UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21759
Name of Fund: Merrill Lynch Global Equity Opportunities 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 Global Equity Opportunities Fund, 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: 10/31/06
Date of reporting period: 11/01/05 - 04/30/06
Item 1 - Report to Stockholders
Semi-Annual Report
April 30, 2006
Merrill Lynch Global
Equity Opportunities Fund
Merrill Lynch Global Equity Opportunities Fund
Announcement to Shareholders
On February 15, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch & Co.,
Inc. ("Merrill Lynch") entered into an agreement to contribute Merrill Lynch's
investment management business, Merrill Lynch Investment Managers, L.P. and
certain affiliates (including Fund Asset Management, L.P. and Merrill Lynch
Investment Managers International Limited), to BlackRock to create a new
independent company that will be one of the world's largest asset management
firms with over $1 trillion in assets under management (based on combined assets
under management as of March 31, 2006). The transaction is expected to close in
the third quarter of 2006, at which time the new company will operate under the
BlackRock name. The Fund's Board of Trustees has approved a new investment
advisory agreement with BlackRock Advisors, Inc. or its successor ("BlackRock
Advisors") on substantially the same terms and for the same advisory fee as the
current investment advisory agreement with the Investment Adviser. If the new
agreement is approved by the Fund's shareholders, BlackRock Advisors is expected
to become the Fund's investment adviser upon the closing of the transaction
between Merrill Lynch and BlackRock.
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 Forms N-Q may also be reviewed and copied at the
SEC's Public Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Electronic Delivery
The Fund offers electronic delivery of communications to its shareholders. In
order to receive this service, you must register your account and provide us
with e-mail information. To sign up for this service, simply access this Web
site at http://www.icsdelivery.com/live and follow the instructions. When you
visit this site, you will obtain a personal identification number (PIN). You
will need this PIN should you wish to update your e-mail address, choose to
discontinue this service and/or make any other changes to the service. This
service is not available for certain retirement accounts at this time.
2 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
A Letter From the President
Dear Shareholder
You may be aware that changes are on the horizon at Merrill Lynch Investment
Managers ("MLIM"). On February 15, 2006, Merrill Lynch announced plans to
combine the firm's investment advisory business, including MLIM, with another
highly regarded investment manager -- BlackRock, Inc. ("BlackRock").
We believe this merger of asset management strength will benefit our investors.
MLIM is a leading investment management organization with over $576 billion in
assets under management globally and 2,757 employees in 17 countries. It offers
over 100 investment strategies in vehicles ranging from mutual funds to
institutional portfolios. BlackRock is one of the largest publicly traded
investment management firms in the United States with $463.1 billion in assets
under management and 1,839 employees. It manages assets on behalf of
institutional and individual investors worldwide through a variety of equity,
fixed income, liquidity and alternative investment products.
At the completion of the transaction, which is expected in the third quarter of
this year, the resultant firm will be a top-10 investment manager worldwide with
over $1 trillion in assets under management.* The combined company will provide
a wider selection of high-quality investment solutions across a range of asset
classes and investment styles. MLIM and BlackRock possess complementary
capabilities that together create a well-rounded organization uniting some of
the finest money managers in the industry. At the same time, the firms share
similar values and beliefs -- they are focused on delivering excellence on
behalf of clients, and both make investment performance their single most
important mission. In short, the merger only reinforces our commitment to
shareholders.
Most of MLIM's investment products -- including mutual funds, separately managed
accounts, annuities and variable insurance funds -- eventually will carry the
"BlackRock" name. As a shareholder in one or more MLIM-advised mutual funds, you
will receive a proxy package in the coming weeks in connection with this
transaction. After you receive this information, should you have any questions
or concerns, do not hesitate to contact your financial advisor.
As always, we thank you for entrusting us with your investment assets, and we
look forward to continuing to serve your investment needs with even greater
strength and scale as the new BlackRock.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
President and Chief Investment Officer
Merrill Lynch Investment Managers
* $1.039 trillion in assets under management as of March 31, 2006.
Data, including assets under management, are as of March 31, 2006.
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 3
A Discussion With Your Fund's Portfolio Managers
We are pleased to provide you with this first semi-annual report to
shareholders for Merrill Lynch Global Equity Opportunities Fund.
How has the Fund performed since its inception in light of the existing market
conditions?
The Fund was launched on November 4, 2005 with net assets totaling $84.9
million. From its launch date through April 30, 2006, the Fund generated a
positive, double-digit return that outpaced that of its Reference Portfolio,
which comprises 60% U.S. equities and 40% non-U.S. equities, as represented by
the Standard & Poor's 500 (S&P 500) Index and the Financial Times Stock Exchange
(FTSE) World Index (ex-U.S.), respectively.
Since inception (November 4, 2005) through April 30, 2006, Merrill Lynch Global
Equity Opportunities Fund's Class A, Class B, Class C and Class I Shares had
total returns of +17.40%, +17.00%, +17.00% and +17.60%, respectively. (Fund
results shown do not reflect sales charges and would be lower if sales charges
were included. Complete performance information can be found on pages 6 and 7 of
this report to shareholders.) These results compared to the +13.73% return of
the Fund's Reference Portfolio and the +15.22% return of its broad-based,
all-equity benchmark, the FTSE World Index, for the same period. Returns for
each component of the Reference Portfolio for the period from November 4, 2005,
through April 30, 2006, were +8.43% for the S&P 500 Index and +21.98% for the
FTSE World Index (ex-U.S.).
The Fund was able to capitalize on favorable equity performance in most
developed markets around the world. From November 4, 2005 through April 30,
2006, U.S. stocks, as measured by the S&P 500 Index, gained 8.43%, while the
MSCI Europe Index returned +19.90% and the MSCI Pacific Index returned +21.90%.
The Pacific region's strong advance was led by South Korea, Japan and India
where the KOSPI, Nikkei and Sensex indexes rose 29.16%, 25.44% and 47.80%,
respectively. Advances in equity prices were propelled by rising gross domestic
product and strong corporate profits in the world's developed economies, despite
increasing interest rates and energy prices. Oil prices, which reached an
all-time high of $75 per barrel on April 21, 2006, rose more than 22% over the
past six months. Meanwhile, the U.S. Federal Reserve Board continued its
campaign to normalize short-term interest rates, increasing the federal funds
rate to 5% on May 10, 2006, which marked the 16th consecutive interest rate hike
since June 2004. Over the past six months, amid concerns regarding the magnitude
of the U.S. current account deficit, the U.S. dollar declined slightly more than
5% on a trade-weighted basis against a basket of global currencies.
What factors contributed to the Fund's performance during the period?
After the Fund's launch on November 4, we were quickly able to achieve a fully
invested stance. The Fund's performance since inception benefited from a
significant overweight, relative to the Reference Portfolio, in Asian equities,
notably in India, Japan and South Korea, and favorable stock selection in the
United States as global equity markets appreciated. The Fund's performance was
further enhanced by effective security selection in the industrials, energy and
consumer staples sectors, as the price of oil continued to rise and consumer
spending remained strong. In addition, growth in Asia, notably in China,
continued to fuel increased demand for raw materials, particularly energy
resources, and capital investment in energy-related production. Detracting
somewhat from the Fund's relative results was an underweight position in
European equities, as these markets appreciated during the reporting period.
How have you managed the portfolio since its inception?
We focused on attractively valued stocks around the world, particularly in Asia.
We believe valuations in Asia, notably Japan, remain attractive relative to the
rest of the world, despite sharp appreciation in these markets over the past
year. Our strategy included increasing the quality of the portfolio and taking
profits in those stocks that had significantly appreciated, notably trimming our
overweight positions in the strong-performing materials and energy sectors.
During the period, we reduced the Fund's exposure to U.S. equities slightly
while increasing exposure to stocks in Brazil and Asia. We believe corporate
earnings growth rates in the United States will continue to slow and the
sustainability of consumer spending will abate as interest rates rise and
inflation expectations increase. The Fund's position in cash equivalent
securities remained in the area of 2% - 3% of net assets over the period. Cash
is actively managed and, as such, allocations to cash are an integral part of
the Fund's investment strategy.
4 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
How would you characterize the Fund's position at the close of the period?
The investment team continues to look for undervalued companies that are
expected to generate above-average rates of return. Relative to its Reference
Portfolio, the Fund ended the period underweight in U.S. and European stocks and
overweight in Asian stocks. From a sector perspective, the Fund was overweight
in the energy, financials, materials, industrials and telecommunications sectors
and underweight in health care, consumer discretionary and technology. The Fund
had relatively neutral weightings in the utilities and consumer staples sectors.
As for currency exposure, we ended the period with underweights in the U.S.
dollar, British pound sterling and the euro, and small overweight positions in
several Asian currencies.
The Fund is currently diversified across 35 countries worldwide and has the
flexibility to invest across all industry sectors, market capitalizations and
equity-like securities, which include convertible and preferred securities. The
Fund has a total return approach, as opposed to one that is benchmark-driven. We
continue our search for the greatest opportunities that the world's equity
markets have to offer, targeting companies that have attractive valuations and
long-term growth prospects.
Dennis Stattman
Vice President and Senior Portfolio Manager
Dan Chamby
Vice President and Associate Portfolio Manager
May 15, 2006
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 5
Performance Data
About Fund Performance
Investors are able to purchase shares of the Fund through multiple pricing
alternatives:
o Class A Shares incur a maximum initial sales charge (front-end load) of
5.25% and an account maintenance fee of 0.25% per year (but no
distribution fee).
o Class B Shares are subject to a maximum contingent deferred sales charge
of 4% declining to 0% after six years. In addition, Class B Shares are
subject to a distribution fee of 0.75% per year and an account maintenance
fee of 0.25% per year. These shares automatically convert to Class A
Shares after approximately eight years. (There is no initial sales charge
for automatic share conversions.) All returns for periods greater than
eight years reflect this conversion.
o Class C Shares are subject to a distribution fee of 0.75% per year and an
account maintenance fee of 0.25% per year. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
o Effective December 28, 2005, Class I Shares are no longer subject to any
front-end sales charge. Class I Shares bear no ongoing distribution or
account maintenance fees and are available only to eligible investors. Had
the sales charge been included, the Fund's Class I Shares' performance
would have been lower.
None of the past results shown should be considered a representation of future
performance. Current performance may be lower or higher than the performance
data quoted. Refer to www.mlim.ml.com to obtain performance data current to the
most recent month-end. Performance results do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. The Fund may charge a 2% redemption fee for sales or exchanges of shares
within 30 days of purchase or exchange. Performance data does not reflect this
potential fee. Figures shown in each of the following tables assume reinvestment
of all dividends and capital gain distributions, if any, at net asset value on
the ex-dividend date. Investment return and principal value of shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. Dividends paid to each class of shares will vary because of the
different levels of account maintenance, distribution and transfer agency fees
applicable to each class, which are deducted from the income available to be
paid to shareholders.
Recent Performance Results
Since Inception
As of April 30, 2006 Total Return
================================================================================
ML Global Equity Opportunities Fund Class A Shares* +17.40%
- --------------------------------------------------------------------------------
ML Global Equity Opportunities Fund Class B Shares* +17.00
- --------------------------------------------------------------------------------
ML Global Equity Opportunities Fund Class C Shares* +17.00
- --------------------------------------------------------------------------------
ML Global Equity Opportunities Fund Class I Shares* +17.60
- --------------------------------------------------------------------------------
FTSE World Index** +15.22
- --------------------------------------------------------------------------------
S&P 500(R) Index*** + 8.43
- --------------------------------------------------------------------------------
FTSE World Index (Ex-U.S.)**** +21.98
- --------------------------------------------------------------------------------
Reference Portfolio***** +13.73
- --------------------------------------------------------------------------------
* Investment results shown do not reflect sales charges; results shown would
be lower if a sales charge was included. Cumulative total investment
returns are based on changes in net asset values for the periods shown,
and assume reinvestment of all dividends and capital gains distributions
at net asset value on the ex-dividend date. The Fund's inception date is
11/04/05.
** This unmanaged broad-based capitalization-weighted Index is comprised of
2,200 equities from 24 countries in 12 regions, including the United
States. Since inception total return is from 11/04/05.
*** This unmanaged Index covers 500 industrial, utility, transportation and
financial companies of the U.S. markets (mostly NYSE issues) representing
about 75% of NYSE market capitalization and 30% of NYSE issues. Since
inception total return is from 11/04/05.
**** This unmanaged capitalization-weighted Index is comprised of 1,631
companies in 28 countries, excluding the United States. Since inception
total return is from 11/04/05.
***** The Reference Portfolio is an unmanaged Index comprised of 60% of the S&P
500 Index and 40% of the FTSE World Index (Ex-U.S.). Since inception total
return is from 11/04/05.
S&P 500 is a registered trademark of the McGraw-Hill Companies.
6 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Performance Data (concluded)
Aggregate Total Return
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Class A Shares*
================================================================================
Inception (11/04/05)
to 4/30/06 +17.40% +11.24%
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Class B Shares+
================================================================================
Inception (11/04/05)
to 4/30/06 +17.00% +13.00%
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Class C Shares++
================================================================================
Inception (11/04/05)
to 4/30/06 +17.00% +16.00%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class I Shares Return
================================================================================
Inception (11/04/05)
to 4/30/06 +17.60%
- --------------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
+ Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
++ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
+++ Assuming payment of applicable contingent deferred sales charge.
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 7
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses related
to transactions, including sales charges, redemption fees and exchange fees; and
(b) operating expenses, including advisory fees, distribution fees including
12b-1 fees, and other Fund expenses. The following example (which is based on a
hypothetical investment of $1,000 invested on November 4, 2005 and held through
April 30, 2006) is intended to assist shareholders both in calculating expenses
based on an investment in the Fund 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 Fund's 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 this Fund 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, shareholder expenses would have been higher.
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value November 4, 2005 to
November 4, 2005 April 30, 2006 April 30, 2006
=====================================================================================================================
Actual
=====================================================================================================================
Class A $ 1,000 $1,174.00 $ 8.02
- ---------------------------------------------------------------------------------------------------------------------
Class B $ 1,000 $1,170.00 $ 11.98
- ---------------------------------------------------------------------------------------------------------------------
Class C $ 1,000 $1,170.00 $ 11.98
- ---------------------------------------------------------------------------------------------------------------------
Class I $ 1,000 $1,176.00 $ 6.66
=====================================================================================================================
Hypothetical (5% annual return before expenses)**
=====================================================================================================================
Class A $ 1,000 $1,016.72 $ 7.44
- ---------------------------------------------------------------------------------------------------------------------
Class B $ 1,000 $1,013.06 $ 11.11
- ---------------------------------------------------------------------------------------------------------------------
Class C $ 1,000 $1,013.06 $ 11.11
- ---------------------------------------------------------------------------------------------------------------------
Class I $ 1,000 $1,017.98 $ 6.18
- ---------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.53% for Class A, 2.29% for Class B, 2.29% for Class
C and 1.27% for Class I), multiplied by the average account value over the
period, multiplied by 176/365 (to reflect the one-half year period shown).
** 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.
8 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Portfolio Information
Worldwide Investments as of April 30, 2006
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
- --------------------------------------------------------------------------------
McDermott International, Inc. .......................... 1.6%
General Electric Co. ................................... 1.2
Reliance Industries, Ltd. .............................. 1.1
Millea Holdings, Inc. .................................. 1.1
Exxon Mobil Corp. ...................................... 1.1
CSX Corp. .............................................. 1.0
Mitsui Sumitomo Insurance Co., Ltd. .................... 1.0
American International Group, Inc. ..................... 0.9
Cisco Systems, Inc. .................................... 0.9
Microsoft Corp. ........................................ 0.9
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Five Largest Industries Percent of
(Equity Investments) Net Assets
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels ............................ 10.4%
Commercial Banks ....................................... 8.9
Insurance .............................................. 8.2
Metals & Mining ........................................ 3.9
Construction & Engineering ............................. 3.8
- --------------------------------------------------------------------------------
For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease.
- --------------------------------------------------------------------------------
Breakdown of Equity & Fixed Income Percent of
Securities By Country Net Assets+
- --------------------------------------------------------------------------------
United States .......................................... 46.9%*
Japan .................................................. 14.0
United Kingdom ......................................... 6.0
India .................................................. 3.9
France ................................................. 3.1
South Korea ............................................ 2.8
Germany ................................................ 2.7
Singapore .............................................. 2.1
Brazil ................................................. 1.9
Italy .................................................. 1.7
Canada ................................................. 1.5
Australia .............................................. 1.5
Switzerland ............................................ 1.3
Hong Kong .............................................. 1.2
Taiwan ................................................. 1.0
Thailand ............................................... 1.0
Malaysia ............................................... 0.9
Netherlands ............................................ 0.7
Sweden ................................................. 0.7
China .................................................. 0.6
Spain .................................................. 0.6
Mexico ................................................. 0.4
Finland ................................................ 0.4
Norway ................................................. 0.4
Ireland ................................................ 0.4
Israel ................................................. 0.4
Hungary ................................................ 0.2
South Africa ........................................... 0.2
New Zealand ............................................ 0.2
Belgium ................................................ 0.1
Chile .................................................. 0.0**
Peru ................................................... 0.0**
Indonesia .............................................. 0.0**
Luxembourg ............................................. 0.0**
- --------------------------------------------------------------------------------
* Includes investments in short-term securities.
** Holdings are less than 0.1%.
+ Total may not equal 100%.
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 9
Schedule of Investments (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
Australia--1.5%
Beverages--0.1%
Coca-Cola Amatil Ltd. 19,300 $ 106,607
- -----------------------------------------------------------------------------------
Capital Markets--0.2%
Macquarie Bank Ltd. 9,800 530,911
- -----------------------------------------------------------------------------------
Food Products--0.1%
Great Southern Plantations Ltd. 28,200 83,661
- -----------------------------------------------------------------------------------
Metals & Mining--0.5%
BHP Billiton Ltd. 20,000 444,627
Newcrest Mining Ltd. 12,500 216,243
Rio Tinto Ltd. 6,300 375,956
Zinifex Ltd. 18,300 143,711
------------
1,180,537
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.1%
Excel Coal Ltd. 19,500 126,206
Woodside Petroleum Ltd. 3,800 134,936
------------
261,142
- -----------------------------------------------------------------------------------
Transportation Infrastructure--0.5%
Macquarie Airports 48,700 121,199
Macquarie Infrastructure Group 273,500 740,838
Transurban Group 58,400 292,452
------------
1,154,489
- -----------------------------------------------------------------------------------
Total Common Stocks in Australia 3,317,347
===================================================================================
Belgium--0.1%
Leisure Equipment & Products--0.1%
AGFA-Gevaert NV 15,498 313,720
- -----------------------------------------------------------------------------------
Total Common Stocks in Belgium 313,720
===================================================================================
Brazil--1.9%
Airlines--0.1%
Gol--Linhas Aereas Inteligentes SA (b) 3,300 122,331
- -----------------------------------------------------------------------------------
Chemicals--0.1%
Braskem SA 18,100 127,230
- -----------------------------------------------------------------------------------
Commercial Banks--0.0%
Uniao de Bancos Brasileiros SA (b) 1,200 95,220
- -----------------------------------------------------------------------------------
Construction & Engineering--0.1%
Obrascon Huarte Lain Brasil SA (a) 10,400 126,764
- -----------------------------------------------------------------------------------
Electric Utilities--0.0%
Cia Energetica de Minas Gerais (b) 2,200 104,258
- -----------------------------------------------------------------------------------
Food & Staples Retailing--0.0%
Cia Brasileira de Distribuicao Grupo
Pao de Acucar 2,800,000 108,050
- -----------------------------------------------------------------------------------
Food Products--0.2%
Cosan SA Industria e Comercio (a) 4,400 337,903
- -----------------------------------------------------------------------------------
Internet & Catalog Retail--0.1%
Submarino SA 6,500 175,613
- -----------------------------------------------------------------------------------
Metals & Mining--0.2%
Companhia Vale do Rio Doce
(Preference 'A' Shares) (b) 7,100 315,808
Usinas Siderurgicas de Minas Gerais SA
Preferred Class A 5,600 212,887
------------
528,695
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.8%
Petroleo Brasileiro SA (b) 17,100 1,689,993
- -----------------------------------------------------------------------------------
Paper & Forest Products--0.0%
Aracruz Celulose SA (b) 1,700 93,636
- -----------------------------------------------------------------------------------
Road & Rail--0.0%
Localiza Rent A Car SA 4,600 96,784
- -----------------------------------------------------------------------------------
Software--0.1%
Totvs SA (a) 9,600 188,213
- -----------------------------------------------------------------------------------
Transportation Infrastructure--0.1%
All America Latina Logistica SA 2,400 151,500
- -----------------------------------------------------------------------------------
Water Utilities--0.0%
Companhia de Saneamento de
Minas Gerais (a) 8,900 89,670
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--0.1%
Vivo Participacoes SA (b) 29,600 122,248
- -----------------------------------------------------------------------------------
Total Common Stocks in Brazil 4,158,108
===================================================================================
Canada--1.5%
Chemicals--0.1%
Agrium Inc. 4,200 108,444
- -----------------------------------------------------------------------------------
Communications Equipment--0.1%
Nortel Networks Corp. (a) 71,000 188,860
- -----------------------------------------------------------------------------------
Insurance--0.0%
Sun Life Financial, Inc. 300 12,618
- -----------------------------------------------------------------------------------
Metals & Mining--0.8%
Alamos Gold, Inc. (a) 33,800 318,228
Barrick Gold Corp. 7,497 228,509
Bema Gold Corp. (a) 192,000 1,082,897
IPSCO, Inc. 100 10,318
Kinross Gold Corp. (a) 19,700 241,325
------------
1,881,277
- -----------------------------------------------------------------------------------
Pharmaceuticals--0.0%
Biovail Corporation 500 13,030
- -----------------------------------------------------------------------------------
Road & Rail--0.5%
Canadian Pacific Railway Ltd. 21,500 1,140,646
- -----------------------------------------------------------------------------------
Total Common Stocks in Canada 3,344,875
10 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
Chile--0.0%
Electric Utilities--0.0%
Enersis SA (b) 8,900 $ 108,669
- -----------------------------------------------------------------------------------
Total Common Stocks in Chile 108,669
===================================================================================
China--0.5%
Automobiles--0.0%
Denway Motors Ltd. 161,500 65,090
- -----------------------------------------------------------------------------------
Insurance--0.1%
China Life Insurance Co. Ltd. (b) 2,100 113,232
- -----------------------------------------------------------------------------------
Electrical Equipment--0.1%
Shanghai Electric Group Corp. 398,000 153,992
- -----------------------------------------------------------------------------------
Insurance--0.0%
Ping An Insurance Group Co. of
China Ltd. 32,200 88,664
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.2%
China Shenhua Energy Co. Ltd. Class H 124,200 225,057
Yanzhou Coal Mining Co. Ltd. 190,400 162,071
------------
387,128
- -----------------------------------------------------------------------------------
Road & Rail--0.1%
Guangshen Railway Co. Ltd. 804,600 308,717
- -----------------------------------------------------------------------------------
Transportation Infrastructure--0.0%
Hainan Meilan International
Airport Co., Ltd. 93,400 53,002
- -----------------------------------------------------------------------------------
Total Common Stocks in China 1,169,825
===================================================================================
Finland--0.4%
Electric Utilities--0.4%
Fortum Oyj 36,284 915,018
- -----------------------------------------------------------------------------------
Total Common Stocks in Finland 915,018
===================================================================================
France--3.1%
Automobiles--0.6%
Peugeot SA 9,448 620,052
Renault SA 7,082 820,719
------------
1,440,771
- -----------------------------------------------------------------------------------
Commercial Banks--1.2%
BNP Paribas 13,674 1,290,114
BNP Paribas (a) 825 75,187
Credit Agricole SA 30,571 1,229,972
------------
2,595,273
- -----------------------------------------------------------------------------------
Construction & Engineering--0.3%
Vinci SA 6,277 621,331
- -----------------------------------------------------------------------------------
Food & Staples Retailing--0.3%
Carrefour SA 12,703 735,743
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.7%
Total SA 5,679 1,568,061
- -----------------------------------------------------------------------------------
Total Common Stocks in France 6,961,179
===================================================================================
Germany--2.7%
Air Freight & Logistics--0.4%
Deutsche Post AG 30,340 807,543
- -----------------------------------------------------------------------------------
Chemicals--0.3%
BASF AG 8,790 752,476
- -----------------------------------------------------------------------------------
Commercial Banks--0.2%
Deutsche Postbank AG 7,130 544,268
- -----------------------------------------------------------------------------------
Construction & Engineering--0.3%
Hochtief AG 8,987 613,571
- -----------------------------------------------------------------------------------
Industrial Conglomerates--0.6%
Siemens AG 12,894 1,218,147
- -----------------------------------------------------------------------------------
Insurance--0.2%
Allianz AG Registered Shares 3,059 511,330
- -----------------------------------------------------------------------------------
Metals & Mining--0.4%
ThyssenKrupp AG 28,926 952,091
- -----------------------------------------------------------------------------------
Multi-Utilities--0.3%
RWE AG 8,704 753,447
- -----------------------------------------------------------------------------------
Total Common Stocks in Germany 6,152,873
===================================================================================
Hong Kong--1.1%
Electric Utilities--0.2%
Cheung Kong Infrastructure Holdings Ltd. 106,100 346,202
- -----------------------------------------------------------------------------------
Industrial Conglomerates--0.3%
Hutchison Whampoa Ltd. 75,000 736,105
- -----------------------------------------------------------------------------------
Real Estate--0.6%
Cheung Kong Holdings Ltd. 38,200 430,348
Sun Hung Kai Properties Ltd. 47,300 540,491
Wharf Holdings Ltd. 89,500 358,986
------------
1,329,825
- -----------------------------------------------------------------------------------
Total Common Stocks in Hong Kong 2,412,132
===================================================================================
Hungary--0.2%
Oil, Gas & Consumable Fuels--0.2%
Mol Magyar Olaj--es Gazipari Rt. 4,572 543,241
- -----------------------------------------------------------------------------------
Total Common Stocks in Hungary 543,241
===================================================================================
India--3.0%
Automobiles--0.3%
Bajaj Auto Ltd. 9,100 595,932
Tata Motors Ltd. 6,000 124,108
------------
720,040
- -----------------------------------------------------------------------------------
Chemicals--1.1%
Reliance Industries Ltd. 112,400 2,522,024
- -----------------------------------------------------------------------------------
Commercial Banks--0.1%
State Bank of India Ltd. 9,200 180,733
- -----------------------------------------------------------------------------------
Construction Materials--0.2%
Gujarat Ambuja Cements Ltd. 152,600 395,642
- -----------------------------------------------------------------------------------
Consumer Finance--0.0%
Reliance Capital Ventures Ltd. (a) 82,000 46,920
- -----------------------------------------------------------------------------------
IT Services--0.4%
Infosys Technologies Ltd. 13,900 969,859
- -----------------------------------------------------------------------------------
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 11
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
India (concluded)
Oil, Gas & Consumable Fuels--0.1%
Hindustan Petroleum Corp. 3,550 $ 25,450
Reliance Energy Ventures Ltd. (a) 82,000 78,230
Reliance Natural Resources Ltd. (a) 82,000 53,949
------------
157,629
- -----------------------------------------------------------------------------------
Pharmaceuticals--0.0%
Wockhardt Ltd. 2,600 25,572
- -----------------------------------------------------------------------------------
Road & Rail--0.1%
Container Corp. of India 7,700 278,582
- -----------------------------------------------------------------------------------
Thrifts & Mortgage Finance--0.4%
Housing Development Finance Corp. 26,200 757,359
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--0.3%
Reliance Communication Ventures
Ltd. (a) 82,000 548,888
- -----------------------------------------------------------------------------------
Total Common Stocks in India 6,603,248
===================================================================================
Indonesia--0.0%
Commercial Banks--0.0%
Bank Danamon Indonesia Tbk PT 103,000 60,330
- -----------------------------------------------------------------------------------
Total Common Stocks in Indonesia 60,330
===================================================================================
Ireland--0.4%
Commercial Banks--0.4%
Allied Irish Banks Plc 34,186 824,646
- -----------------------------------------------------------------------------------
Total Common Stocks in Ireland 824,646
===================================================================================
Israel--0.4%
Communications Equipment--0.3%
ECI Telecom Ltd. (a)(b) 58,300 622,644
- -----------------------------------------------------------------------------------
Pharmaceuticals--0.1%
Teva Pharmaceutical Industries Ltd. (b) 4,427 179,294
- -----------------------------------------------------------------------------------
Software--0.0%
Ectel Ltd. (a)(b) 3,100 16,988
- -----------------------------------------------------------------------------------
Total Common Stocks in Israel 818,926
===================================================================================
Italy--1.7%
Commercial Banks--0.6%
Capitalia SpA 62,321 540,099
UniCredito Italiano SpA 118,819 893,983
------------
1,434,082
- -----------------------------------------------------------------------------------
Electric Utilities--0.3%
Enel SpA 80,659 696,585
- -----------------------------------------------------------------------------------
Insurance--0.2%
Assicurazioni Generali SpA 12,790 478,656
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.6%
ENI SpA 42,359 1,292,321
- -----------------------------------------------------------------------------------
Total Common Stocks in Italy 3,901,644
===================================================================================
Japan--14.0%
Auto Components--0.2%
Toyota Industries Corp. 9,600 427,040
- -----------------------------------------------------------------------------------
Automobiles--0.8%
Honda Motor Co., Ltd. 3,700 262,110
Suzuki Motor Corp. 61,200 1,489,807
------------
1,751,917
- -----------------------------------------------------------------------------------
Beverages--0.6%
Coca-Cola Central Japan Co., Ltd. 39 368,827
Coca-Cola West Japan Co., Ltd. 15,600 383,853
Hokkaido Coca-Cola Bottling Co., Ltd. 11,000 74,939
Kinki Coca-Cola Bottling Co., Ltd. 18,200 201,602
Mikuni Coca-Cola Bottling Co., Ltd. 25,100 294,299
------------
1,323,520
- -----------------------------------------------------------------------------------
Building Products--0.2%
Asahi Glass Co., Ltd. 29,200 411,152
- -----------------------------------------------------------------------------------
Capital Markets--0.4%
Nomura Holdings, Inc. 40,200 906,436
- -----------------------------------------------------------------------------------
Chemicals--0.6%
Shin-Etsu Chemical Co., Ltd. 13,200 760,560
Sumitomo Chemical Co., Ltd. 72,100 630,086
------------
1,390,646
- -----------------------------------------------------------------------------------
Commercial Banks--1.7%
The Bank of Fukuoka Ltd. 49,400 424,356
The Bank of Kyoto Ltd. 54,000 623,695
The Bank of Yokohama Ltd. 46,300 362,048
Mitsubishi UFJ Financial Group, Inc. 40 626,970
Shinsei Bank Ltd. 71,400 498,299
Sumitomo Mitsui Financial Group, Inc. 105 1,149,299
------------
3,684,667
- -----------------------------------------------------------------------------------
Construction & Engineering--0.6%
JGC Corp. 38,377 670,421
Kinden Corp. 32,000 300,666
Okumura Corp. 76,400 422,809
------------
1,393,896
- -----------------------------------------------------------------------------------
Consumer Finance--0.3%
Credit Saison Co., Ltd. 12,600 658,687
- -----------------------------------------------------------------------------------
Electric Utilities--0.1%
Chubu Electric Power Co., Inc. 8,500 222,548
- -----------------------------------------------------------------------------------
Electrical Equipment--0.8%
RHJ International (a) 26,800 665,046
RHJ International (a)(f) 41,200 1,022,384
------------
1,687,430
- -----------------------------------------------------------------------------------
Electronic Equipment &
Instruments--0.4%
Hitachi Ltd. 25,900 192,095
Murata Manufacturing Co., Ltd. 10,000 725,919
------------
918,014
- -----------------------------------------------------------------------------------
Food & Staples Retailing--0.4%
Ministop Co., Ltd. 4,200 96,541
Seven & I Holdings Co. Ltd. 22,200 857,285
------------
953,826
- -----------------------------------------------------------------------------------
12 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
Japan (concluded)
Food Products--0.2%
Ajinomoto Co., Inc. 31,900 $ 396,096
House Foods Corp. 5,200 86,424
------------
482,520
- -----------------------------------------------------------------------------------
Gas Utilities--0.3%
Tokyo Gas Co., Ltd. 135,900 655,700
- -----------------------------------------------------------------------------------
Household Durables--0.1%
Rinnai Corp. 3,700 101,734
- -----------------------------------------------------------------------------------
Household Products--0.1%
Rohto Pharmaceutical Co., Ltd. 15,750 191,151
- -----------------------------------------------------------------------------------
Insurance--3.3%
Aioi Insurance Co., Ltd. 180,200 1,300,217
Millea Holdings, Inc. 120 2,385,289
Mitsui Sumitomo Insurance Co., Ltd. 168,030 2,258,547
Nipponkoa Insurance Co., Ltd. 155,900 1,388,356
------------
7,332,409
- -----------------------------------------------------------------------------------
Machinery--0.4%
Fanuc Ltd. 3,400 320,648
Kubota Corp. 58,400 658,151
------------
978,799
- -----------------------------------------------------------------------------------
Media--0.1%
Toho Co., Ltd. 16,700 322,447
- -----------------------------------------------------------------------------------
Office Electronics--0.5%
Brother Industries Ltd. 16,400 182,956
Canon, Inc. 11,800 899,982
------------
1,082,938
- -----------------------------------------------------------------------------------
Pharmaceuticals--0.7%
Shionogi & Co., Ltd. 17,700 297,738
Takeda Pharmaceutical Co., Ltd. 18,100 1,103,117
Tanabe Seiyaku Co., Ltd. 22,100 259,704
------------
1,660,559
- -----------------------------------------------------------------------------------
Real Estate--0.2%
NTT Urban Development Co. 47 384,807
- -----------------------------------------------------------------------------------
Road & Rail--0.2%
East Japan Railway Co. 56 435,937
- -----------------------------------------------------------------------------------
Tobacco--0.1%
Japan Tobacco, Inc. 65 260,683
- -----------------------------------------------------------------------------------
Trading Companies & Distributors--0.4%
Mitsubishi Corp. 41,000 989,098
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--0.3%
NTT DoCoMo, Inc. 442 657,968
- -----------------------------------------------------------------------------------
Total Common Stocks in Japan 31,266,529
===================================================================================
Luxembourg--0.0%
Wireless Telecommunication
Services--0.0%
Millicom International Cellular SA (a) 200 9,836
- -----------------------------------------------------------------------------------
Total Common Stocks in Luxembourg 9,836
===================================================================================
Malaysia--0.6%
Diversified Telecommunication
Services--0.0%
Telekom Malaysia Bhd 28,000 75,321
- -----------------------------------------------------------------------------------
Electric Utilities--0.2%
Tenaga Nasional Bhd 186,000 438,764
- -----------------------------------------------------------------------------------
Food Products--0.2%
IOI Corp. Bhd 130,900 512,838
- -----------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders--0.0%
Malakoff Bhd 11,600 31,364
- -----------------------------------------------------------------------------------
Tobacco--0.1%
British American Tobacco Malaysia Bhd 14,000 161,264
- -----------------------------------------------------------------------------------
Transportation Infrastructure--0.0%
PLUS Expressways Bhd 83,300 63,891
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--0.1%
Maxis Communications Bhd 52,100 125,776
- -----------------------------------------------------------------------------------
Total Common Stocks in Malaysia 1,409,218
===================================================================================
Mexico--0.4%
Beverages--0.2%
Fomento Economico Mexicano, SA de CV (b) 4,400 408,672
- -----------------------------------------------------------------------------------
Media--0.2%
Grupo Televisa, SA (b) 25,000 530,000
- -----------------------------------------------------------------------------------
Total Common Stocks in Mexico 938,672
===================================================================================
Netherlands--0.7%
Construction & Engineering--0.1%
Chicago Bridge & Iron Co. NV 6,700 160,599
- -----------------------------------------------------------------------------------
Diversified Financial Services--0.6%
ING Groep NV CVA 33,069 1,343,804
- -----------------------------------------------------------------------------------
Food & Staples Retailing--0.0%
Koninklijke Ahold NV (a) 9,214 76,022
- -----------------------------------------------------------------------------------
Total Common Stocks in the Netherlands 1,580,425
===================================================================================
New Zealand--0.2%
Diversified Financial Services--0.1%
Guinness Peat Group Plc 75,200 129,103
- -----------------------------------------------------------------------------------
Diversified Telecommunication
Services--0.0%
Telecom Corp. of New Zealand Ltd. 32,300 117,682
- -----------------------------------------------------------------------------------
Electric Utilities--0.1%
Contact Energy Ltd. 26,900 136,151
- -----------------------------------------------------------------------------------
Total Common Stocks in New Zealand 382,936
===================================================================================
Norway--0.4%
Oil, Gas & Consumable Fuels--0.4%
Statoil ASA 26,881 883,342
- -----------------------------------------------------------------------------------
Total Common Stocks in Norway 883,342
===================================================================================
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 13
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
Peru--0.0%
Metals & Mining--0.0%
Cia de Minas Buenaventura SA (b) 3,400 $ 103,326
- -----------------------------------------------------------------------------------
Total Common Stocks in Peru 103,326
===================================================================================
Singapore--2.1%
Commercial Banks--0.1%
Oversea-Chinese Banking Corp. 35,000 150,481
- -----------------------------------------------------------------------------------
Diversified Telecommunication
Services--0.4%
Singapore Telecommunications Ltd. 468,600 805,888
- -----------------------------------------------------------------------------------
Health Care Providers & Services--0.1%
Parkway Holdings Ltd. 209,200 345,228
- -----------------------------------------------------------------------------------
Industrial Conglomerates--0.8%
Fraser and Neave Ltd. 37,500 523,995
Keppel Corp. Ltd. 119,700 1,157,948
------------
1,681,943
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.0%
Pearl Energy Ltd. (a) 53,300 65,715
- -----------------------------------------------------------------------------------
Real Estate--0.5%
CapitaLand Ltd. 189,100 585,856
K-REIT Asia (a) 34,600 32,596
Keppel Land Ltd. 172,900 518,175
------------
1,136,627
- -----------------------------------------------------------------------------------
Transportation Infrastructure--0.1%
SembCorp Logistics Ltd. 144,400 163,427
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--0.1%
MobileOne Ltd. 192,100 261,137
- -----------------------------------------------------------------------------------
Total Common Stocks in Singapore 4,610,446
===================================================================================
South Africa--0.2%
Metals & Mining--0.1%
Gold Fields Ltd. (b) 9,500 241,395
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.1%
Sasol Ltd. 2,700 112,807
- -----------------------------------------------------------------------------------
Paper & Forest Products--0.0%
Sappi Ltd. (b) 5,900 82,836
- -----------------------------------------------------------------------------------
Total Common Stocks in South Africa 437,038
===================================================================================
South Korea--2.8%
Commercial Banks--0.1%
Pusan Bank 12,900 198,314
- -----------------------------------------------------------------------------------
Diversified Telecommunication
Services--0.5%
KT Corp. (b) 51,200 1,191,424
- -----------------------------------------------------------------------------------
Electric Utilities--0.3%
Korea Electric Power Corp. 16,100 715,214
- -----------------------------------------------------------------------------------
Electrical Equipment--0.2%
LS Cable Ltd. 8,700 359,733
- -----------------------------------------------------------------------------------
Food Products--0.3%
CJ Corp. 3,800 519,720
Nong Shim Co., Ltd. 400 111,747
------------
631,467
- -----------------------------------------------------------------------------------
Metals & Mining--0.7%
POSCO 3,100 864,398
POSCO (b) 9,400 662,418
------------
1,526,816
- -----------------------------------------------------------------------------------
Multiline Retail--0.0%
Lotte Shopping Co. (a)(b)(f) 3,100 64,748
- -----------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.1%
Cheil Industries, Inc. 4,200 152,513
- -----------------------------------------------------------------------------------
Tobacco--0.5%
KT&G Corp. 20,200 1,130,789
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--0.1%
SK Telecom Co., Ltd. 900 211,355
- -----------------------------------------------------------------------------------
Total Common Stocks in South Korea 6,182,373
===================================================================================
Spain--0.6%
Commercial Banks--0.6%
Banco Bilbao Vizcaya Argentaria SA 56,836 1,253,604
- -----------------------------------------------------------------------------------
Transportation Infrastructure--0.0%
Cintra Concesiones de Infraestructuras
de Transporte SA 6,000 81,248
- -----------------------------------------------------------------------------------
Total Common Stocks in Spain 1,334,852
===================================================================================
Sweden--0.7%
Auto Components--0.0%
Autoliv, Inc. 200 11,060
- -----------------------------------------------------------------------------------
Commercial Banks--0.3%
Svenska Handelsbanken Class A 25,021 716,502
- -----------------------------------------------------------------------------------
Diversified Financial Services--0.4%
Investor AB 40,258 784,905
- -----------------------------------------------------------------------------------
Total Common Stocks in Sweden 1,512,467
===================================================================================
Switzerland--1.3%
Capital Markets--0.8%
Credit Suisse Group 30,149 1,888,327
- -----------------------------------------------------------------------------------
Insurance--0.5%
Swiss Reinsurance Registered Shares 6,188 450,263
Zurich Financial Services AG 2,799 679,074
------------
1,129,337
- -----------------------------------------------------------------------------------
Total Common Stocks in Switzerland 3,017,664
===================================================================================
Taiwan--0.9%
Building Products--0.0%
Taiwan Glass Industrial Corp. 34,300 28,058
- -----------------------------------------------------------------------------------
Commercial Banks--0.1%
SinoPac Financial Holdings Co., Ltd. 226,000 125,375
Taishin Financial Holdings Co., Ltd. 186,400 122,685
------------
248,060
- -----------------------------------------------------------------------------------
14 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
Taiwan (concluded)
Diversified Financial Services--0.1%
Fubon Financial Holding Co. Ltd. 91,200 $ 88,324
- -----------------------------------------------------------------------------------
Diversified Telecommunication
Services--0.5%
Chunghwa Telecom Co. Ltd. 46,000 88,378
Chunghwa Telecom Co. Ltd. (b) 46,700 962,020
------------
1,050,398
- -----------------------------------------------------------------------------------
Electronic Equipment &
Instruments--0.2%
Delta Electronics, Inc. 149,900 466,999
- -----------------------------------------------------------------------------------
Insurance--0.0%
Cathay Financial Holding Co., Ltd. 40,200 90,087
- -----------------------------------------------------------------------------------
Machinery--0.0%
Yungtay Engineering Co., Ltd. 96,000 55,814
- -----------------------------------------------------------------------------------
Total Common Stocks in Taiwan 2,027,740
===================================================================================
Thailand--1.0%
Commercial Banks--0.4%
Kasikornbank PCL 14,100 25,520
Siam Commercial Bank PCL
Foreign Shares 460,000 795,848
------------
821,368
- -----------------------------------------------------------------------------------
Construction Materials--0.2%
Siam Cement PCL Foreign Shares 41,400 279,894
Siam City Cement PCL Foreign Shares 7,600 54,618
------------
334,512
- -----------------------------------------------------------------------------------
Electronic Equipment &
Instruments--0.0%
Hana Microelectronics PCL 123,100 94,201
- -----------------------------------------------------------------------------------
Food Products--0.0%
Thai Union Frozen Products PCL
Foreign Shares 38,800 32,015
- -----------------------------------------------------------------------------------
Household Durables--0.1%
Land and Houses PCL Foreign Shares 446,100 104,490
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.3%
PTT Exploration & Production PCL 72,900 244,488
PTT PCL 61,800 424,392
------------
668,880
- -----------------------------------------------------------------------------------
Transportation Infrastructure--0.0%
Bangkok Expressway PCL Foreign Shares 58,400 35,441
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--0.0%
Advanced Info Service PCL Foreign Shares 20,600 48,800
- -----------------------------------------------------------------------------------
Total Common Stocks in Thailand 2,139,707
===================================================================================
United Kingdom--6.0%
Aerospace & Defense--0.3%
BAE Systems Plc 94,842 719,728
- -----------------------------------------------------------------------------------
Beverages--0.0%
Diageo Plc (b) 600 39,750
- -----------------------------------------------------------------------------------
Commercial Banks--2.1%
Barclays Plc 110,672 1,377,969
HBOS Plc 80,206 1,403,197
HSBC Holdings Plc Hong Kong
Registered 30,200 514,911
Royal Bank of Scotland Group Plc 44,793 1,458,199
------------
4,754,276
- -----------------------------------------------------------------------------------
Food Products--0.2%
Cadbury Schweppes Plc 8,800 351,648
- -----------------------------------------------------------------------------------
Insurance--0.8%
Aviva Plc 69,601 1,013,349
Prudential Plc 67,328 787,509
------------
1,800,858
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.9%
BP Plc 73,560 904,525
Royal Dutch Shell Plc Class B 30,996 1,104,827
------------
2,009,352
- -----------------------------------------------------------------------------------
Specialty Retail--0.2%
Kesa Electricals Plc 71,327 410,983
- -----------------------------------------------------------------------------------
Transportation Infrastructure--0.4%
BAA Plc 52,716 812,069
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--1.1%
Vodafone Group Plc 798,296 1,879,078
Vodafone Group Plc (b) 25,200 597,240
------------
2,476,318
- -----------------------------------------------------------------------------------
Total Common Stocks in the United Kingdom 13,374,982
===================================================================================
United States--38.1%
Aerospace & Defense--0.1%
General Dynamics Corp. 1,800 118,116
Raytheon Co. 2,900 128,383
------------
246,499
- -----------------------------------------------------------------------------------
Air Freight & Logistics--0.1%
FedEx Corp. 2,400 276,312
- -----------------------------------------------------------------------------------
Airlines--0.0%
AMR Corp. (a) 400 9,856
- -----------------------------------------------------------------------------------
Beverages--0.4%
The Coca-Cola Co. 8,300 348,268
Constellation Brands, Inc. Class A (a) 7,100 175,370
Molson Coors Brewing Co. Class B 4,000 295,440
------------
819,078
- -----------------------------------------------------------------------------------
Biotechnology--0.1%
Amgen, Inc. (a) 1,100 74,470
Senomyx, Inc. (a) 6,200 88,722
------------
163,192
- -----------------------------------------------------------------------------------
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 15
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
United States (continued)
Capital Markets--0.9%
The Bank of New York Co., Inc. 9,700 $ 340,955
The Bear Stearns Cos., Inc. 100 14,251
Goldman Sachs Group, Inc. 100 16,029
Knight Capital Group, Inc. Class A (a) 36,400 610,064
Lehman Brothers Holdings, Inc. 700 105,805
Mellon Financial Corp. 900 33,867
Morgan Stanley 13,000 835,900
------------
1,956,871
- -----------------------------------------------------------------------------------
Chemicals--0.2%
E.I. du Pont de Nemours & Co. 6,200 273,420
Lyondell Chemical Co. 7,300 175,930
Tronox, Inc. Class B 2,359 40,814
------------
490,164
- -----------------------------------------------------------------------------------
Commercial Banks--1.0%
Bank of America Corp. 18,250 911,040
Fifth Third Bancorp 8,300 335,486
Santander BanCorp 1,100 25,630
Wachovia Corp. 4,900 293,265
Wells Fargo & Co. 8,800 604,472
------------
2,169,893
- -----------------------------------------------------------------------------------
Communications Equipment--1.6%
3Com Corp. (a) 73,900 398,321
Cisco Systems, Inc. (a) 96,800 2,027,960
Comverse Technology, Inc. (a) 3,100 70,215
Extreme Networks Inc. (a) 14,600 66,284
JDS Uniphase Corp. (a) 53,100 185,319
Lucent Technologies, Inc. (a) 17,100 47,709
Motorola, Inc. 34,000 725,900
Tellabs, Inc. (a) 4,500 71,325
------------
3,593,033
- -----------------------------------------------------------------------------------
Computers & Peripherals--1.3%
Adaptec, Inc. (a) 34,300 189,679
Brocade Communications Systems, Inc. (a) 26,300 162,008
Hewlett-Packard Co. 13,000 422,110
International Business Machines Corp. 13,500 1,111,590
Lexmark International, Inc. Class A (a) 9,600 467,520
Seagate Technology 400 10,624
Sun Microsystems, Inc. (a) 119,700 598,500
Western Digital Corp. (a) 600 12,624
------------
2,974,655
- -----------------------------------------------------------------------------------
Construction & Engineering--2.4%
Foster Wheeler Ltd. (a) 37,700 1,679,912
McDermott International, Inc. (a) 59,100 3,593,280
------------
5,273,192
- -----------------------------------------------------------------------------------
Containers & Packaging--0.2%
Crown Holdings, Inc. (a) 13,000 208,390
Smurfit-Stone Container Corp. (a) 10,800 139,860
------------
348,250
- -----------------------------------------------------------------------------------
Diversified Consumer Services--0.5%
Career Education Corp. (a) 14,900 549,363
Corinthian Colleges, Inc. (a) 40,800 607,512
------------
1,156,875
- -----------------------------------------------------------------------------------
Diversified Financial Services--0.8%
CIT Group, Inc. 200 10,802
Citigroup, Inc. 32,300 1,613,385
JPMorgan Chase & Co. 4,300 195,134
Leucadia National Corp. 200 12,150
------------
1,831,471
- -----------------------------------------------------------------------------------
Diversified Telecommunication
Services--0.5%
AT&T, Inc. 19,500 511,095
BellSouth Corp. 6,200 209,436
Cincinnati Bell, Inc. (a) 8,800 36,960
General Communication Inc. Class A (a) 15,000 180,000
Qwest Communications International
Inc. (a) 1,700 11,407
Verizon Communications, Inc. 8,000 264,240
------------
1,213,138
- -----------------------------------------------------------------------------------
Electric Utilities--0.3%
Mirant Corp. (a) 9,700 238,232
PPL Corp. 13,000 377,520
------------
615,752
- -----------------------------------------------------------------------------------
Electronic Equipment &
Instruments--0.1%
Sanmina-SCI Corp. (a) 35,700 185,283
Solectron Corp. (a) 24,900 99,600
------------
284,883
- -----------------------------------------------------------------------------------
Energy Equipment & Services--2.2%
Baker Hughes, Inc. 1,700 137,411
ENSCO International, Inc. 6,200 331,638
GlobalSantaFe Corp. 14,500 887,545
Halliburton Co. 5,150 402,472
Key Energy Services, Inc. (a) 15,400 263,186
Maverick Tube Corp. (a) 4,900 266,658
National Oilwell Varco, Inc. (a) 2,175 150,010
Noble Corp. 5,175 408,514
Rowan Cos., Inc. 7,400 328,042
Schlumberger Ltd. 14,300 988,702
Tidewater, Inc. 2,800 163,072
Todco Class A 3,875 177,746
Transocean, Inc. (a) 2,400 194,568
Weatherford International Ltd. (a) 5,175 273,913
------------
4,973,477
- -----------------------------------------------------------------------------------
Food & Staples Retailing--0.3%
Albertson's, Inc. 500 12,665
CVS Corp. 8,300 246,676
Wal-Mart Stores, Inc. 4,300 193,629
Walgreen Co. 4,300 180,299
------------
633,269
- -----------------------------------------------------------------------------------
16 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
United States (continued)
Food Products--0.4%
Archer-Daniels-Midland Co. 300 $ 10,902
ConAgra Foods, Inc. 13,000 294,840
Corn Products International, Inc. 8,800 246,400
Ralcorp Holdings, Inc. (a) 4,300 160,304
Sara Lee Corp. 5,800 103,646
------------
816,092
- -----------------------------------------------------------------------------------
Health Care Equipment & Supplies--0.3%
Bausch & Lomb, Inc. 5,100 249,645
Baxter International, Inc. 5,100 192,270
Boston Scientific Corp. (a) 4,750 110,390
Waters Corp. (a) 3,100 140,492
------------
692,797
- -----------------------------------------------------------------------------------
Health Care Providers & Services--1.1%
Aetna, Inc. 5,675 218,487
AmerisourceBergen Corp. 3,300 142,395
Cardinal Health, Inc. 200 13,470
HCA, Inc. 8,300 364,287
Health Management Associates,
Inc. Class A 2,000 41,420
HealthSouth Corp. (a) 17,600 80,608
Humana, Inc. (a) 5,870 265,207
Manor Care, Inc. 5,100 223,635
Medco Health Solutions, Inc. (a) 2,150 114,444
Tenet Healthcare Corp. (a) 31,100 258,752
Triad Hospitals, Inc. (a) 3,800 156,560
UnitedHealth Group, Inc. 5,710 284,015
WellPoint, Inc. (a) 4,525 321,275
------------
2,484,555
- -----------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--0.6%
Darden Restaurants, Inc. 300 11,880
McDonald's Corp. 28,100 971,417
Panera Bread Co. Class A (a) 2,600 192,868
Starbucks Corp. (a) 300 11,181
Wendy's International, Inc. 2,800 172,984
------------
1,360,330
- -----------------------------------------------------------------------------------
Household Durables--0.0%
Harman International Industries, Inc. 100 8,799
Whirlpool Corp. 100 8,975
------------
17,774
- -----------------------------------------------------------------------------------
Household Products--0.1%
Procter & Gamble Co. 2,900 168,809
- -----------------------------------------------------------------------------------
IT Services--0.1%
Accenture Ltd. Class A 400 11,628
Automatic Data Processing, Inc. 4,300 189,544
Ceridian Corp. (a) 500 12,115
Global Payments, Inc. 200 9,486
------------
222,773
- -----------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders--0.1%
The AES Corp. (a) 13,000 220,610
- -----------------------------------------------------------------------------------
Industrial Conglomerates--1.5%
General Electric Co. (i) 78,300 2,708,397
Tyco International Ltd. 27,700 729,895
------------
3,438,292
- -----------------------------------------------------------------------------------
Insurance--3.1%
ACE Ltd. 12,600 699,804
The Allstate Corp. 7,300 412,377
American International Group, Inc. 32,100 2,094,525
Assurant, Inc. 4,500 216,765
Bristol West Holdings, Inc. 3,400 62,764
Endurance Specialty Holdings Ltd. 12,800 396,288
Hartford Financial Services Group, Inc. 1,700 156,281
IPC Holdings, Ltd. 7,400 197,358
Lincoln National Corp. 200 11,616
Marsh & McLennan Cos., Inc. 3,400 104,278
Platinum Underwriters Holdings Ltd. 15,300 421,821
Prudential Financial, Inc. 1,700 132,821
RenaissanceRe Holdings Ltd. 6,700 281,735
The St. Paul Travelers Cos., Inc. 16,300 717,689
W.R. Berkley Corp. 300 11,226
XL Capital Ltd. Class A 14,000 922,460
------------
6,839,808
- -----------------------------------------------------------------------------------
Leisure Equipment & Products--0.0%
Mattel, Inc. 6,500 105,170
- -----------------------------------------------------------------------------------
Machinery--0.1%
Caterpillar, Inc. 200 15,148
Cummins, Inc. 100 10,450
Navistar International Corp. (a) 8,800 232,144
------------
257,742
- -----------------------------------------------------------------------------------
Media--0.8%
CBS Corp. Class B 5,300 134,991
Comcast Corp. Class A (a) 18,700 578,765
Discovery Holding Co. (a) 1,700 25,330
Liberty Global, Inc. (a) 2,000 41,420
Liberty Global, Inc. Series C (a) 2,000 39,940
Liberty Media Corp. Class A (a) 13,700 114,395
The McGraw-Hill Cos., Inc. 200 11,132
NTL, Inc. 10,650 292,662
Time Warner, Inc. 11,600 201,840
Tribune Co. 3,400 98,022
Viacom, Inc. Class B (a) 5,250 209,108
------------
1,747,605
- -----------------------------------------------------------------------------------
Metals & Mining--1.1%
AK Steel Holding Corp. (a) 5,400 80,514
Alcoa, Inc. 40,600 1,371,468
Allegheny Technologies, Inc. 200 13,868
Freeport-McMoRan Copper & Gold,
Inc. Class B 4,300 277,694
Inco Ltd. 6,600 372,702
Newmont Mining Corp. 4,600 268,456
Nucor Corp. 100 10,882
United States Steel Corp. 1,400 95,900
------------
2,491,484
- -----------------------------------------------------------------------------------
Multi-Utilities--0.0%
Alliant Energy Corp. 400 12,784
- -----------------------------------------------------------------------------------
Multiline Retail--0.0%
Nordstrom, Inc. 300 11,499
- -----------------------------------------------------------------------------------
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 17
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
United States (continued)
Oil, Gas & Consumable Fuels--5.8%
Alon USA Energy, Inc. 1,800 $ 48,294
Alpha Natural Resources, Inc. (a) 6,800 170,748
Amerada Hess Corp. (a) 1,800 257,886
Arch Coal, Inc. 3,700 351,463
Chevron Corp. 15,400 939,708
ConocoPhillips 18,700 1,251,030
Consol Energy, Inc. 1,700 144,772
Devon Energy Corp. 4,525 271,998
El Paso Corp. 116,000 1,497,560
Exxon Mobil Corp. (i) 37,400 2,359,192
Foundation Coal Holdings, Inc. 9,200 466,440
International Coal Group, Inc. (a) 34,300 353,290
James River Coal Co. (a) 1,700 59,755
Kerr-McGee Corp. 17,800 1,777,508
Marathon Oil Corp. 10,800 857,088
Massey Energy Co. 1,800 69,570
Murphy Oil Corp. 6,900 346,242
Newfield Exploration Co. (a) 4,000 178,400
Noble Energy, Inc. 3,800 170,924
Occidental Petroleum Corp. 6,200 636,988
Pogo Producing Co. 11,000 546,590
Stone Energy Corp. (a) 4,900 230,790
Williams Cos., Inc. 1,100 24,123
------------
13,010,359
- -----------------------------------------------------------------------------------
Paper & Forest Products--0.3%
Bowater, Inc. 9,400 256,338
International Paper Co. 14,100 512,535
------------
768,873
- -----------------------------------------------------------------------------------
Personal Products--0.1%
Avon Products, Inc. 7,100 231,531
- -----------------------------------------------------------------------------------
Pharmaceuticals--2.6%
Abbott Laboratories 9,400 401,756
Andrx Corp. (a) 6,100 142,191
Bristol-Myers Squibb Co. 19,200 487,296
Eli Lilly & Co. 6,500 343,980
Johnson & Johnson 19,200 1,125,312
King Pharmaceuticals, Inc. (a) 900 15,651
Merck & Co., Inc. 21,200 729,704
Pfizer, Inc. 53,900 1,365,287
Schering-Plough Corp. 14,600 282,072
Valeant Pharmaceuticals International 15,900 284,610
Watson Pharmaceuticals, Inc. (a) 3,350 95,274
Wyeth 11,200 545,104
------------
5,818,237
- -----------------------------------------------------------------------------------
Real Estate--0.3%
Aames Investment Corp. 4,450 23,585
Friedman Billings Ramsey Group,
Inc. Class A 44,800 484,288
ProLogis 1,100 55,242
Ventas, Inc. 3,100 101,277
------------
664,392
- -----------------------------------------------------------------------------------
Road & Rail--1.9%
CSX Corp. 33,250 2,277,292
Norfolk Southern Corp. 9,200 496,800
Union Pacific Corp. 17,300 1,577,933
------------
4,352,025
- -----------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment--0.4%
Advanced Micro Devices, Inc. (a) 300 9,705
Agere Systems, Inc. (a) 6,100 95,892
Cirrus Logic, Inc. (a) 12,600 119,070
Intel Corp. 25,100 501,498
Intersil Corp. Class A 400 11,844
Nvidia Corp. (a) 400 11,688
Photronics, Inc. (a) 6,000 107,820
------------
857,517
- -----------------------------------------------------------------------------------
Software--2.4%
BMC Software, Inc. (a) 23,900 514,806
Borland Software Corp. (a) 10,900 55,590
CA, Inc. 53,300 1,351,688
Compuware Corp. (a) 6,200 47,616
Microsoft Corp. (i) 83,500 2,016,525
Novell, Inc. (a) 103,100 847,482
Red Hat, Inc. (a) 400 11,756
Symantec Corp. (a) 11,700 191,646
TIBCO Software, Inc. (a) 29,600 255,152
------------
5,292,261
- -----------------------------------------------------------------------------------
Specialty Retail--0.2%
Circuit City Stores, Inc. 500 14,375
Home Depot, Inc. 5,100 203,643
Office Depot, Inc. (a) 300 12,174
Pier 1 Imports, Inc. 13,100 158,117
RadioShack Corp. 5,100 86,700
Staples, Inc. 400 10,564
------------
485,573
- -----------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.1%
Polo Ralph Lauren Corp. 200 12,144
Unifi, Inc. (a) 37,500 126,375
------------
138,519
- -----------------------------------------------------------------------------------
Thrifts & Mortgage Finance--0.3%
Fannie Mae 7,675 388,355
Washington Mutual, Inc. 6,040 272,162
------------
660,517
- -----------------------------------------------------------------------------------
Tobacco--0.4%
Alliance One International, Inc. 40,600 177,828
Altria Group, Inc. 9,100 665,756
Reynolds American, Inc. 100 10,965
------------
854,549
- -----------------------------------------------------------------------------------
Trading Companies & Distributors--0.0%
MSC Industrial Direct Co. Class A 200 10,372
- -----------------------------------------------------------------------------------
18 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
===================================================================================
United States (concluded)
Transportation Infrastructure--0.4%
Macquarie Infrastructure Co. Trust 28,100 $ 820,520
- -----------------------------------------------------------------------------------
Wireless Telecommunication
Services--0.6%
Alltel Corp. 13,200 849,684
Sprint Nextel Corp. 22,700 562,960
------------
1,412,644
- -----------------------------------------------------------------------------------
Total Common Stocks in the United States 85,295,873
===================================================================================
Total Common Stocks
(Cost--$177,389,282)--88.5% 198,113,207
===================================================================================
Preferred Stocks
===================================================================================
United States--0.2%
Thrifts & Mortgage Finance--0.2%
Fannie Mae, 5.375% (c) 5 476,084
- -----------------------------------------------------------------------------------
Total Preferred Stocks
(Cost--$460,000)--0.2% 476,084
===================================================================================
Warrants (e)
===================================================================================
United Kingdom--0.0%
Capital Markets--0.0%
Deutsche Bank AG (expires 9/15/2006) 121,096 29,715
- -----------------------------------------------------------------------------------
Total Warrants (Cost--$65,508)--0.0% 29,715
===================================================================================
Rights
===================================================================================
Hong Kong--0.0%
Industrial Conglomerates--0.0%
Hutchison China Meditech, Ltd. (g) 3 0
- -----------------------------------------------------------------------------------
Total Rights in Hong Kong 0
===================================================================================
Switzerland--0.0%
Insurance--0.0%
Swiss Reinsurance (g) 6,188 0
- -----------------------------------------------------------------------------------
Total Rights in Switzerland 0
===================================================================================
United States--0.0%
Commercial Services & Supplies--0.0%
Information Resources, Inc. (h) 13,700 9,179
- -----------------------------------------------------------------------------------
Total Rights (Cost--$5,843)--0.0% 9,179
===================================================================================
===================================================================================
Fixed Income Securities
- -----------------------------------------------------------------------------------
Face
Corporate Bonds Amount
===================================================================================
Canada--0.0%
Metals & Mining--0.0%
Bema Gold Corp., 3.25% due
2/25/2011 (c) USD 30,000 39,132
- -----------------------------------------------------------------------------------
Total Corporate Bonds in Canada 39,132
===================================================================================
China--0.1%
Industrial Conglomerates--0.1%
Beijing Enterprises Investment Ltd.,
0% due 12/21/2010 (c)(l) 285,000 337,012
- -----------------------------------------------------------------------------------
Total Corporate Bonds in China 337,012
===================================================================================
Hong Kong--0.1%
Real Estate--0.1%
Hongkong Land CB 2005 Ltd.,
2.75% due 12/21/2012 (c) 200,000 228,750
- -----------------------------------------------------------------------------------
Total Corporate Bonds in Hong Kong 228,750
===================================================================================
India--0.9%
Automobiles--0.5%
Tata Motors Ltd. Series 2, 1%
due 4/27/2011 (c) 755,000 913,550
Tata Motors Ltd., 0% due
4/27/2009 (c)(l) 125,000 188,750
------------
1,102,300
- -----------------------------------------------------------------------------------
Media--0.2%
Zee Telefilms Ltd, 0.50% due
4/29/2009 (c) 450,000 526,500
- -----------------------------------------------------------------------------------
Metals & Mining--0.1%
Gujarat NRE Coke Ltd., 0% due
4/12/2011 (c)(l) 100,000 97,750
- -----------------------------------------------------------------------------------
Thrifts & Mortgage Finance--0.1%
Housing Development Finance Corp.,
0% due 9/27/2010 (c)(l) 200,000 221,894
- -----------------------------------------------------------------------------------
Total Corporate Bonds in India 1,948,444
===================================================================================
Malaysia--0.3%
Diversified Financial Services--0.2%
Feringghi Capital Ltd., 0% due
12/22/2009 (c)(l) 300,000 309,750
- -----------------------------------------------------------------------------------
Electric Utilities--0.0%
TNB Capital (L) Ltd., 2.625% due
11/20/2007 (c) 60,000 66,825
- -----------------------------------------------------------------------------------
Food Products--0.0%
IOI Investment BHD, 0% due
9/18/2009 (c)(l) 40,000 52,954
- -----------------------------------------------------------------------------------
Multi-Utilities--0.1%
YTL Power Finance Cayman Ltd.,
0% due 5/09/2010 (c)(l) 200,000 213,000
- -----------------------------------------------------------------------------------
Total Corporate Bonds in Malaysia 642,529
===================================================================================
Taiwan--0.1%
Construction Materials--0.1%
Taiwan Cement Corp., 0% due
3/03/2009 (c)(l) 200,000 261,211
- -----------------------------------------------------------------------------------
Total Corporate Bonds in Taiwan 261,211
===================================================================================
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 19
Schedule of Investments (continued) (in U.S. dollars)
Face
Country Industry Corporate Bonds Amount Value
===================================================================================
United States--0.3%
Biotechnology--0.1%
Abgenix, Inc., 1.75% due
12/15/2011 (c) USD 60,000 $ 110,580
Cell Genesys, Inc., 3.125% due
11/01/2011 (c) 30,000 26,737
Nabi Biopharmaceuticals, 2.875%
due 4/15/2025 (c) 50,000 43,500
------------
180,817
- -----------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders--0.0%
Calpine Corp., 8.75% due
7/15/2013 (d)(f) 90,000 82,350
- -----------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels--0.2%
McMoRan Exploration Co., 5.25%
due 10/06/2011 (c) 280,000 329,000
- -----------------------------------------------------------------------------------
Total Corporate Bonds in the United States 592,167
===================================================================================
Total Corporate Bonds (Cost--$3,713,977)--1.8% 4,049,245
===================================================================================
Structured Notes
===================================================================================
United States--1.5%
The Goldman Sachs Group, Inc.:
(DAX Linked Notes), 0%
due 10/19/2007 1,500,000 1,476,747
(Topix Linked Notes), 0%
due 2/16/2008 1,000,000 1,003,180
(Topix Linked Notes, Series B),
0% due 1/31/2007 807,000 909,816
- -----------------------------------------------------------------------------------
Total Structured Notes (Cost--$3,307,000)--1.5% 3,389,743
===================================================================================
Total Fixed Income Securities (Cost--$7,020,977)--3.3% 7,438,988
===================================================================================
Beneficial
Short-Term Securities Interest
===================================================================================
United States--6.8%
Merrill Lynch Liquidity Series,
LLC Cash Sweep Series I,
4.75% (j)(k) USD 15,167,975 15,167,975
- -----------------------------------------------------------------------------------
Total Short-Term Securities (Cost--$15,167,975)--6.8% 15,167,975
===================================================================================
Number of
Options Purchased Contracts
===================================================================================
Put Options Purchased--0.0%
Schering-Plough Corp., expiring
May 2006 at USD 20 24 1,920
- -----------------------------------------------------------------------------------
Total Options Purchased (Premiums Paid--$4,224)--0.0% 1,920
===================================================================================
Total Investments (Cost--$200,113,809)--98.8% 221,237,068
===================================================================================
Options Written
===================================================================================
Call Options Written--0.9%
3Com Corp., expiring January 2007 at USD 5 178 $ (18,690)
Andrx Corp., expiring January 2007
at USD 15 35 (35,350)
Arch Coal, Inc., expiring January 2007
at USD 75 32 (83,520)
BMC Software, Inc., expiring January
2007 at USD 20 157 (54,950)
Bausch & Lomb, Inc., expiring January
2007 at USD 50 35 (17,150)
Bausch & Lomb, Inc., expiring October
2006 at USD 45 16 (11,360)
Borland Software Corp., expiring January
2007 at USD 7.5 69 (2,070)
CA, Inc., expiring January 2007 at USD 30 30 (1,800)
CBS Corp. Class B, expiring January 2007
at USD 27.5 26 (3,120)
Career Education Corp., expiring January
2007 at USD 30 51 (48,960)
Career Education Corp., expiring January
2007 at USD 35 60 (36,600)
Chicago Bridge & Iron Co. NV, expiring
January 2007 at USD 25 27 (9,720)
Cirrus Logic, Inc., expiring January 2007
at USD 7.5 104 (27,040)
Cisco Systems, Inc., expiring January
2007 at USD 17.5 169 (74,360)
Compuware Corp., expiring January
2007 at USD 7.5 36 (4,140)
Comverse Technology, Inc., expiring
January 2007 at USD 25 17 (3,230)
Corinthian Colleges, Inc., expiring
January 2007 at USD 12.5 356 (124,600)
Extreme Networks Inc., expiring January
2007 at USD 5 120 (6,000)
Fannie Mae, expiring January 2007
at USD 50 12 (6,600)
Intel Corp., expiring January 2007
at USD 25 25 (1,125)
Kerr-McGee Corp., expiring January
2007 at USD 100 44 (51,920)
Knight Capital Group, Inc. Class A,
expiring January 2007 at USD 10 208 (151,840)
Lexmark International, Inc. Class A,
expiring January 2007 at USD 50 62 (31,000)
Massey Energy Co., expiring January
2007 at USD 35 12 (8,880)
Mattel, Inc., expiring January 2007
at USD 15 48 (11,040)
McDermott International, Inc., expiring
January 2007 at USD 35 200 (552,000)
McDermott International, Inc., expiring
January 2007 at USD 40 23 (53,590)
McDermott International, Inc., expiring
January 2007 at USD 55 19 (23,370)
McDonald's Corp., expiring January
2007 at USD 35 201 (55,275)
20 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Schedule of Investments (concluded) (in U.S. dollars)
Number of
Options Written Contracts Value
===================================================================================
Call Options Written (continued)
Molson Coors Brewing Co. Class B,
expiring January 2007 at USD 60 11 $ (17,820)
Motorola, Inc., expiring January 2007
at USD 22.5 282 (53,580)
Murphy Oil Corp., expiring January 2007
at USD 50 35 (19,950)
Norfolk Southern Corp., expiring January
2007 at USD 40 53 (83,210)
Novell, Inc., expiring January 2007
at USD 7.5 1,001 (150,150)
Panera Bread Co. Class A, expiring
August 2006 at USD 65 16 (18,560)
Pfizer, Inc., expiring January 2007
at USD 25 68 (12,240)
Pogo Producing Co., expiring January
2007 at USD 50 64 (34,560)
TIBCO Software, Inc., expiring January
2007 at USD 7.5 189 (34,965)
Tellabs, Inc., expiring January 2007
at USD 12.5 45 (19,800)
Tenet Healthcare Corp., expiring January
2007 at USD 7.5 70 (12,600)
Tenet Healthcare Corp., expiring May
2006 at USD 7 47 (6,815)
Tyco International Ltd., expiring January
2007 at USD 25 30 (9,600)
Valeant Pharmaceuticals International,
expiring January 2007 at USD 15 142 (56,800)
Vodafone Group Plc, expiring January
2007 at USD 20 65 (27,950)
Wendy's International, Inc., expiring
January 2007 at USD 45 17 (31,450)
- -----------------------------------------------------------------------------------
Total Options Written
(Premiums Received--$1,255,478)--(0.9%) (2,099,350)
===================================================================================
Total Investments, Net of Options Written
(Cost--$198,858,331*)--97.9% 219,137,718
Other Assets Less Liabilities--2.1% 4,633,257
------------
Net Assets--100.0% $223,770,975
============
* The cost and unrealized appreciation (depreciation) of investments, net of
options written, as of April 30, 2006 as computed for federal income tax
purposes, were as follows:
Aggregate cost .............................. $ 198,858,331
=============
Gross unrealized appreciation ............... $ 22,900,626
Gross unrealized depreciation ............... (2,621,239)
-------------
Net unrealized appreciation ................. $ 20,279,387
=============
(a) Non-income producing security.
(b) Depositary receipts.
(c) Convertible security.
(d) Non-income producing security; issuer filed for bankruptcy or is in
default of interest payments.
(e) Warrants entitle the Fund to purchase a predetermined number of shares of
common stock and are non-income producing. The purchase price and number
of shares are subject to adjustment under certain conditions until the
expiration date.
(f) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(g) The rights may be exercised until 5/8/2006.
(h) The rights entitle the holder to potential cash distributions on pending
litigation settlements.
(i) All or a portion of security held as collateral in connection with open
financial futures contracts.
(j) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Interest
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Liquidity Series, LLC
Cash Sweep Series I $15,167,975 $ 361,261
--------------------------------------------------------------------------
(k) Represents the current yield as of 4/30/2006.
(l) Represents a zero coupon bond.
o For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease. Industries are shown as a percent of net assets.
o Financial futures contracts purchased as of April 30, 2006 were as
follows:
---------------------------------------------------------------------------------------
Number of Expiration Face Unrealized
Contracts Issue Exchange Date Value Appreciation
---------------------------------------------------------------------------------------
1 Dax Index 25 Euronext Paris June 2006 $ 183,536 $ 6,278
Euro
14 DJ Euro Stoxx Euronext Paris June 2006 657,807 10,212
10 S&P 500 Index Chicago June 2006 3,252,196 37,554
24 S&P TSE 60 Index Montreal June 2006 2,888,605 53,807
10 SPI 200 Index Sydney June 2006 971,181 25,245
22 Topix Index Tokyo June 2006 3,287,760 33,431
---------------------------------------------------------------------------------------
Total Unrealized Appreciation--Net $166,527
========
o Currency Abbreviations:
USD U.S. Dollar
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 21
Statement of Assets and Liabilities
As of April 30, 2006
====================================================================================================================================
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value
(identified cost--$184,941,610) .......................................... $206,067,173
Investments in affiliated securities, at value
(identified cost--$15,167,975) ........................................... 15,167,975
Options purchased, at value (premiums paid--$4,224) ....................... 1,920
Foreign cash (cost--$1,049,873) ........................................... 1,049,474
Cash on deposit for financial futures contracts ........................... 321,747
Receivables:
Beneficial interest sold ............................................... $ 4,650,320
Dividends .............................................................. 502,705
Securities sold ........................................................ 31,096
Interest ............................................................... 13,018 5,197,139
------------
Other assets .............................................................. 92,013
------------
Total assets .............................................................. 227,897,441
------------
====================================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Options written, at value (premiums received--$1,255,478) ................. 2,099,350
Deferred foreign capital gain tax ......................................... 203,081
Bank overdraft ............................................................ 3,143
Payables:
Securities purchased ................................................... 1,218,680
Beneficial interest redeemed ........................................... 329,628
Investment adviser ..................................................... 135,382
Distributor ............................................................ 78,827
Variation margin ....................................................... 31,734
Other affiliates ....................................................... 26,641 1,820,892
--------------------------------
Total liabilities ......................................................... 4,126,466
------------
====================================================================================================================================
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets ................................................................ $223,770,975
============
====================================================================================================================================
Net Assets Consist of
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Shares of Common Stock, $.10 par value, unlimited shares
of beneficial interest authorized ........................................ $ 504,642
Class B Shares of Common Stock, $.10 par value, unlimited shares
of beneficial interest authorized ........................................ 153,582
Class C Shares of Common Stock, $.10 par value, unlimited shares
of beneficial interest authorized ........................................ 683,453
Class I Shares of Common Stock, $.10 par value, unlimited shares
of beneficial interest authorized ........................................ 569,584
Paid-in capital in excess of par .......................................... 198,096,571
Undistributed investment income--net ...................................... $ 356,576
Undistributed realized capital gains--net ................................. 3,153,668
Unrealized appreciation--net .............................................. 20,252,899
------------
Total accumulated earnings--net ........................................... 23,763,143
------------
Net Assets ................................................................ $223,770,975
============
====================================================================================================================================
Net Asset Value
- ------------------------------------------------------------------------------------------------------------------------------------
Class A--Based on net assets of $59,152,451 and 5,046,421 shares
of beneficial interest outstanding ....................................... $ 11.72
============
Class B--Based on net assets of $17,936,975 and 1,535,817 shares
of beneficial interest outstanding ....................................... $ 11.68
============
Class C--Based on net assets of $79,836,305 and 6,834,534 shares
of beneficial interest outstanding ....................................... $ 11.68
============
Class I--Based on net assets of $66,845,244 and 5,695,844 shares
of beneficial interest outstanding ....................................... $ 11.74
============
See Notes to Financial Statements.
22 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Statement of Operations
For the Period November 4, 2005+ to April 30, 2006
====================================================================================================================================
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends (net of $79,947 foreign withholding tax) ........................ $ 1,334,656
Interest (including $361,261 from affiliates) ............................. 479,754
------------
Total income .............................................................. 1,814,410
------------
====================================================================================================================================
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees .................................................. $ 605,879
Account maintenance and distribution fees--Class C ........................ 237,046
Offering costs ............................................................ 96,370
Custodian fees ............................................................ 65,812
Account maintenance and distribution fees--Class B ........................ 59,580
Account maintenance fees--Class A ......................................... 53,195
Accounting services ....................................................... 36,000
Trustees' fees and expenses ............................................... 18,953
Registration fees ......................................................... 18,337
Transfer agent fees--Class C .............................................. 14,883
Transfer agent fees--Class A .............................................. 11,252
Professional fees ......................................................... 10,458
Transfer agent fees--Class I .............................................. 10,432
Printing and shareholder reports .......................................... 6,718
Pricing fees .............................................................. 5,155
Transfer agent fees--Class B .............................................. 3,773
Other ..................................................................... 8,988
------------
Total expenses ............................................................ 1,262,831
------------
Investment income--net .................................................... 551,579
------------
====================================================================================================================================
Realized & Unrealized Gain (Loss)--Net
- ------------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments--net (including $21,957 foreign capital gain tax) .......... 1,254,521
Financial futures contracts--net ....................................... 1,812,349
Option written--net .................................................... (1,145)
Foreign currency transactions--net ..................................... 87,943 3,153,668
------------
Unrealized appreciation/depreciation on:
Investments--net (including $203,081 deferred foreign capital gain tax) 20,920,178
Financial futures contracts--net ....................................... 166,527
Options written--net ................................................... (843,872)
Foreign currency transactions--net ..................................... 10,066 20,252,899
--------------------------------
Total realized and unrealized gain--net ................................... 23,406,567
------------
Net Increase in Net Assets Resulting from Operations ...................... $ 23,958,146
============
+ Commencement of operations.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 23
Statements of Changes in Net Assets
For the
Period Nov. 4,
2005+ to April 30,
Increase (Decrease) in Net Assets: 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net .................................................................... $ 551,579
Realized gain--net ........................................................................ 3,153,668
Unrealized appreciation--net .............................................................. 20,252,899
-------------
Net increase in net assets resulting from operations ...................................... 23,958,146
-------------
===================================================================================================================================
Dividends to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net:
Class A ................................................................................ (64,464)
Class B ................................................................................ (16,793)
Class C ................................................................................ (64,924)
Class I ................................................................................ (48,822)
-------------
Net decrease in net assets resulting from dividends to shareholders ....................... (195,003)
-------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from beneficial interest transactions .................. 199,895,423
-------------
===================================================================================================================================
Redemption Fees
- -----------------------------------------------------------------------------------------------------------------------------------
Redemption fees ........................................................................... 12,409
-------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets .............................................................. 223,670,975
Beginning of period ....................................................................... 100,000
-------------
End of period* ............................................................................ $ 223,770,975
=============
* Undistributed investment income--net ................................................. $ 356,576
=============
+ Commencement of operations.
See Notes to Financial Statements.
24 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Financial Highlights
For the Period November 4, 2005+ to April 30, 2006
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. Class A Class B Class C Class I
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...... $ 10.00 $ 10.00 $ 10.00 $ 10.00
================================================================
Investment income--net** .................. .05 .01 .01 .06
Realized and unrealized gain--net*** ...... 1.69 1.69 1.69 1.70
----------------------------------------------------------------
Total from investment operations .......... 1.74 1.70 1.70 1.76
----------------------------------------------------------------
Less dividends from investment income--net (.02) (.02) (.02) (.02)
----------------------------------------------------------------
Net asset value, end of period ............ $ 11.72 $ 11.68 $ 11.68 $ 11.74
================================================================
==================================================================================================================================
Total Investment Return++
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ........ 17.40%@ 17.00%@ 17.00%@ 17.60%@
================================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses .................................. 1.53%* 2.29%* 2.29%* 1.27%*
================================================================
Investment income--net .................... .98%* .24%* .26%* 1.30%*
================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .. $ 59,152 $ 17,937 $ 79,836 $ 66,845
================================================================
Portfolio turnover ........................ 12.25% 12.25% 12.25% 12.25%
================================================================
* Annualized.
** Based on average shares outstanding.
*** Includes redemption fee, which is less than $.01 per share.
+ Commencement of operations.
++ Total investment return excludes the effects of sales charges. Effective
December 28, 2005, Class I Shares are no longer subject to any front-end
sales charge.
@ Aggregate total investment return.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 25
Notes to Financial Statements
1. Significant Accounting Policies:
Merrill Lynch Global Equity Opportunities Fund (the "Fund") is registered under
the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. Prior to commencement of operations on November
4, 2005, the Fund had no operations other than those relating to organizational
matters and the issue of the 10,000 shares of beneficial interest of the Fund to
Fund Asset Management, L.P. ("FAM") for $100,000. The Fund's financial
statements are prepared in conformity with U.S. generally accepted accounting
principles, which may require the use of management accruals and estimates.
Actual results may differ from these estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of management,
necessary to present a fair statement of the results for the interim period. All
such adjustments are of a normal, recurring nature. The Fund offers multiple
classes of shares. Effective December 28, 2005, Class I Shares are no longer
subject to any front-end sales charge. Class A Shares are sold with a front-end
sales charge. Shares of Class B and Class C may be subject to a contingent
deferred sales charge. Class I Shares are sold only to certain eligible
investors. All classes of shares have identical voting, dividend, liquidation
and other rights and the same terms and conditions, except that Class A, Class B
and Class C Shares bear certain expenses related to the account maintenance of
such shares, and Class B and Class C Shares also bear certain expenses related
to the distribution of such shares. Each class has exclusive voting rights with
respect to matters relating to its account maintenance and distribution
expenditures (except that Class B shareholders may vote on material changes to
the Class A distribution plan). Income, expenses (other than expenses
attributable to a specific class) and realized and unrealized gains are
allocated daily to each class based on its relative net assets. The following is
a summary of significant accounting policies followed by each Fund.
(a) Valuation of investments -- Debt securities are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Fund under the general direction
of the Board of Trustees. Such valuations and procedures will be reviewed
periodically by the Board of Trustees of the Fund. Financial futures contracts
and options thereon, which are traded on exchanges, are valued at their closing
prices as of the close of such exchanges. Options written or purchased are
valued at the last sales price in the case of exchange-traded options. In the
case of options traded in the OTC market, valuation is the last asked price
(options written) or the last bid price (options purchased). Swap agreements are
valued based upon quoted fair valuations received daily by the Fund from a
pricing service or counterparty. Short-term investments with a remaining
maturity of 60 days or less are valued at amortized cost, which approximates
market value, under which method the investment is valued at cost and any
premium or discount is amortized on a straight line basis to maturity.
Repurchase agreements are valued at cost plus accrued interest. Investments in
open-end investment companies are valued at their net asset value each business
day. Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Trustees of the Fund.
Equity securities that are held by the Fund that are traded on stock exchanges
or the Nasdaq National Market are valued at the last sale price or official
close price on the exchange, as of the close of business on the day the
securities are being valued or, lacking any sales, at the last available bid
price for long positions, and at the last available asked price for short
positions. In cases where equity securities are traded on more than one
exchange, the securities are valued on the exchange designated as the primary
market by or under the authority of the Board of Trustees of the Fund. Long
positions traded in the OTC market, Nasdaq Small Cap or Bulletin Board are
valued at the last available bid price obtained from one or more dealers or
pricing services approved by the Board of Trustees of the Fund. Short positions
traded in the OTC market are valued at the last available asked price. Portfolio
securities that are traded both in the OTC market and on a stock exchange are
valued according to the broadest and most representative market.
Generally, trading in foreign securities, as well as U.S. government securities,
money market instruments and certain fixed income securities, is substantially
completed each day at various times prior to the close of business on the New
York Stock Exchange ("NYSE"). The values of such securities used in computing
the net asset value of the Fund's shares are determined as of such times.
Foreign currency exchange rates also are generally determined prior to the close
of business on the NYSE. Occasionally, events affecting the values of such
securities and such exchange rates may occur between the times at which they are
determined and the close of business on the NYSE that may not be reflected in
the computation of
26 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Notes to Financial Statements (continued)
the Fund's net asset value. If events (for example, a company announcement,
market volatility or a natural disaster) occur during such periods that are
expected to materially affect the value of such securities, those securities may
be valued at their fair value as determined in good faith by the Corporation's
Board of Trustees or by the Investment Adviser using a pricing service and/or
procedures approved by the Corporation's Board of Trustees.
(b) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into U.S. dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on investments.
The Fund invests in foreign securities, which may involve a number of risk
factors and special considerations not present with investments in securities of
U.S. corporations.
(c) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
o Forward foreign exchange contracts -- The Fund may enter into forward
foreign exchange contracts as a hedge against either specific transactions
or portfolio positions. The contract is marked-to-market daily and the
change in market value is recorded by the Fund as an unrealized gain or
loss. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value at the time it was opened
and the value at the time it was closed.
o Foreign currency options and futures -- The Fund may purchase or sell
listed or over-the-counter foreign currency options, foreign currency
futures and related options on foreign currency futures as a short or long
hedge against possible variations in foreign exchange rates. Such
transactions may be effected with respect to hedges on non-U.S. dollar
denominated securities owned by the Fund, sold by the Fund but not yet
delivered, or committed or anticipated to be purchased by the Fund.
o Options -- The Fund may purchase and write covered call and put options.
When the Fund writes an option, an amount equal to the premium received by
the Fund is reflected as an asset and an equivalent liability. The amount
of the liability is subsequently marked-to-market to reflect the current
value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added
to (or deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option expires
(or the Fund enters into a closing transaction), the Fund realizes a gain
or loss on the option to the extent of the premiums received or paid (or
gain or loss to the extent the cost of the closing transaction exceeds the
premium paid or received).
Written and purchased options are non-income producing investments.
o Financial futures contracts -- The Fund may purchase or sell financial
futures contracts and options on such futures contracts. Futures contracts
are contracts for delayed delivery of securities at a specific future date
and at a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required by
the exchange on which the transaction is effected. Pursuant to the
contract, the Fund agrees to receive from or pay to the broker an amount
of cash equal to the daily fluctuation in value of the contract. Such
receipts or payments are known as variation margin and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time it was
closed.
(d) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax law, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
(e) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 27
Notes to Financial Statements (continued)
may have passed are subsequently recorded when the Fund has determined the
ex-dividend date. Interest income is recognized on the accrual basis. The Fund
amortizes all premiums and discounts on debt securities.
(f) Offering costs -- Offering costs are amortized over a 12-month period
beginning with the commencement of operations of the Fund.
(g) Dividends and distributions -- Dividends and distributions paid by the Fund
are recorded on the ex-dividend dates.
(h) Securities lending -- The 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 Fund and any
additional required collateral is delivered to the Fund on the next business
day. Where the Fund receives securities as collateral for the loaned securities,
it collects a fee from the borrower. The Fund typically receives the income on
the loaned securities but does not receive the income on the collateral. Where
the Fund receives 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 Fund
may pay reasonable finder's, lending agent, administrative and custodial fees in
connection with its loans. In the event that the borrower defaults on its
obligation to return borrowed securities because of insolvency or for any other
reason, the Fund could experience delays and costs in gaining access to the
collateral. The Fund 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.
(i) Bank overdraft -- The Fund recorded a bank overdraft as a result of the
stated overdrawn balance. This overdrawn balance was due to an unpaid corporate
event.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with FAM. 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. The Fund has also entered into a Distribution Agreement and
Distribution Plans with FAM Distributors, Inc. ("FAMD" or the "Distributor"),
which is a wholly-owned subsidiary of Merrill Lynch Group, Inc.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee of
..85%, on an annual basis, of the average daily value of the Fund's net assets.
FAM has entered into a Sub-Advisory Agreement with Merrill Lynch Asset
Management U.K., Limited ("MLAM U.K."), an affiliate of FAM, pursuant to which
FAM pays MLAM U.K. a fee in an amount to be determined from time to time by FAM
and MLAM U.K., but in no event in excess of the amount that FAM actually
receives.
Pursuant to the Distribution Plan adopted by the Fund in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Fund pays the Distributor
ongoing account maintenance and distribution fees. The fees are accrued daily
and paid monthly at annual rates based upon the average daily net assets of the
shares as follows:
- --------------------------------------------------------------------------------
Account Distribution
Maintenance Fee Fee
- --------------------------------------------------------------------------------
Class A .............................. .25% --
Class B .............................. .25% .75%
Class C .............................. .25% .75%
- --------------------------------------------------------------------------------
Pursuant to a sub-agreement with the Distributor, Merrill Lynch, Pierce, Fenner
& Smith Incorporated ("MLPF&S"), an affiliate of FAM, also provides account
maintenance and distribution services to the Fund. The ongoing account
maintenance fee compensates the Distributor and MLPF&S for providing account
maintenance services to Class A, Class B, and Class C shareholders. The ongoing
distribution fee compensates the Distributor and MLPF&S for providing
shareholder and distribution-related services to Class B and Class C
shareholders.
For the period November 4, 2005 to April 30, 2006, FAMD earned underwriting
discounts and direct commissions and MLPF&S earned dealer concessions on sales
of the Fund's Class A and Class I Shares as follows:
- --------------------------------------------------------------------------------
FAMD MLPF&S
- --------------------------------------------------------------------------------
Class A .............................. $ 116,855 $1,442,806
Class I .............................. $ 422 $ 2,750
- --------------------------------------------------------------------------------
For the period November 4, 2005 to April 30, 2006, MLPF&S received contingent
deferred sales charges of $2,992 relating to transactions in Class C Shares.
28 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Notes to Financial Statements (continued)
The Fund has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to MLPF&S or its
affiliates. Pursuant to that order, the Fund also has 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 Fund, invest cash collateral
received by the Fund for such loans, among other things, in a private investment
company managed by MLIM, LLC or in registered money market funds advised by FAM
or its affiliates.
In addition, MLPF&S received $37,122 in commissions on the execution of
portfolio security transactions for the Fund for the period November 4, 2005 to
April 30, 2006.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
For the period November 4, 2005 to April 30, 2006, the Fund reimbursed MLIM, LLC
$960 for certain accounting services.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, MLAM U.K., FDS, FAMD, ML & Co., and/or MLIM, LLC.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
period November 4, 2005 to April 30, 2006, were $197,008,353 and $16,688,231,
respectively.
Transactions in call options written for the period November 4, 2005 to April
30, 2006 were as follows:
- -------------------------------------------------------------------------------
Number of Premiums
Contracts Received
- -------------------------------------------------------------------------------
Outstanding call options written,
beginning of period .................... -- --
Options written .......................... 4,638 $ 1,277,204
Options closed ........................... (131) (21,726)
-----------------------------
Outstanding call options written,
end of period .......................... 4,507 $ 1,255,478
=============================
4. Beneficial Interest Transactions:
Net increase in net assets derived from beneficial interest transactions was
$199,895,423 for the period November 4, 2005 to April 30, 2006.
Transactions in shares of beneficial interest for each class were as follows:
- -------------------------------------------------------------------------------
Class A Shares for the Period Dollar
Nov. 4, 2005+ to April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 5,504,074 $ 56,990,362
Shares issued to shareholders in
reinvestment of dividends .............. 5,477 57,011
-----------------------------
Total issued ............................. 5,509,551 57,047,373
Shares redeemed .......................... (465,630) (5,023,808)
-----------------------------
Net increase ............................. 5,043,921 $ 52,023,565
=============================
+ Prior to November 4, 2005 (commencement of operations), the Fund issued
2,500 shares to FAM for $25,000.
- -------------------------------------------------------------------------------
Class B Shares for the Period Dollar
Nov. 4, 2005+ to April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 1,569,975 $ 16,360,112
Shares issued to shareholders in
reinvestment of dividends .............. 1,371 14,251
-----------------------------
Total issued ............................. 1,571,346 16,374,363
Shares redeemed .......................... (38,029) (406,707)
-----------------------------
Net increase ............................. 1,533,317 $ 15,967,656
=============================
+ Prior to November 4, 2005 (commencement of operations), the Fund issued
2,500 shares to FAM for $25,000.
- -------------------------------------------------------------------------------
Class C Shares for the Period Dollar
Nov. 4, 2005+ to April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 7,113,318 $ 75,042,229
Shares issued to shareholders in
reinvestment of dividends .............. 5,454 56,719
-----------------------------
Total issued ............................. 7,118,772 75,098,948
Shares redeemed .......................... (286,738) (3,088,800)
-----------------------------
Net increase ............................. 6,832,034 $ 72,010,148
=============================
+ Prior to November 4, 2005 (commencement of operations), the Fund issued
2,500 shares to FAM for $25,000.
- -------------------------------------------------------------------------------
Class I Shares for the Period Dollar
Nov. 4, 2005+ to April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 6,008,793 $ 63,326,391
Shares issued to shareholders in
reinvestment of dividends .............. 4,279 44,541
-----------------------------
Total issued ............................. 6,013,072 63,370,932
Shares redeemed .......................... (319,728) (3,476,878)
-----------------------------
Net increase ............................. 5,693,344 $ 59,894,054
=============================
+ Prior to November 4, 2005 (commencement of operations), the Fund issued
2,500 shares to FAM for $25,000.
The Fund charges a 2% redemption fee on the proceeds (calculated at market
value) of a redemption (either by sale or exchange) of Fund shares made within
30 days of purchase or exchange. The redemption fee is paid to the Fund and is
intended to offset the trading costs, market impact and other costs associated
with short-term trading into and out of the Fund.
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 29
Notes to Financial Statements (concluded)
5. Short-Term Borrowings:
Effective November 23, 2005, the Fund, along with certain other funds managed by
FAM and its affiliates, is a party to a $500,000,000 credit agreement with a
group of lenders. The Fund may borrow under the credit agreement to fund
shareholder redemptions and for other lawful purposes other than for leverage.
The Fund may borrow up to the maximum amount allowable under the Fund's current
prospectus and statement of additional information, subject to various other
legal, regulatory or contractual limits. The Fund pays a commitment fee of .09%
per annum based on the Fund's pro rata share of the unused portion of the credit
agreement. Amounts borrowed under the credit agreement bear interest at a rate
equal to, at each fund's election, the federal funds rate plus .50% or a base
rate as defined in the credit agreement. The Fund did not borrow under the
credit agreement during the period November 23, 2005 to April 30, 2006.
6. Commitments:
At April 30, 2006, the Fund had entered into foreign exchange contracts, under
which it had agreed to purchase various foreign currency with an approximate
value of $180,000.
30 MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006
Officers and Trustees
Robert C. Doll, Jr., President and Trustee
Ronald W. Forbes, Trustee
Cynthia A. Montgomery, Trustee
Jean Margo Reid, Trustee
Roscoe S. Suddarth, Trustee
Richard R. West, Trustee
Edward D. Zinbarg, Trustee
Donald C. Burke, Vice President and Treasurer
Dennis W. Stattman, Vice President and Senior Portfolio Manager
Dan Chamby, Vice President and Associate Portfolio Manager
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
800-637-3863
MERRILL LYNCH GLOBAL EQUITY OPPORTUNITIES FUND APRIL 30, 2006 31
[LOGO] Merrill Lynch Investment Managers
www.mlim.ml.com
- --------------------------------------------------------------------------------
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.ml.com
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. Past performance results shown in this report should not be
considered a representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Statements and other information
herein are as dated and are subject to change.
Investment in foreign securities involves special risks including fluctuating
foreign exchange rates, foreign government regulations, differing degrees of
liquidity and the possibility of substantial volatility due to adverse
political, economic or other developments.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-637-3863; (2) at
www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's Web
site at http://www.sec.gov. Information about how the Fund voted proxies
relating to securities held in the Fund's portfolio during the most recent
12-month period ended June 30 is available (1) at www.mutualfunds.ml.com and (2)
on the Securities and Exchange Commission's Web site at http://www.sec.gov.
Merrill Lynch Global Equity Opportunities Fund
Box 9011
Princeton, NJ 08543-9011
#GEO -- 4/06
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - 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 last fiscal half-year of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
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 Global Equity Opportunities Fund
By: /s/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Merrill Lynch Global Equity Opportunities Fund
Date: June 22, 2006
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 Global Equity Opportunities Fund
Date: June 22, 2006
By: /s/ Donald C. Burke
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Donald C. Burke,
Chief Financial Officer of
Merrill Lynch Global Equity Opportunities Fund
Date: June 22, 2006