .......................... 4,000,000
17,885,000 Washington State Housing Finance Community
Nonprofit Housing Revenue (Kenney Home Project)
VRDN 2.94% due 12/01/2031 (a) ..................... 17,885,000
8,500,000 Washington State Housing Finance Community M/F
Housing Revenue (Country Club Apartments --
Series A) DDN 3.15% due 08/01/2032 (a) ............ 8,500,000
10,395,000 Washington State Housing Finance Community M/F
Revenue (Merrill Gardens Renton -- Series A)
VRDN 3.08% due 12/01/2040 (a) ..................... 10,395,000
5,715,000 Washington State Floating Certificates Trust --
Austin Trust (Series 2002-C) GO VRDN 3.07%
due 07/01/2023 (a)(b) ............................. 5,715,000
6,795,000 Washington State (Putters -- Series 748) VRDN
3.03% due 01/01/2013 (a)(b) ....................... 6,795,000
15,985,000 Washington State (Floaters -- Series 2000-389) GO
VRDN 3.03% due 07/01/2018 (a)(b) .................. 15,985,000
5,235,000 Washington State (Merlots -- Series A-05) GO VRDN
3.08% due 01/01/2013 (a)(b) ....................... 5,235,000
6,315,000 Washington State (Merlots -- Series A-101) GO
VRDN 3.08% due 07/01/2019 (a)(b) .................. 6,315,000
- ------------------------------------------------------------------------------------------------------
West Virginia -- 2,635,000 Cabell County, West Virginia Building Community
0.3% Revenue (Pressley Ridge School Project) VRDN
3.07% due 08/01/2022 (a) .......................... 2,635,000
15,500,000 Putnam County, West Virginia Solid Waste Disposal
Revenue (Toyota Manufacturing Project -- Series A)
VRDN 3.04% due 04/01/2030 (a) ..................... 15,500,000
See Notes to Financial Statements.
108
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
West Virginia $ 11,175,000 West Virginia State Hospital Finance Authority
(continued) Revenue (Pallottine Health -- Series A-1) VRDN
3.03% due 10/01/2033 (a) .......................... $ 11,175,000
3,860,000 West Virginia University Revenue (Merlots -- Series
A-15) VRDN 3.08% due 04/01/2028 (a)(b) ............ 3,860,000
- ------------------------------------------------------------------------------------------------------
Wisconsin -- 18,985,000 ABN-AMRO Muni Tops 2001-32 -- Wisconsin State
5.3% VRDN 3.04% due 05/01/2022 (a)(b) .................. 18,985,000
15,000,000 Appleton, Wisconsin Redevelopment Authority
Revenue (Fox Cities Arts Center -- Series B) VRDN
3.10% due 06/01/2036 (a) .......................... 15,000,000
1,000,000 Janesville, Wisconsin IDR (Lamson & Session Co.
Project) VRDN 3.13% due 09/01/2007 (a) ............ 1,000,000
3,195,000 Manitowoc, Wisconsin Electric Revenue (ROCS RR II
R 2177) VRDN 3.03% due 10/01/2024 (a)(b) .......... 3,195,000
41,000,000 Milwaukee, Wisconsin (Floating Rate Trust -- Series
L-65) VRDN 3.08% due 09/01/2005 (a) ............... 41,000,000
10,000,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (University of Wisconsin -- Kenilworth
Project) VRDN 3.00% due 09/01/2040 (a) ............ 10,000,000
3,850,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (Wisconsin Humane Society Inc. Project)
VRDN 3.15% due 03/01/2019 (a) ..................... 3,850,000
15,425,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (Milwaukee YMCA Project) DDN 3.10%
due 07/01/2034 (a) ................................ 15,425,000
2,690,000 Sturtevant, Wisconsin IDR (Andis Co. Project --
Series A) VRDN 3.11% due 12/01/2016 (a) ........... 2,690,000
6,675,000 Verona, Wisconsin Area School District TRAN 3.00%
due 08/25/2005 .................................... 6,703,253
2,900,000 Waukesha, Wisconsin Housing Authority Revenue
(Hart Park Square Project) VRDN 3.15%
due 03/01/2034 (a) ................................ 2,900,000
12,745,000 West Allis, Wisconsin Revenue State Fair Park
Exposition VRDN 3.07% due 08/01/2028 (a) .......... 12,745,000
See Notes to Financial Statements.
109
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
======================================================================================================
Value
Face Amount Issue (Note 1a)
======================================================================================================
Wisconsin $ 8,000,000 Wisconsin School District (Cash Flow Management
(continued) Program Certificate Partnership -- Series A-1)
TRAN 3.00% due 09/20/2005 ......................... $ 8,040,384
5,000,000 Wisconsin State (Eagle 2004-1009 A) VRDN 3.03%
due 05/01/2008 (a)(b) ............................. 5,000,000
9,000,000 Wisconsin State (Putters -- Series 531) VRDN 3.03%
due 11/01/2012 (a)(b) ............................. 9,000,000
13,000,000 Wisconsin State (Putters -- Series 693) VRDN 3.03%
due 05/01/2012 (a)(b) ............................. 13,000,000
Wisconsin State GO CP:
21,560,000 (Series 2000-B) 2.09% due 05/06/2005 .............. 21,560,000
15,000,000 (Series 2000-C) 2.24% due 05/09/2005 .............. 15,000,000
24,313,000 (Series 2000-C) 2.08% due 05/25/2005 .............. 24,313,000
29,380,000 (Series 2000-C) 2.43% due 06/10/2005 .............. 29,380,000
8,635,000 (Series 2002-A) 2.32% due 05/11/2005 .............. 8,635,000
17,300,000 (Series 2002-A) 2.45% due 06/08/2005 .............. 17,300,000
16,700,000 (Series 2004-A) 2.09% due 05/06/2005 .............. 16,700,000
25,300,000 (Series 2004-A) 2.32% due 05/11/2005 .............. 25,300,000
16,250,000 (Series 2004-A) 2.08% due 05/24/2005 .............. 16,250,000
33,750,000 (Series 2004-A) 2.36% due 06/08/2005 .............. 33,750,000
25,000,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Agnesian Healthcare Project)
DDN 3.10% due 06/01/2033 (a) ...................... 25,000,000
18,170,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Wisconsin Lutheran College
Project) DDN 3.10% due 06/01/2033 (a) ............. 18,170,000
Wisconsin State Health & Educational Facilities
Authority Revenue (Gunersen Lutheran) DDN:
21,800,000 (Series A) 3.05% due 12/01/2015 (a) ............... 21,800,000
30,545,000 (Series B) 3.05% due 12/01/2029 (a) ............... 30,545,000
12,000,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Oakwood Village) VRDN
3.03% due 03/01/2035 (a) .......................... 12,000,000
7,090,000 Wisconsin State Health & Educational Facilities
Authority Revenue (ProHealth Inc. -- Series 01-B)
DDN 3.05% due 08/15/2030 (a) ...................... 7,090,000
See Notes to Financial Statements.
110
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
=======================================================================================================
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 3.10% due 12/01/2032 (a) ................ $ 18,450,000
7,000,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Lutheran College) VRDN
3.10% due 09/01/2031 (a) .......................... 7,000,000
2,000,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Riverview Hospital) DDN
3.10% due 10/01/2030 (a) .......................... 2,000,000
9,485,000 Wisconsin State Housing & EDA (Home Ownership
Revenue -- Series B) VRDN 3.02%
due 09/01/2034 (a) ................................ 9,485,000
Wisconsin State Petroleum Inspection Fee Revenue
Bonds CP:
30,000,000 2.09% due 05/05/2005 .............................. 30,000,000
16,000,000 2.09% due 05/06/2005 .............................. 16,000,000
16,300,000 2.32% due 05/11/2005 .............................. 16,300,000
30,000,000 2.09% due 05/25/2005 .............................. 30,000,000
50,000,000 2.10% due 06/03/2005 .............................. 50,000,000
- -------------------------------------------------------------------------------------------------------
Wyoming -- Laramie County, Wyoming IDR (Cheyenne Light Fuel
0.1% & Power Co.) VRDN:
3,500,000 (Series 97-B) 3.17% due 09/01/2021 (a) ............ 3,500,000
5,000,000 (Series 97-A) 3.17% due 03/01/2027 (a) ............ 5,000,000
- ------------------------------------------------------------------------------------------------------
Total Investments -- 103.8%
(Cost $13,102,033,385) .............................. 13,102,033,385
- -------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets -- (3.8%) ..... (480,369,693)
- -------------------------------------------------------------------------------------------------------
Net Assets .......................................... $12,621,663,692
- -------------------------------------------------------------------------------------------------------
(a) The interest rate is subject to change periodically based on a certain
index. The rates shown are those in effect at April 30, 2005. 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
1933. 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 $2,445,571,500 or 19.4% of net
assets.
Note -- Cost for federal income tax purposes is $13,102,033,385.
See Notes to Financial Statements.
111
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2005
==========================================================================================================
Portfolio Abbreviations for Master Institutional Tax-Exempt Fund
BAN Bond Anticipation Notes GO General Obligation S/F Single Family
CP Commercial Paper IDA Industrial Development PCR Pollution Control Revenue
Authority
DDN Daily Demand Notes IDB Industrial Development Board RAN Revenue Anticipation Notes
EDA Economic Development IDC Industrial Development TAN Tax Anticipation Notes
Authority Corporation
EDR Economic Development IDR Industrial Development Revenue TRAN Tax Revenue Anticipation
Revenue Notes
FXRDN Fixed Rate Demand Notes M/F Multi-Family VRDN Variable Rate Demand Notes
- ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
112
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Statement of Assets and Liabilities
April 30, 2005
=====================================================================================
Assets:
Total investments, at amortized cost and value (Note 1a) ......... $13,102,033,385
Cash ............................................................. 1,016,692
Interest receivable .............................................. 60,776,795
Receivable for investments sold .................................. 35,276,131
---------------
Total assets .................................................. 13,199,103,003
---------------
Liabilities:
Advisory fee payable (Note 2) .................................... 540,667
Payable for investments purchased ................................ 576,842,614
Accrued expenses ................................................. 56,030
---------------
Total liabilities ............................................. 577,439,311
---------------
Net Assets applicable to investors' interests .................... $12,621,663,692
===============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals .......... $12,621,663,692
===============
- --------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Statement of Operations
For the Year Ended April 30, 2005
=====================================================================================
Investment Income:
Interest and discount earned ..................................... $ 205,626,803
---------------
Expenses:
Investment advisory fee (Note 2) ................................. 6,360,998
Accounting and custodian services ................................ 260,938
Dividend and transfer agency fee ................................. 51,379
---------------
Total expense ................................................. 6,673,315
---------------
Net investment income ......................................... 198,953,488
Net realized loss from investment transactions ................ (143,919)
---------------
Net Increase in Net Assets Resulting From Operations ............. $ 198,809,569
===============
See Notes to Financial Statements.
113
- -----------------------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund Year Ended April 30,
Statement of Changes in Net Assets ------------------------------------------
2005 2004
=======================================================================================================================
Increase in Net Assets:
Operations:
Net investment income ................................................... $ 198,953,488 $ 102,547,036
Net realized gain (loss) from investment transactions ................... (143,919) 160,308
------------------ ------------------
Net increase in net assets resulting from operations .................... 198,809,569 102,707,344
Capital Transactions:
Contributions from feeders .............................................. 14,973,896,385 10,929,810,015
Withdrawals from feeders ................................................ (13,576,470,785) (8,194,309,836)
------------------ ------------------
Net increase in net assets from capital transactions .................... 1,397,425,600 2,735,500,179
------------------ ------------------
Net increase in net assets .............................................. 1,596,235,169 2,838,207,523
Net Assets:
Beginning of year ....................................................... 11,025,428,523 8,187,221,000
------------------ ------------------
End of year ............................................................. $ 12,621,663,692 $ 11,025,428,523
================== ==================
- -----------------------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund Year Ended April 30, For the Period
Supplementary Data ------------------------------------------------- January 14, 2002*
2005 2004 2003 to April 30, 2002
===========================================================================================================================
Ratio of expenses to average net assets ......... .05% .05% .05% .05%(1)
Ratio of net investment income to average
net assets ..................................... 1.56% 1.01% 1.36% 1.47%(1)
Net Assets, end of period (000) ................. $ 12,621,664 $ 11,025,429 $ 8,187,221 $ 4,474,011
(1) On an annualized basis.
* Commencement of Operations.
See Notes to Financial Statements.
114
- --------------------------------------------------------------------------------
Master Institutional Money Market Trust
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Master Institutional Money Market Trust (the "Master Trust") is organized as a
business trust under the laws of the State of Delaware and is registered under
the Investment Company Act of 1940 as an open-end management company. The
Declaration of Trust permits the Trustees to issue unlimited beneficial
interests in the Master Trust. Beneficial interests in the Master Trust are
issued solely in private placement transactions to accredited investors. The
Master Trust consists of three series, Master Premier Institutional Fund, Master
Institutional Fund, and Master Institutional Tax-Exempt Fund, (collectively, the
"Master Funds").
The Master Trust's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America, which
may require management to make certain estimates and assumptions at the date of
the financial statements. The following is a summary of significant accounting
policies consistently followed by the Master Trust in conformity with accounting
principles generally accepted in the United States of America.
(a) The value of the Master Premier Institutional and Master Institutional
Funds' portfolio securities is determined on the basis of fair value as
determined in good faith by the Board of Trustees (the "Trustees") of the Master
Trust. In determining fair value, securities for which market quotations are
readily available are valued at market value. Other securities, if any, are
valued at their fair value in the best judgement of Fund Asset Management, L.P.
("FAM") under procedures established by, and under the supervision of, the
Trustees. Securities with remaining maturities of 60 days or less are valued by
use of the amortized cost method. Master Institutional Tax-Exempt portfolio
securities are carried at amortized cost which approximates market value.
For the purpose of valuation, the maturity of a variable rate demand
instrument is deemed to be the next coupon date on which the interest rate is to
be adjusted. In the case of a floating rate instrument, the remaining maturity
is deemed to be the demand notice payment period.
The general partner of FAM is Princeton Services, Inc. ("PSI"), an
indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML&Co."), which
is the limited partner.
(b) The Master Funds are treated as partnerships for Federal tax purposes.
No provision is made by the Master Funds for federal or state taxes on any
taxable income of the Master Funds because each investor in the Master Funds is
ultimately responsible for the payment of any taxes. Since some of 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. Government & Agency
securities pursuant to repurchase agreements with member banks of the
115
- --------------------------------------------------------------------------------
Master Institutional Money Market Trust
Notes to Financial Statements -- Continued
- --------------------------------------------------------------------------------
Federal Reserve System of primary dealers in U.S. Government securities. Under
such agreements, the bank or primary dealer agrees to repurchase the security at
a mutually agreed upon time and price. The Funds take possession of the
underlying securities, mark to market such securities daily and, if necessary,
receive additional securities to ensure that the contract is adequately
collateralized.
(f) Securities lending -- The Master Premier Institutional Fund and Master
Institutional Fund may lend securities to financial institutions that provide
cash or securities issued or guaranteed by the U.S. government as collateral,
which will be maintained at all times in an amount equal to at least 100% of the
current market value of the loaned securities. The market value of the loaned
securities is determined at the close of business of the Funds and any
additional required collateral is delivered to the 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. Effective May 13, 2005, FAM agreed to voluntarily
waive a portion of the advisory fee for the Master Premier Institutional Fund.
FAM may discontinue waiver of the fee in whole or in part at any time without
notice.
The Funds have received an exemptive order from the Securities and Exchange
Commission permitting them to lend portfolio securities to Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML&Co., or its
affiliates. As of April 30, 2005, the Master Premier Institutional Fund and the
Master Institutional Fund did not have any securities on loan. 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, in a private investment company managed by MLIM, LLC or in registered
money market funds advised by FAM or it affiliates. For the year ended April 30,
2005 the Master Premier Institutional Fund earned $1,137,492 in dividend and
interest income from affiliates on investments made with cash collateral. For
the year ended April 30, 2005, MLIM, LLC received $485,614 in securities lending
agent fees from the Master Premier Institutional Fund.
All officers and certain trustees of the Trust are affiliated with Merrill
Lynch & Co., Inc.
116
- --------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Trustees and Investors of
Master Institutional Money Market Trust:
We have audited the accompanying statements of assets and liabilities of Master
Institutional Money Market Trust (the "Master Trust"), consisting of Master
Premier Institutional Fund, Master Institutional Fund, and Master Institutional
Tax-Exempt Fund (the "Master Funds"), each a separate series of the Master
Trust, including the schedules of investments, as of April 30, 2005, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended and the
supplementary data for each of the three years in the period then ended and for
the period January 14, 2002 (commencement of operations) to April 30, 2002.
These financial statements are the responsibility of the Master Trust's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and supplementary data are free of material misstatement. The Master
Trust is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Master Trust's internal
control over financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of April 30, 2005, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of each
of the respective Master Funds of Master Institutional Money Market Trust as of
April 30, 2005, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended
and the supplementary data for each of the three years in the period then ended
and for the period January 14, 2002 (commencement of operations) to April 30,
2002, in conformity with accounting principles generally accepted in the United
States of America.
Deloitte & Touche LLP
Boston, Massachusetts
June 24, 2005
117
- --------------------------------------------------------------------------------
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 the Past 5 Years Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Interested Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Robert C. Doll, Jr.* President 2005 to President of the MLIM/FAM-advised funds since 2005; None
P.O. Box 9011 and present President of MLIM and FAM since 2001; Co-Head (Americas
Princeton, NJ 08543-9011 Trustee Region) thereof from 2000 to 2001 and Senior Vice
Age: 50 President from 1999 to 2001; President and Director of
Princeton Services, Inc. (Princeton Services) since 2001;
President of Princeton Administrators, L.P. (Princeton
Administrators) since 2001; Chief Investment Officer of
Oppenheimer Funds, Inc. in 1999 and Executive Vice
President thereof from 1991 to 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Doll is director, trustee or member of an advisory board of certain
other investment companies for which MLIM or FAM acts as investment
adviser. Mr. Doll is an "interested person," as described in the Investment
Company Act, of the Fund based on his current positions with MLIM, FAM,
Princeton Services and Princeton Administrators. The Director's term is
unlimited. Directors serve until their resignation, removal or death, or
until December 31 or the year in which they turn 72. As Fund President, Mr.
Doll serves at the pleasure of the Board of Directors.
Other
Position(s) Length Directorships
Held of Time Held by
Name, Address & Age with Fund Served** Principal Occupation(s) During the Past 5 Years Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Independent Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
David O. Beim*** Trustee 2 years Professor of Finance and Economics at the Columbia None
P.O. Box 9095 University Graduate School of Business since 1991;
Princeton, NJ 08543-9095 Chairman of Outward Bound U.S.A. from 1997 to 2001;
Age: 64 Chairman of Wave Hill, Inc. since 1990; Trustee of
Phillips Exeter Academy since 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Flynn Trustee 9 years Chief Financial Officer of J.P. Morgan & Co., Inc. from None
P.O. Box 9095 1990 to 1995 and an employee of J.P. Morgan in various
Princeton, NJ 08543-9095 capacities from 1967 to 1995.
Age: 65
- ------------------------------------------------------------------------------------------------------------------------------------
W. Carl Kester Trustee 9 years Mizuho Financial Group Professor of Finance; Senior None
P.O. Box 9095 Associate Dean and Chairman of the MBA Program of Harvard
Princeton, NJ 08543-9095 University Graduate School of Business Administration
Age: 53 since 1999; member of the Faculty of Harvard Business
School since 1981; Independent Consultant since 1978.
- ------------------------------------------------------------------------------------------------------------------------------------
118
- --------------------------------------------------------------------------------
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 the Past 5 Years Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Independent Trustees (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Karen P. Robards+ Trustee 2 years President of Robards & Company, a financial advisory firm None
P.O. Box 9095 since 1987; formerly an investment banker with Morgan
Princeton, NJ 08543-9095 Stanley for more than ten years; Director of Enable
Age: 55 Medical Corp. since 1996; Director of AtriCure, Inc. since
2000; Director of CineMuse Inc. from 1996 to 2000;
Director of the Cooke Center for Learning and Development,
a not-for-profit organization, since 1987.
- ------------------------------------------------------------------------------------------------------------------------------------
** 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 the Audit Committee.
+ Chairman of the Board.
- --------------------------------------------------------------------------------
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
Donald C. Burke
Vice President
Jeffrey Hiller
Chief Compliance Officer
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.
- --------------------------------------------------------------------------------
----------------------------------------------------------------------
Effective January 1, 2005, Terry K. Glenn, President and Trustee of
the Funds and the Trust retired. The Fund's/Trust's Board of Trustees
wishes Mr. Glenn well in his retirement.
Effective January 1, 2005, Robert C. Doll, Jr. became President and
Trustee of the Fund and the Trust.
----------------------------------------------------------------------
119
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Availability of Quarterly Schedule of Investments
- --------------------------------------------------------------------------------
The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's
web site at http://www.sec.gov. The Fund's N-Q may also be reviewed and copied
at the SEC's Public Reference Room in Washington, D.C. Information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
120
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, New York 10022
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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.
#44177
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial officer
and principal accounting officer, or persons performing similar
functions. A copy of the code of ethics is available without charge
upon request by calling toll-free 1-800-MER-FUND (1-800-637-3863).
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and
(ii) each audit committee financial expert is independent: (1) David
O. Beim, (2) W. Carl Kester, (3) James T. Flynn and (4) Karen P.
Robards.
The registrant's board of directors has determined that David O.
Beim, W. Carl Kester and Karen P. Robards qualify as financial
experts pursuant to Item 3(c)(4) of Form N-CSR.
Mr. Beim has a thorough understanding of generally accepted
accounting principles, financial statements and internal control over
financial reporting as well as audit committee functions. For 25
years, Mr. Beim was an investment banker actively engaged in
financial analysis for securities transactions and mergers. These
transactions presented a breadth and level of complexity of
accounting issues that are generally comparable to the breadth and
complexity of issues that can reasonably be expected to be raised by
the Registrant's financial statements. Mr. Beim has also been a
professor of finance and economics at the Columbia University
Graduate School of Business for the past 12 years.
Prof. Kester has a thorough understanding of generally accepted
accounting principles, financial statements and internal control over
financial reporting as well as audit committee functions. Prof.
Kester has been involved in providing valuation and other financial
consulting services to corporate clients since 1978. Prof. Kester's
financial consulting services present a breadth and level of
complexity of accounting issues that are generally comparable to the
breadth and complexity of issues that can reasonably be expected to
be raised by the Registrant's financial statements.
Ms. Robards has a thorough understanding of generally accepted
accounting principles, financial statements and internal control over
financial reporting as well as audit committee functions. Ms. Robards
has been President of Robards & Company, a financial advisory firm,
since 1987. Ms. Robards was formerly an investment banker for more
than 10 years where she was responsible for evaluating and assessing
the performance of companies based on their financial results. Ms.
Robards has over 30 years of experience analyzing financial
statements. She also is the member of the Audit Committees of two
privately held companies and a non-profit organization.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2005 - $26,400
Fiscal Year Ending April 30, 2004 - $25,900
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2005 - $34,600
Fiscal Year Ending April 30, 2004 - $33,900
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2005 - $37,000
Fiscal Year Ending April 30, 2004 - $35,000
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2005 - $7,500
Fiscal Year Ending April 30, 2004 - $7,300
Master Institutional Fund Fiscal Year Ending April 30, 2005 - $38,000
Fiscal Year Ending April 30, 2004 - $36,000
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2005 - $7,500
Fiscal Year Ending April 30, 2004 - $7,300
Master Premier Institutional Fund Fiscal Year Ending April 30, 2005 - $63,000
Fiscal Year Ending April 30, 2004 - $60,000
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2005 - $7,500
Fiscal Year Ending April 30, 2004 - $7,300
(b) Audit-Related Fees
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Master Institutional Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Master Premier Institutional Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
(c) Tax Fees
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2005 - $4,250
Fiscal Year Ending April 30, 2004 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2005 - $4,250
Fiscal Year Ending April 30, 2004 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2005 - $1,100
Fiscal Year Ending April 30, 2004 - $1,000
The nature of the services include tax compliance, tax advice and tax planning.
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2005 - $4,250
Fiscal Year Ending April 30, 2004 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
Master Institutional Fund Fiscal Year Ending April 30, 2005 - $1,100
Fiscal Year Ending April 30, 2004 - $1,000
The nature of the services include tax compliance, tax advice and tax planning.
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2005 - $4,250
Fiscal Year Ending April 30, 2004 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
Master Premier Institutional Fund Fiscal Year Ending April 30, 2005 - $1,100
Fiscal Year Ending April 30, 2004 - $1,000
The nature of the services include tax compliance, tax advice and tax planning.
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2005 - $4,250
Fiscal Year Ending April 30, 2004 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
(d) All Other Fees
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Master Institutional Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Master Premier Institutional Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2005 - $0
Fiscal Year Ending April 30, 2004 - $0
(e)(1) The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to
the registrant's affiliated service providers that relate directly to
the operations and the financial reporting of the registrant. Certain
of these non-audit services that the Committee believes are a)
consistent with the SEC's auditor independence rules and b) routine
and recurring services that will not impair the independence of the
independent accountants may be approved by the Committee without
consideration on a specific case-by-case basis ("general
pre-approval"). However, such services will only be deemed
pre-approved provided that any individual project does not exceed
$5,000 attributable to the registrant or $50,000 for all of the
registrants the Committee oversees. Any proposed services exceeding
the pre-approved cost levels will require specific pre-approval by
the Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ending April 30, 2005 - $9,780,582
Fiscal Year Ending April 30, 2004 - $17,002,957
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling,
controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $945,000, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(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.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17
CFR 270.30a-3(d)) that occurred during the second fiscal half-year of
the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Merrill Lynch Funds for Institutions Series and Master Institutional
Money Market Trust
By: /s/ Robert C. Doll, Jr.
-----------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: June 20, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: June 20, 2005
By: /s/ William M. Breen
-----------------------------
William M. Breen,
Chief Financial Officer of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: June 20, 2005