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 811-09637
811-09739
Name of Fund: Merrill Lynch Large Cap Series Fund, Inc.
Master Large Cap Series Trust
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 Large Cap Series Fund, Inc. and Master Large Cap
Series Trust, 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing
address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 10/31/06
Date of reporting period: 11/01/05 - 04/30/06
Item 1 - Report to Stockholders
Semi-Annual Reports
April 30, 2006
Merrill Lynch
Large Cap Series Funds, Inc.
A Letter From the President
[PHOTO OMITTED]
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.
2 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
We are pleased to present to you the management team of
Merrill Lynch Large Cap Series Funds, Inc.
[PHOTO OMITTED]
[PHOTO OMITTED]
Senior Portfolio Manager Bob Doll, President and Chief Investment Officer of
Merrill Lynch Investment Managers, joined Merrill Lynch Investment Managers in
1999. He is the head of Merrill Lynch Large Cap Series Funds, Inc. Mr. Doll
received bachelor's degrees from Lehigh University and an MBA from The Wharton
School of the University of Pennsylvania. He is a CFA(R) charterholder and a
Certified Public Accountant. Mr. Doll's investment team includes Senior
Quantitative Analyst Tasos Bouloutas, Director of Equity Operations Brenda Sklar
and Fundamental Analyst Dan Hanson. Mr. Bouloutas earned a master's degree and a
Ph.D. from Columbia University. Ms. Sklar earned a bachelor's degree from the
University of Delaware. She is a Certified Public Accountant. Mr. Hanson
received a bachelor's degree from Middlebury College and an MBA from the
University of Chicago. He is a CFA charterholder and member of the CFA
Institute.
================================================================================
Table of Contents Page
- --------------------------------------------------------------------------------
A Letter From the President .............................................. 2
A Discussion With Your Funds' Portfolio Manager .......................... 4
Announcement to Shareholders ............................................. 6
Performance Data ......................................................... 6
Disclosure of Expenses ................................................... 10
Fund Financial Statements ................................................ 12
Fund Financial Highlights ................................................ 18
Fund Notes to Financial Statements ....................................... 28
Portfolio Information .................................................... 34
Master Schedules of Investments .......................................... 36
Master Financial Statements .............................................. 45
Master Financial Highlights .............................................. 50
Master Notes to Financial Statements ..................................... 52
Officers and Directors/Trustees .......................................... 55
CFA(R) and Chartered Financial Analyst(R) are trademarks owned by the CFA
Institute.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 3
A Discussion With Your Funds' Portfolio Manager
The Funds significantly outperformed their respective benchmarks and
Lipper category averages for the period, benefiting largely from successful
stock selection across various industry sectors.
How did the Merrill Lynch Large Cap Series Funds perform during the period in
light of the existing market conditions?
For the six-month period ended April 30, 2006, Merrill Lynch Large Cap Core
Fund's Class A, Class B, Class C, Class I and Class R Shares had total returns
of +14.06%, +13.57%, +13.58%, +14.15% and +13.93%, respectively, well ahead of
the +9.92% return of the benchmark Russell 1000 Index and the +11.47% average
return of its comparable Lipper category of Multi-Cap Core Funds.*
Merrill Lynch Large Cap Growth Fund's Class A, Class B, Class C, Class I and
Class R Shares had six-month total returns of +13.99%, +13.49%, +13.51%, +14.10%
and +13.89%, respectively, exceeding the +7.06% return of the benchmark Russell
1000 Growth Index and the +11.59% average return of its comparable Lipper
category of Multi-Cap Growth Funds.*
Merrill Lynch Large Cap Value Fund's Class A, Class B, Class C, Class I and
Class R Shares had total returns of +13.61%, +13.13%, +13.13%, +13.71% and
+13.40%, respectively, also surpassing the +12.87% return of its benchmark, the
Russell 1000 Value Index, and the +11.99% average return of the Lipper Multi-Cap
Value Funds category for the six-month period.* (Fund results shown do not
reflect sales charges and would be lower if sales charges were included.
Complete performance information for each Fund can be found on pages 6 - 9 of
this report to shareholders.)
Because the Funds invest in large-capitalization stocks that represent a
significant part of the U.S. stock market, their portfolios were influenced by
the same economic and market events that affected the broader stock market
during the past six months. Major U.S. equity indexes rebounded from losses at
the beginning of the reporting period to achieve impressive gains by April.
Solid economic growth has supported job creation and strong corporate earnings
growth. Merger-and-acquisition activity also has been robust during the past
several months. The Federal Reserve Board (the Fed), now with new chairman Dr.
Ben Bernanke, has continued to remove economic stimulus by advancing the
monetary tightening campaign begun in June 2004. Through period-end, the Fed had
raised the federal funds target rate in 15 consecutive moves of 25 basis points
(.25%) each. A 16th move on May 10, 2006 brought the target short-term interest
rate to 5%. Despite the Fed's persistence, inflation and escalating energy
prices remained a concern among investors, as the price of crude oil reached
record levels above $70 per barrel in April. In the meantime, the U.S. dollar
hit a one-year low versus the euro and the housing market started to show some
signs of weakness. Of final note, small cap stocks outperformed large caps
during the six-month period, as reflected in the +18.91% return of the small cap
Russell 2000 Index.
What factors most influenced the Funds' performance during the period?
In the case of all three Funds, stock selection contributed positively to
returns in most sectors, particularly industrials (commercial services and
machinery), information technology (semiconductors and computer peripherals) and
materials (metals and mining).
At the individual stock level, the largest positive contributors to Merrill
Lynch Large Cap Core Fund's performance during the period were NuCor Corp.,
Western Digital Corp., Nvidia Corp., Circuit City Stores, Inc. and CSX Corp. The
largest detractors were McAfee, Inc., Pioneer Natural Resources Co., Caremark
Rx, Inc., Amgen, Inc. and Mercury Interactive Corp. In the Merrill Lynch Large
Cap Growth Fund portfolio, the largest positive contributors to performance
included Joy Global, Inc., AMR Corp., NuCor, Western Digital and Nvidia. Stocks
that detracted most from that Fund's relative performance included Advanced
Micro Devices, Inc., Mercury Interactive, McAfee, Harman International
Industries, Inc. and Amgen. In terms of Merrill Lynch Large Cap Value Fund, the
largest positive contributors to performance during the six-month period
included CSX, Circuit City Stores, Office Depot, Inc., Marathon Oil Corp. and
LSI Logic Corp. The
* Lipper Multi-Cap funds invest in a variety of market capitalization ranges
without concentrating 75% of their equity assets in any one market
capitalization range over an extended period of time. Multi-Cap Core funds
typically have an average price-to-earnings ratio, price-to-book ratio and
three-year sales-per-share growth value compared to the S&P SuperComposite
1500 Index. Multi-Cap Growth funds typically have an above-average
price-to-earnings ratio, price-to-book ratio and three-year
sales-per-growth value compared to the S&P SuperComposite 1500 Index.
Multi-Cap Value funds typically have a below-average price-to-earnings
ratio, price-to-book ratio and three-year sales-per-growth value compared
to the S&P SuperComposite 1500 Index.
4 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
largest performance detractors were Pioneer Natural Resources, Health Net, Inc.,
Fair Isaac Corp., Caremark Rx and McAfee. Our underweight position in medical
device company Medtronic in the Large Cap Core and Large Cap Growth portfolios,
and our underweight position in Symantec in all three portfolios, also had a
positive impact on performance, as these were negative contributors within each
of the Funds' respective benchmarks.
What changes were made to the Portfolios during the period?
Overall, we continued to identify companies with favorable growth
characteristics and earnings developments, selling at attractive relative
valuations. As a result of our bottom-up stock-selection process, we increased
our positions in industrials and financials while reducing exposure to the
utilities, health care and consumer discretionary sectors.
In Master Large Cap Core Portfolio, the largest purchases during the period
included Cisco Systems, Inc., Valero Energy Corp., Cardinal Health, Inc.,
JPMorgan Chase & Co. and Pioneer Natural Resources. The largest sales included
Amgen, Intel Corp., UnitedHealth Group, Inc., Burlington Resources, Inc. and EOG
Resources, Inc. In Master Large Cap Growth Portfolio, the largest purchases
included Cisco Systems, Inc., CA Inc., Cardinal Health, Inc., Starbucks Corp.
and Advanced Micro Devices, Inc. The largest sales included Intel, Amgen,
UnitedHealth Group, Apple Computer and EOG Resources. In Master Large Cap Value
Portfolio, the largest purchases included JPMorgan Chase, Morgan Stanley, Xerox
Corp., Archer-Daniels-Midland Co. and The Bear Stearns Cos., Inc. The largest
sales included Burlington Resources, Inc., The Allstate Corp., Terex Corp.,
Viacom, Inc. and Forest Oil Corp.
These transactions reflect our ongoing refinement of the Portfolios, as we
continue to look for stocks that we believe best meet our investment criteria
while pruning those that have deteriorated relative to our original assessment.
How would you characterize the Portfolios' positioning at the close of the
period?
The Portfolios' largest overweights as of April 30, 2006, were in the technology
and energy sectors. The largest underweights were in financials, which tend to
underperform in periods of rising interest rates, consumer staples, utilities
and telecommunications services.
We believe the Fed is preparing the markets for the end of its monetary
tightening cycle. It is very possible that the Fed will complete its interest
rate-hiking action in the second quarter, but certainly will go out of its way
to tell investors that a pause does not necessarily mean an end. We have been
and remain optimistic in our longer-term outlook for the economy and the
markets, driven by our view that long-term inflation is likely to stay
reasonably low. However, it is not surprising that investors are somewhat
concerned about inflation given rising commodity prices, low unemployment and
fairly broad-based global economic expansion. We would argue that economic
growth in most of the world, with the notable exception of the United States,
has been driven by supply-side expansion. Overall, core inflation remains low
and we have seen reasonably solid economic readings. The weaker U.S. dollar is
providing support for company earnings, but given the policy backdrop and higher
bond yields, the near-term risks remain. As the economy shifts, equity investors
should expect some bumps along the way. Against this backdrop, diversification
and astute security selection remain key to investment success.
Robert C. Doll, Jr.
President, Director/Trustee and Senior Portfolio Manager
May 15, 2006
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 5
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/Trust's Board of Directors/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/Trust's shareholders, BlackRock
Advisors is expected to become the Fund's/Trust's investment adviser upon the
closing of the transaction between Merrill Lynch and BlackRock.
Performance Data
About Fund Performance
Investors are able to purchase shares of the Funds 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.
o Class R Shares do not incur a maximum sales charge (front-end load) or
deferred sales charge. These shares are subject to a distribution fee of
0.25% per year and an account maintenance fee of 0.25% per year. Class R
Shares are available only to certain retirement plans. Prior to inception,
Class R Share performance results are those of Class I Shares (which have
no distribution or account maintenance fees) restated for Class R Share
fees.
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. 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.
6 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Performance Data (continued)
Recent Performance Results
6-Month 12-Month Since Inception
As of April 30, 2006 Total Return Total Return Total Return
=====================================================================================================
ML Large Cap Core Fund Class A Shares* +14.06% +25.97% + 49.63%
- -----------------------------------------------------------------------------------------------------
ML Large Cap Core Fund Class B Shares* +13.57 +24.93 + 42.36
- -----------------------------------------------------------------------------------------------------
ML Large Cap Core Fund Class C Shares* +13.58 +24.94 + 42.36
- -----------------------------------------------------------------------------------------------------
ML Large Cap Core Fund Class I Shares* +14.15 +26.20 + 51.93
- -----------------------------------------------------------------------------------------------------
ML Large Cap Core Fund Class R Shares* +13.93 +25.62 + 47.92
- -----------------------------------------------------------------------------------------------------
ML Large Cap Growth Fund Class A Shares* +13.99 +24.67 + 5.15
- -----------------------------------------------------------------------------------------------------
ML Large Cap Growth Fund Class B Shares* +13.49 +23.73 + 0.12
- -----------------------------------------------------------------------------------------------------
ML Large Cap Growth Fund Class C Shares* +13.51 +23.61 + 0.03
- -----------------------------------------------------------------------------------------------------
ML Large Cap Growth Fund Class I Shares* +14.10 +24.91 + 6.86
- -----------------------------------------------------------------------------------------------------
ML Large Cap Growth Fund Class R Shares* +13.89 +24.39 + 4.12
- -----------------------------------------------------------------------------------------------------
ML Large Cap Value Fund Class A Shares* +13.61 +27.45 +100.27
- -----------------------------------------------------------------------------------------------------
ML Large Cap Value Fund Class B Shares* +13.13 +26.46 + 90.80
- -----------------------------------------------------------------------------------------------------
ML Large Cap Value Fund Class C Shares* +13.13 +26.39 + 90.70
- -----------------------------------------------------------------------------------------------------
ML Large Cap Value Fund Class I Shares* +13.71 +27.74 +103.49
- -----------------------------------------------------------------------------------------------------
ML Large Cap Value Fund Class R Shares* +13.40 +27.06 + 98.16
- -----------------------------------------------------------------------------------------------------
Russell 1000(R) Index** + 9.92 +16.71 + 5.45
- -----------------------------------------------------------------------------------------------------
Russell 1000(R) Growth Index*** + 7.06 +15.18 - 31.56
- -----------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index**** +12.87 +18.30 + 53.48
- -----------------------------------------------------------------------------------------------------
* 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. Since inception total return
is from 12/22/99.
** This unmanaged broad-based Index measures the performance of the 1,000
largest companies in the Russell 3000(R) Index, which represents
approximately 92% of the total market capitalization of the Russell 3000
Index. Since inception total return is from 12/22/99.
*** This unmanaged broad-based Index is a subset of the Russell 1000 Index
consisting of those Russell 1000 securities with a greater-than-average
growth orientation. Since inception total return is from 12/22/99.
**** This unmanaged broad-based Index is a subset of the Russell 1000 Index
consisting of those Russell 1000 securities with lower price/book ratios
and lower forecasted growth values. Since inception total return is from
12/22/99.
Russell 1000 is a registered trademark of the Frank Russell Company.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 7
Performance Data (continued)
Average Annual Total Return -- Merrill Lynch Large Cap Core Fund
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Class A Shares*
================================================================================
One Year Ended 4/30/06 +25.97% +19.36%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 8.13 + 6.97
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 + 6.55 + 5.64
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Class B Shares++
================================================================================
One Year Ended 4/30/06 +24.93% +20.93%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 7.27 + 6.97
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 + 5.71 + 5.71
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Class C Shares+
================================================================================
One Year Ended 4/30/06 +24.94% +23.94%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 7.27 + 7.27
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 + 5.71 + 5.71
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class I Shares Return
================================================================================
One Year Ended 4/30/06 +26.20%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 8.37
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/06 + 6.80
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class R Shares Return
================================================================================
One Year Ended 4/30/06 +25.62%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 7.94
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/06 + 6.35
- --------------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
+ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
++ Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
+++ Assuming payment of applicable contingent deferred sales charge.
Average Annual Total Return -- Merrill Lynch Large Cap Growth Fund
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Class A Shares*
================================================================================
One Year Ended 4/30/06 +24.67% +18.13%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 4.19 + 3.07
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 + 0.79 - 0.06
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Class B Shares++
================================================================================
One Year Ended 4/30/06 +23.73% +19.73%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 3.37 + 3.02
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 + 0.02 + 0.02
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Class C Shares+
================================================================================
One Year Ended 4/30/06 +23.61% +22.61%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 3.38 + 3.38
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 + 0.00 + 0.00
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class I Shares Return
================================================================================
One Year Ended 4/30/06 +24.91%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 4.45
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/06 + 1.05
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class R Shares Return
================================================================================
One Year Ended 4/30/06 +24.39%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 + 4.05
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/06 + 0.64
- --------------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
+ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
++ Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
+++ Assuming payment of applicable contingent deferred sales charge.
8 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Performance Data (concluded)
Average Annual Total Return -- Merrill Lynch Large Cap Value Fund
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Class A Shares*
================================================================================
One Year Ended 4/30/06 +27.45% +20.76%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 +11.35 +10.15
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 +11.55 +10.60
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Class B Shares++
================================================================================
One Year Ended 4/30/06 +26.46% +22.46%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 +10.50 +10.23
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 +10.70 +10.70
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Class C Shares+
================================================================================
One Year Ended 4/30/06 +26.39% +25.39%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 +10.49 +10.49
- --------------------------------------------------------------------------------
Inception (12/22/99)
through 4/30/06 +10.69 +10.69
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class I Shares Return
================================================================================
One Year Ended 4/30/06 +27.74%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 +11.62
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/06 +11.83
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class R Shares Return
================================================================================
One Year Ended 4/30/06 +27.06%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/06 +11.18
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/06 +11.36
- --------------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
+ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
++ Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
+++ Assuming payment of applicable contingent deferred sales charge.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 9
Disclosure of Expenses
Shareholders of these Funds 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 1, 2005 and
held through April 30, 2006) is intended to assist shareholders both in
calculating expenses based on an investment in each 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 each 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 these Funds and
other funds, compare the 5% hypothetical example with the 5% hypothetical
examples that appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders' ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the second table is useful in
comparing ongoing expenses only, and will not help shareholders determine the
relative total expenses of owning different funds. If these transactional
expenses were included, shareholder expenses would have been higher.
Merrill Lynch Large Cap Core Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value November 1, 2005 to
November 1, 2005 April 30, 2006 April 30, 2006
====================================================================================================================
Actual
====================================================================================================================
Class A $ 1,000 $1,140.60 $ 5.93
- --------------------------------------------------------------------------------------------------------------------
Class B $ 1,000 $1,135.70 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Class C $ 1,000 $1,135.80 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Class I $ 1,000 $1,141.50 $ 4.62
- --------------------------------------------------------------------------------------------------------------------
Class R $ 1,000 $1,139.30 $ 7.24
====================================================================================================================
Hypothetical (5% annual return before expenses)**
====================================================================================================================
Class A $ 1,000 $1,018.96 $ 5.59
- --------------------------------------------------------------------------------------------------------------------
Class B $ 1,000 $1,015.13 $ 9.44
- --------------------------------------------------------------------------------------------------------------------
Class C $ 1,000 $1,015.13 $ 9.44
- --------------------------------------------------------------------------------------------------------------------
Class I $ 1,000 $1,020.18 $ 4.36
- --------------------------------------------------------------------------------------------------------------------
Class R $ 1,000 $1,017.73 $ 6.83
- --------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.13% for Class A, 1.91% for Class B, 1.91% for Class
C, .88% for Class I and 1.38% for Class R), multiplied by the average
account value over the period, multiplied by 179/365 (to reflect the
one-half year period shown). Because the Fund is a feeder fund, the
expense table example reflects the expenses of both the feeder fund and
the master portfolio in which it invests.
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
10 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Disclosure of Expenses (concluded)
Merrill Lynch Large Cap Growth Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value November 1, 2005 to
November 1, 2005 April 30, 2006 April 30, 2006
====================================================================================================================
Actual
====================================================================================================================
Class A $ 1,000 $1,139.90 $ 6.66
- --------------------------------------------------------------------------------------------------------------------
Class B $ 1,000 $1,134.90 $ 10.73
- --------------------------------------------------------------------------------------------------------------------
Class C $ 1,000 $1,135.10 $ 10.68
- --------------------------------------------------------------------------------------------------------------------
Class I $ 1,000 $1,141.00 $ 5.35
- --------------------------------------------------------------------------------------------------------------------
Class R $ 1,000 $1,138.90 $ 7.97
====================================================================================================================
Hypothetical (5% annual return before expenses)**
====================================================================================================================
Class A $ 1,000 $1,018.29 $ 6.29
- --------------------------------------------------------------------------------------------------------------------
Class B $ 1,000 $1,014.47 $ 10.13
- --------------------------------------------------------------------------------------------------------------------
Class C $ 1,000 $1,014.52 $ 10.08
- --------------------------------------------------------------------------------------------------------------------
Class I $ 1,000 $1,019.52 $ 5.05
- --------------------------------------------------------------------------------------------------------------------
Class R $ 1,000 $1,017.07 $ 7.52
- --------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.27% for Class A, 2.05% for Class B, 2.04% for Class
C, 1.02% for Class I and 1.52% for Class R), multiplied by the average
account value over the period, multiplied by 179/365 (to reflect the
one-half year period shown). Because the Fund is a feeder fund, the
expense table example reflects the expenses of both the feeder fund and
the master portfolio in which it invests.
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
Merrill Lynch Large Cap Value Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value November 1, 2005 to
November 1, 2005 April 30, 2006 April 30, 2006
====================================================================================================================
Actual
====================================================================================================================
Class A $ 1,000 $1,136.10 $ 6.23
- --------------------------------------------------------------------------------------------------------------------
Class B $ 1,000 $1,131.30 $ 10.24
- --------------------------------------------------------------------------------------------------------------------
Class C $ 1,000 $1,131.30 $ 10.24
- --------------------------------------------------------------------------------------------------------------------
Class I $ 1,000 $1,137.10 $ 4.93
- --------------------------------------------------------------------------------------------------------------------
Class R $ 1,000 $1,134.00 $ 7.54
====================================================================================================================
Hypothetical (5% annual return before expenses)**
====================================================================================================================
Class A $ 1,000 $1,018.66 $ 5.89
- --------------------------------------------------------------------------------------------------------------------
Class B $ 1,000 $1,014.89 $ 9.68
- --------------------------------------------------------------------------------------------------------------------
Class C $ 1,000 $1,014.89 $ 9.68
- --------------------------------------------------------------------------------------------------------------------
Class I $ 1,000 $1,019.89 $ 4.66
- --------------------------------------------------------------------------------------------------------------------
Class R $ 1,000 $1,017.44 $ 7.12
- --------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.19% for Class A, 1.96% for Class B, 1.96% for Class
C, .94% for Class I and 1.44% for Class R), multiplied by the average
account value over the period, multiplied by 179/365 (to reflect the
one-half year period shown). Because the Fund is a feeder fund, the
expense table example reflects the expenses of both the feeder fund and
the master portfolio in which it invests.
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 11
Statements of Assets and Liabilities
Merrill Lynch Large Cap Series Funds, Inc.
Merrill Lynch Merrill Lynch Merrill Lynch
Large Large Large
Cap Core Cap Growth Cap Value
As of April 30, 2006 Fund Fund Fund
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Master Large Cap Core Portfolio, Master Large Cap Growth
Portfolio and Master Large Cap Value Portfolio (the"Portfolios")* ... $3,287,266,827 $ 686,633,058 $2,377,251,498
Prepaid expenses and other assets .................................... 138,725 87,781 297,716
----------------------------------------------------
Total assets ......................................................... 3,287,405,552 686,720,839 2,377,549,214
----------------------------------------------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Payables:
Distributor ....................................................... 1,340,446 257,176 820,951
Other affiliates .................................................. 970,944 287,287 783,947
Administrator ..................................................... 627,686 131,487 445,942
----------------------------------------------------
Total liabilities .................................................... 2,939,076 675,950 2,050,840
----------------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ........................................................... $3,284,466,476 $ 686,044,889 $2,375,498,374
====================================================
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulated investment loss--net ..................................... $ (5,918,365) $ (2,223,416) $ (1,195,482)
Undistributed (accumulated) realized capital gains (losses) allocated
from the Portfolios--net ............................................ 16,946,680 (34,030,783) 43,717,230
Unrealized appreciation allocated from the Portfolios--net ........... 595,248,463 93,952,182 387,805,091
----------------------------------------------------
Total accumulated earnings--net ...................................... 606,276,778 57,697,983 430,326,839
Class A Shares of Common Stock, $.10 par value, 100,000,000 shares
authorized .......................................................... 6,150,454 1,549,311 3,591,787
Class B Shares of Common Stock, $.10 par value, 200,000,000 shares
authorized .......................................................... 3,589,366 1,077,304 1,594,524
Class C Shares of Common Stock, $.10 par value, 100,000,000 shares
authorized .......................................................... 7,610,907 1,651,223 3,460,114
Class I Shares of Common Stock, $.10 par value, 100,000,000 shares
authorized .......................................................... 5,959,148 1,930,729 4,052,014
Class R Shares of Common Stock, $.10 par value, 200,000,000 shares
authorized .......................................................... 568,817 431,058 466,107
Paid-in capital in excess of par ..................................... 2,654,311,006 621,707,281 1,932,006,989
----------------------------------------------------
Net Assets ........................................................... $3,284,466,476 $ 686,044,889 $2,375,498,374
====================================================
12 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Statements of Assets and Liabilities (concluded)
Merrill Lynch Large Cap Series Funds, Inc.
Merrill Lynch Merrill Lynch Merrill Lynch
Large Large Large
Cap Core Cap Growth Cap Value
As of April 30, 2006 Fund Fund Fund
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Class A:
Net assets ........................................................ $ 861,443,001 $ 162,774,068 $ 656,786,242
====================================================
Shares outstanding ................................................ 61,504,537 15,493,107 35,917,872
====================================================
Net asset value ................................................... $ 14.01 $ 10.51 $ 18.29
====================================================
Class B:
Net assets ........................................................ $ 481,054,129 $ 107,815,531 $ 279,139,841
====================================================
Shares outstanding ................................................ 35,893,661 10,773,035 15,945,239
====================================================
Net asset value ................................................... $ 13.40 $ 10.01 $ 17.51
====================================================
Class C:
Net assets ........................................................ $1,017,557,337 $ 165,095,326 $ 604,174,146
====================================================
Shares outstanding ................................................ 76,109,065 16,512,226 34,601,143
====================================================
Net asset value ................................................... $ 13.37 $ 10.00 $ 17.46
====================================================
Class I:
Net assets ........................................................ $ 846,906,289 $ 206,193,711 $ 752,339,069
====================================================
Shares outstanding ................................................ 59,591,479 19,307,289 40,520,140
====================================================
Net asset value ................................................... $ 14.21 $ 10.68 $ 18.57
====================================================
Class R:
Net assets ........................................................ $ 77,505,720 $ 44,166,253 $ 83,059,076
====================================================
Shares outstanding ................................................ 5,688,170 4,310,575 4,661,074
====================================================
Net asset value ................................................... $ 13.63 $ 10.25 $ 17.82
====================================================
* Identified cost ................................................... $2,692,018,364 $ 592,680,876 $1,989,446,407
====================================================
See Notes to Financial Statements.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 13
Statements of Operations Merrill Lynch Large Cap Series Funds, Inc.
Merrill Lynch Merrill Lynch Merrill Lynch
Large Large Large
Cap Core Cap Growth Cap Value
For the Six Months Ended April 30, 2006 Fund Fund Fund
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income allocated from the Portfolios:
Dividends ......................................................... $ 14,243,891 $ 2,177,170 $ 12,048,489
Interest from affiliates .......................................... 155,956 54,322 215,574
Securities lending--net ........................................... 148,474 27,621 92,392
Expenses .......................................................... (7,074,867) (1,629,216) (5,063,613)
----------------------------------------------------
Total income ......................................................... 7,473,454 629,897 7,292,842
----------------------------------------------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Account maintenance and distribution fees--Class C ................... 4,342,151 726,787 2,479,343
Administration fees .................................................. 3,559,970 724,987 2,365,879
Account maintenance and distribution fees--Class B ................... 2,312,300 509,455 1,348,834
Account maintenance fees--Class A .................................... 921,825 169,809 615,409
Transfer agent fees--Class C ......................................... 618,941 145,553 374,663
Transfer agent fees--Class I ......................................... 433,617 144,291 387,700
Transfer agent fees--Class A ......................................... 446,326 121,506 332,798
Transfer agent fees--Class B ......................................... 331,463 104,013 205,737
Account maintenance and distribution fees--Class R ................... 155,448 87,605 154,143
Registration fees .................................................... 100,054 53,337 112,204
Printing and shareholder reports ..................................... 98,926 18,280 46,717
Transfer agent fees--Class R ......................................... 37,448 31,166 41,660
Professional fees .................................................... 23,765 9,182 16,101
Other ................................................................ 9,585 7,342 7,136
----------------------------------------------------
Total expenses ....................................................... 13,391,819 2,853,313 8,488,324
----------------------------------------------------
Investment loss--net ................................................. (5,918,365) (2,223,416) (1,195,482)
----------------------------------------------------
===================================================================================================================================
Realized & Unrealized Gain Allocated from the Portfolios--Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain on investments--net .................................... 98,578,418 24,131,080 48,571,767
Change in unrealized appreciation on investments--net ................ 263,048,131 46,824,193 183,693,963
----------------------------------------------------
Total realized and unrealized gain--net .............................. 361,626,549 70,955,273 232,265,730
----------------------------------------------------
Net Increase in Net Assets Resulting from Operations ................. $ 355,708,184 $ 68,731,857 $ 231,070,248
====================================================
See Notes to Financial Statements.
14 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Statements of Changes in Net Assets Merrill Lynch Large Cap Core Fund
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment loss--net ........................................................... $ (5,918,365) $ (5,488,189)
Realized gain--net ............................................................. 98,578,418 169,480,673
Change in unrealized appreciation--net ......................................... 263,048,131 148,113,813
--------------------------------------
Net increase in net assets resulting from operations ........................... 355,708,184 312,106,297
--------------------------------------
===================================================================================================================================
Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain--net:
Class A ..................................................................... (39,150,984) (3,420,110)
Class B ..................................................................... (23,738,142) (3,547,724)
Class C ..................................................................... (43,104,852) (3,932,578)
Class I ..................................................................... (37,101,052) (3,522,593)
Class R ..................................................................... (3,102,298) (154,059)
--------------------------------------
Net decrease in net assets resulting from distributions to shareholders ........ (146,197,328) (14,577,064)
--------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions ............. 614,211,158 496,660,002
--------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ................................................... 823,722,014 794,189,235
Beginning of period ............................................................ 2,460,744,462 1,666,555,227
--------------------------------------
End of period* ................................................................. $ 3,284,466,476 $ 2,460,744,462
======================================
* Accumulated investment loss--net ............................................... $ (5,918,365) --
======================================
See Notes to Financial Statements.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 15
Statements of Changes In Net Assets Merrill Lynch Large Cap Growth Fund
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment loss--net ........................................................... $ (2,223,416) $ (3,266,027)
Realized gain--net ............................................................. 24,131,080 27,951,501
Change in unrealized appreciation--net ......................................... 46,824,193 17,275,515
--------------------------------------
Net increase in net assets resulting from operations ........................... 68,731,857 41,960,989
--------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions ............. 128,449,639 102,839,683
--------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ................................................... 197,181,496 144,800,672
Beginning of period ............................................................ 488,863,393 344,062,721
--------------------------------------
End of period* ................................................................. $ 686,044,889 $ 488,863,393
======================================
* Accumulated investment loss--net ............................................... $ (2,223,416) --
======================================
See Notes to Financial Statements.
16 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Statements of Changes in Net Assets Merrill Lynch Large Cap Value Fund
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment loss--net ........................................................... $ (1,195,482) $ (2,354,785)
Realized gain--net ............................................................. 48,571,767 77,262,988
Change in unrealized appreciation--net ......................................... 183,693,963 112,124,763
--------------------------------------
Net increase in net assets resulting from operations ........................... 231,070,248 187,032,966
--------------------------------------
===================================================================================================================================
Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain--net:
Class A ..................................................................... (19,186,811) (8,283,910)
Class B ..................................................................... (10,908,503) (10,290,416)
Class C ..................................................................... (19,192,363) (10,721,593)
Class I ..................................................................... (23,059,853) (8,685,584)
Class R ..................................................................... (2,388,871) (707,934)
--------------------------------------
Net decrease in net assets resulting from distributions to shareholders ........ (74,736,401) (38,689,437)
--------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions ............. 684,599,845 576,505,050
--------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ................................................... 840,933,692 724,848,579
Beginning of period ............................................................ 1,534,564,682 809,716,103
--------------------------------------
End of period* ................................................................. $ 2,375,498,374 $ 1,534,564,682
======================================
* Accumulated investment loss--net ............................................... $ (1,195,482) --
======================================
See Notes to Financial Statements.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 17
Financial Highlights Class A
Merrill Lynch Large Cap Core Fund
------------------------------------------------------------------------
For the Six
Months Ended For the Year Ended October 31,
The following per share data and ratios have been derived April 30, ------------------------------------------------------
from information provided in the financial statements. 2006 2005 2004 2003 2002
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 13.01 $ 11.15 $ 10.23 $ 8.25 $ 9.06
-----------------------------------------------------------------------
Investment income (loss)--net*** .................... (.01) .01 (.01) (.02) .01
Realized and unrealized gain (loss)--net ............ 1.79 1.94 .93 2.00 (.82)
-----------------------------------------------------------------------
Total from investment operations .................... 1.78 1.95 .92 1.98 (.81)
-----------------------------------------------------------------------
Less distributions from realized gain--net .......... (.78) (.09) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ...................... $ 14.01 $ 13.01 $ 11.15 $ 10.23 $ 8.25
=======================================================================
====================================================================================================================================
Total Investment Return++
- ------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................. 14.06%+ 17.61% 8.99% 24.00% (8.94%)
=======================================================================
====================================================================================================================================
Ratios to Average Net Assets**
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ...................... 1.13%* 1.16% 1.18% 1.23% 1.28%
=======================================================================
Expenses ............................................ 1.13%* 1.16% 1.18% 1.23% 1.28%
=======================================================================
Investment income (loss)--net ....................... (.11%)* .05% (.09%) (.21%) .10%
=======================================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............ $ 861,443 $ 629,682 $ 392,896 $ 293,144 $ 136,552
=======================================================================
Portfolio turnover of the Portfolios ................ 38.13% 93.95% 135.48% 138.73% 150.18%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income--net.
*** Based on average shares outstanding.
+ Aggregate total investment return.
++ Total investment returns exclude the effects of sales charges.
See Notes to Financial Statements.
18 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Merrill Lynch Large Cap Growth Fund Merrill Lynch Large Cap Value Fund
- -------------------------------------------------------------- ------------------------------------------------------------
For the Six For the Six
Months Ended For the Year Ended October 31, Month Ended For the Year Ended October 31,
April 30, ------------------------------------------------ April 30, -----------------------------------------------
2006 2005 2004 2003 2002 2006 2005 2004 2003 2002
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 9.22 $ 8.26 $ 7.89 $ 6.39 $ 7.47 $ 16.86 $ 14.53 $ 12.77 $ 10.14 $ 10.62
- ------------------------------------------------------------------------------------------------------------------------------------
(.02) (.04) (.06) (.05) (.06) .01 .02 .03 .03 .04
1.31 1.00 .43 1.55 (1.02) 2.23 2.97 1.73 2.60 (.52)
- ------------------------------------------------------------------------------------------------------------------------------------
1.29 .96 .37 1.50 (1.08) 2.24 2.99 1.76 2.63 (.48)
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- (.81) (.66) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10.51 $ 9.22 $ 8.26 $ 7.89 $ 6.39 $ 18.29 $ 16.86 $ 14.53 $ 12.77 $ 10.14
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
13.99%+ 11.62% 4.69% 23.47% (14.46%) 13.61%+ 21.20% 13.78% 25.94% (4.52%)
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
1.27%* 1.33% 1.38% 1.46% 1.54% 1.19%* 1.23% 1.26% 1.28% 1.28%
====================================================================================================================================
1.27%* 1.33% 1.38% 1.46% 1.56% 1.19%* 1.23% 1.26% 1.28% 1.28%
====================================================================================================================================
(.49%)* (.46%) (.69%) (.81%) (.88%) .10%* .10% .21% .24% .49%
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 162,774 $ 112,887 $ 64,539 $ 27,410 $ 15,874 $ 656,786 $ 371,216 $ 161,867 $ 90,358 $ 46,020
====================================================================================================================================
51.87% 131.79% 164.94% 178.11% 177.46% 27.97% 94.95% 127.59% 157.04% 136.92%
====================================================================================================================================
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 19
Financial Highlights (continued) Class B
Merrill Lynch Large Cap Core Fund
------------------------------------------------------------------------
For the Six
Months Ended For the Year Ended October 31,
The following per share data and ratios have been derived April 30, ------------------------------------------------------
from information provided in the financial statements. 2006 2005 2004 2003 2002
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 12.43 $ 10.74 $ 9.93 $ 8.07 $ 8.93
-----------------------------------------------------------------------
Investment loss--net*** ............................. (.06) (.08) (.09) (.08) (.06)
Realized and unrealized gain (loss)--net ............ 1.70 1.86 .90 1.94 (.80)
-----------------------------------------------------------------------
Total from investment operations .................... 1.64 1.78 .81 1.86 (.86)
-----------------------------------------------------------------------
Less distributions from realized gain--net .......... (.67) (.09) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ...................... $ 13.40 $ 12.43 $ 10.74 $ 9.93 $ 8.07
=======================================================================
====================================================================================================================================
Total Investment Return++
- ------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................. 13.57%+ 16.69% 8.16% 23.05% (9.63%)
=======================================================================
====================================================================================================================================
Ratios to Average Net Assets**
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ...................... 1.91%* 1.93% 1.95% 2.00% 2.07%
=======================================================================
Expenses ............................................ 1.91%* 1.93% 1.95% 2.00% 2.07%
=======================================================================
Investment loss--net ................................ (.87%)* (.66%) (.86%) (.96%) (.64%)
=======================================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............ $ 481,054 $ 446,242 $ 412,162 $ 389,598 $ 329,121
=======================================================================
Portfolio turnover of the Portfolios ................ 38.13% 93.95% 135.48% 138.73% 150.18%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income--net.
*** Based on average shares outstanding.
+ Aggregate total investment return.
++ Total investment returns exclude the effects of sales charges.
See Notes to Financial Statements.
20 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Merrill Lynch Large Cap Growth Fund Merrill Lynch Large Cap Value Fund
- --------------------------------------------------------------- ----------------------------------------------------------------
For the Six For the Six
Months Ended For the Year Ended October 31, Month Ended For the Year Ended October 31,
April 30, ------------------------------------------------- April 30, --------------------------------------------------
2006 2005 2004 2003 2002 2006 2005 2004 2003 2002
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 8.82 $ 7.96 $ 7.66 $ 6.25 $ 7.37 $ 16.12 $ 14.02 $ 12.41 $ 9.93 $ 10.48
- ------------------------------------------------------------------------------------------------------------------------------------
(.06) (.10) (.12) (.10) (.12) (.05) (.09) (.07) (.05) (.03)
1.25 .96 .42 1.51 (1.00) 2.12 2.85 1.68 2.53 (.52)
- ------------------------------------------------------------------------------------------------------------------------------------
1.19 .86 .30 1.41 (1.12) 2.07 2.76 1.61 2.48 (.55)
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- (.68) (.66) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10.01 $ 8.82 $ 7.96 $ 7.66 $ 6.25 $ 17.51 $ 16.12 $ 14.02 $ 12.41 $ 9.93
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
13.49%+ 10.80% 3.92% 22.56% (15.20%) 13.13%+ 20.29% 12.97% 24.97% (5.25%)
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
2.05%* 2.11% 2.16% 2.27% 2.32% 1.96%* 2.00% 2.02% 2.05% 2.05%
====================================================================================================================================
2.05%* 2.11% 2.16% 2.27% 2.34% 1.96%* 2.00% 2.02% 2.05% 2.05%
====================================================================================================================================
(1.26%)* (1.15%) (1.48%) (1.61%) (1.66%) (.62%)* (.60%) (.53%) (.50%) (.28%)
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 107,816 $ 95,593 $ 93,382 $ 100,683 $ 83,726 $ 279,140 $ 261,345 $ 222,055 $ 202,190 $ 174,623
====================================================================================================================================
51.87% 131.79% 164.94% 178.11% 177.46% 27.97% 94.95% 127.59% 157.04% 136.92%
====================================================================================================================================
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 21
Financial Highlights (continued) Class C
Merrill Lynch Large Cap Core Fund
------------------------------------------------------------------------
For the Six
Months Ended For the Year Ended October 31,
The following per share data and ratios have been derived April 30, ------------------------------------------------------
from information provided in the financial statements. 2006 2005 2004 2003 2002
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period................. $ 12.43 $ 10.73 $ 9.93 $ 8.07 $ 8.93
-----------------------------------------------------------------------
Investment loss--net*** ............................. (.06) (.09) (.09) (.08) (.06)
Realized and unrealized gain (loss)--net ............ 1.70 1.88 .89 1.94 (.80)
-----------------------------------------------------------------------
Total from investment operations .................... 1.64 1.79 .80 1.86 (.86)
-----------------------------------------------------------------------
Less distributions from realized gain--net .......... (.70) (.09) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ...................... $ 13.37 $ 12.43 $ 10.73 $ 9.93 $ 8.07
=======================================================================
====================================================================================================================================
Total Investment Return++
- ------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................. 13.58%+ 16.80% 8.06% 23.05% (9.63%)
=======================================================================
====================================================================================================================================
Ratios to Average Net Assets**
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ...................... 1.91%* 1.94% 1.96% 2.01% 2.07%
=======================================================================
Expenses ............................................ 1.91%* 1.94% 1.96% 2.01% 2.07%
=======================================================================
Investment loss--net ................................ (.89%)* (.73%) (.86%) (.97%) (.66%)
=======================================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............ $1,017,557 $ 737,063 $ 430,689 $ 250,491 $ 178,459
=======================================================================
Portfolio turnover of the Portfolios ................ 38.13% 93.95% 135.48% 138.73% 150.18%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income--net.
*** Based on average shares outstanding.
+ Aggregate total investment return.
++ Total investment returns exclude the effects of sales charges.
See Notes to Financial Statements.
22 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Merrill Lynch Large Cap Growth Fund Merrill Lynch Large Cap Value Fund
- -------------------------------------------------------------- ----------------------------------------------------------------
For the Six For the Six
Months Ended For the Year Ended October 31, Month Ended For the Year Ended October 31,
April 30, ------------------------------------------------ April 30, --------------------------------------------------
2006 2005 2004 2003 2002 2006 2005 2004 2003 2002
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 8.81 $ 7.95 $ 7.65 $ 6.25 $ 7.36 $ 16.11 $ 14.01 $ 12.41 $ 9.93 $ 10.48
- ------------------------------------------------------------------------------------------------------------------------------------
(.06) (.10) (.12) (.10) (.12) (.05) (.10) (.07) (.05) (.03)
1.25 .96 .42 1.50 (.99) 2.12 2.86 1.67 2.53 (.52)
- ------------------------------------------------------------------------------------------------------------------------------------
1.19 .86 .30 1.40 (1.11) 2.07 2.76 1.60 2.48 (.55)
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- (.72) (.66) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10.00 $ 8.81 $ 7.95 $ 7.65 $ 6.25 $ 17.46 $ 16.11 $ 14.01 $ 12.41 $ 9.93
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
13.51%+ 10.82% 3.92% 22.40% (15.08%) 13.13%+ 20.31% 12.89% 24.97% (5.25%)
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
2.04%* 2.11% 2.16% 2.27% 2.33% 1.96%* 2.00% 2.03% 2.06% 2.05%
====================================================================================================================================
2.04%* 2.11% 2.16% 2.27% 2.35% 1.96%* 2.00% 2.03% 2.06% 2.05%
====================================================================================================================================
(1.26%)* (1.19%) (1.48%) (1.62%) (1.67%) (.65%)* (.65%) (.54%) (.51%) (.28%)
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 165,095 $ 125,150 $ 94,969 $ 68,337 $ 52,872 $ 604,174 $ 409,937 $ 219,806 $ 129,456 $ 95,895
====================================================================================================================================
51.87% 131.79% 164.94% 178.11% 177.46% 27.97% 94.95% 127.59% 157.04% 136.92%
====================================================================================================================================
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 23
Financial Highlights (continued) Class I
Merrill Lynch Large Cap Core Fund
------------------------------------------------------------------------
For the Six
Months Ended For the Year Ended October 31,
The following per share data and ratios have been derived April 30, ------------------------------------------------------
from information provided in the financial statements. 2006 2005 2004 2003 2002
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 13.20 $ 11.28 $ 10.33 $ 8.31 $ 9.10
-----------------------------------------------------------------------
Investment income (loss)--net*** .................... .01 .04 .02 .01 .03
Realized and unrealized gain (loss)--net ............ 1.80 1.97 .93 2.01 (.82)
-----------------------------------------------------------------------
Total from investment operations .................... 1.81 2.01 .95 2.02 (.79)
-----------------------------------------------------------------------
Less distributions from realized gain--net .......... (.80) (.09) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ...................... $ 14.21 $ 13.20 $ 11.28 $ 10.33 $ 8.31
=======================================================================
====================================================================================================================================
Total Investment Return++
- ------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................. 14.15%+ 17.94% 9.20% 24.31% (8.68%)
=======================================================================
====================================================================================================================================
Ratios to Average Net Assets**
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ...................... .88%* .91% .93% .98% 1.04%
=======================================================================
Expenses ............................................ .88%* .91% .93% .98% 1.04%
=======================================================================
Investment income (loss)--net ....................... .14%* .31% .17% .06% .33%
=======================================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............ $ 846,906 $ 601,378 $ 415,647 $ 307,277 $ 214,953
=======================================================================
Portfolio turnover of the Portfolios ................ 38.13% 93.95% 135.48% 138.73% 150.18%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income--net.
*** Based on average shares outstanding.
+ Aggregate total investment return.
++ Total investment returns exclude the effects of sales charges. Effective
December 28, 2005, Class I Shares are no longer subject to any front-end
sales charge.
See Notes to Financial Statements.
24 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Merrill Lynch Large Cap Growth Fund Merrill Lynch Large Cap Value Fund
- -------------------------------------------------------------- ------------------------------------------------------------
For the Six For the Six
Months Ended For the Year Ended October 31, Month Ended For the Year Ended October 31,
April 30, ------------------------------------------------ April 30, -----------------------------------------------
2006 2005 2004 2003 2002 2006 2005 2004 2003 2002
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 9.36 $ 8.36 $ 7.97 $ 6.44 $ 7.50 $ 17.12 $ 14.71 $ 12.89 $ 10.21 $ 10.67
- ------------------------------------------------------------------------------------------------------------------------------------
(.01) (.02) (.04) (.04) (.05) .03 .06 .07 .06 .05
1.33 1.02 .43 1.57 (1.01) 2.26 3.01 1.75 2.62 (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
1.32 1.00 .39 1.53 (1.06) 2.29 3.07 1.82 2.68 (.46)
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- (.84) (.66) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10.68 $ 9.36 $ 8.36 $ 7.97 $ 6.44 $ 18.57 $ 17.12 $ 14.71 $ 12.89 $ 10.21
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
14.10%+ 11.96% 4.89% 23.76% (14.13%) 13.71%+ 21.49% 14.12% 26.25% (4.31%)
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
1.02%* 1.08% 1.13% 1.22% 1.29% .94%* .98% 1.01% 1.03% 1.03%
====================================================================================================================================
1.02%* 1.08% 1.13% 1.22% 1.31% .94%* .98% 1.01% 1.03% 1.03%
====================================================================================================================================
(.24%)* (.20%) (.45%) (.57%) (.63%) .36%* .35% .49% .51% .76%
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 206,194 $ 128,667 $ 79,869 $ 53,163 $ 31,989 $ 752,339 $ 446,172 $ 194,625 $ 92,736 $ 66,754
====================================================================================================================================
51.87% 131.79% 164.94% 178.11% 177.46% 27.97% 94.95% 127.59% 157.04% 136.92%
====================================================================================================================================
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 25
Financial Highlights (concluded) Class R
Merrill Lynch Large Cap Core Fund
-----------------------------------------------------------------
For the For the Period
Six Months For the Year Ended January 3,
Ended October 31, 2003@ to
The following per share data and ratios have been derived April 30, --------------------------- October 31,
from information provided in the financial statements. 2006 2005 2004 2003
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................... $ 12.68 $ 10.89 $ 10.02 $ 8.12
-----------------------------------------------------------------
Investment income (loss)--net*** .......................... (.02) (.03) (.03) (.05)
Realized and unrealized gain--net ......................... 1.73 1.91 .90 1.95
-----------------------------------------------------------------
Total from investment operations .......................... 1.71 1.88 .87 1.90
-----------------------------------------------------------------
Less distributions from realized gain--net ................ (.76) (.09) -- --
-----------------------------------------------------------------
Net asset value, end of period ............................ $ 13.63 $ 12.68 $ 10.89 $ 10.02
=================================================================
====================================================================================================================================
Total Investment Return
- ------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ........................ 13.93%+ 17.39% 8.68% 23.40%+
=================================================================
====================================================================================================================================
Ratios to Average Net Assets**
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............................ 1.38%* 1.42% 1.43% 1.48%*
=================================================================
Expenses .................................................. 1.38%* 1.42% 1.43% 1.48%*
=================================================================
Investment income (loss)--net ............................. (.37%)* (.28%) (.32%) (.44%)*
=================================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .................. $ 77,506 $ 46,379 $ 15,160 $ 119
=================================================================
Portfolio turnover of the Portfolios ...................... 38.13% 93.95% 135.48% 138.73%
=================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income--net.
*** Based on average shares outstanding.
+ Aggregate total investment return.
@ Commencement of operations.
@@ Amount is less than ($.01) per share.
See Notes to Financial Statements.
26 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Merrill Lynch Large Cap Growth Fund Merrill Lynch Large Cap Value Fund
- ---------------------------------------------------------- ----------------------------------------------------------
For the For the Period For the For the Period
Six Months For the Year Ended January 3, Six Months For the Year Ended January 3,
Ended October 31, 2003@ to Ended October 31, 2003@ to
April 30, ------------------------ October 31, April 30, ------------------------ October 31,
2006 2005 2004 2003 2006 2005 2004 2003
==============================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------
$ 9.00 $ 8.08 $ 7.74 $ 6.16 $ 16.46 $ 14.23 $ 12.54 $ 10.12
- ------------------------------------------------------------------------------------------------------------------------------
(.04) (.07) (.06) (.05) (.01) (.03) --@@ .01
1.29 .99 .40 1.63 2.16 2.92 1.69 2.41
- ------------------------------------------------------------------------------------------------------------------------------
1.25 .92 .34 1.58 2.15 2.89 1.69 2.42
- ------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- (.79) (.66) -- --
- ------------------------------------------------------------------------------------------------------------------------------
$ 10.25 $ 9.00 $ 8.08 $ 7.74 $ 17.82 $ 16.46 $ 14.23 $ 12.54
==============================================================================================================================
==============================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------
13.89%+ 11.39% 4.39% 25.65%+ 13.40%+ 20.93% 13.48% 23.91%+
==============================================================================================================================
==============================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------
1.52%* 1.58% 1.61% 1.72%* 1.44%* 1.48% 1.53% 1.53%*
==============================================================================================================================
1.52%* 1.58% 1.61% 1.72%* 1.44%* 1.48% 1.53% 1.53%*
==============================================================================================================================
(.74%)* (.75%) (.95%) (.94%)* (.15%)* (.19%) (.03%) .01%*
==============================================================================================================================
==============================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------
$ 44,166 $ 26,566 $ 11,304 $ 290 $ 83,059 $ 45,894 $ 11,362 $ 12
==============================================================================================================================
51.87% 131.79% 164.94% 178.11% 27.97% 94.95% 127.59% 157.04%
==============================================================================================================================
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 27
Notes to Financial Statements Merrill Lynch Large Cap Series Funds, Inc.
1. Significant Accounting Policies:
Merrill Lynch Large Cap Core Fund, Merrill Lynch Large Cap Growth Fund and
Merrill Lynch Large Cap Value Fund (the "Funds" or individually as the "Fund")
constituting Merrill Lynch Large Cap Series Funds, Inc. are registered under the
Investment Company Act of 1940, as amended, as diversified, open-end investment
companies. The Funds seek to achieve their investment objective by investing all
of their assets in the Master Large Cap Core Portfolio, Master Large Cap Growth
Portfolio and Master Large Cap Value Portfolio (the "Portfolios" or individually
as the "Portfolio"), respectively, constituting Master Large Cap Series Trust,
which have the same investment objective and strategies as the corresponding
Funds. The value of the Funds' investment in the Portfolios reflect the Funds'
proportionate interest in the net assets of the Portfolios. The performance of
the Funds is directly affected by the performance of the Portfolios. The
financial statements of the Portfolios, including the Schedules of Investments,
are included elsewhere in this report and should be read in conjunction with the
Funds' financial statements. The Funds' 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. On April 30, 2006, the percentage of Master Large Cap Core
Portfolio, Master Large Cap Growth Portfolio and Master Large Cap Value
Portfolio owned by Merrill Lynch Large Cap Core Fund, Merrill Lynch Large Cap
Growth Fund and Merrill Lynch Large Cap Value Fund, was 94.1%, 100% and 99.9%,
respectively. The Funds offer 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. Class R Shares are sold only to certain
retirement plans. All classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except that
Class A, Class B, Class C and Class R Shares bear certain expenses related to
the account maintenance of such shares, and Class B, Class C and Class R 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 certain changes to Class A distribution plan). Income,
expenses (other than expenses attributable to a specific class) and realized and
unrealized gains and losses are allocated daily to each class based on its
relative net assets. The following is a summary of significant accounting
policies followed by the Funds.
(a) Valuation of investments -- Each Fund records its investment in the
Portfolio at fair value. Valuation of securities held by the Portfolio is
discussed in Note 1(a) of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
(b) Investment income and expenses -- Each Fund records daily its proportionate
share of the Portfolio's income, expenses and realized and unrealized gains and
losses. In addition, each Fund accrues its own expenses.
(c) Income taxes -- It is each 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 shareholders. Therefore,
no federal income tax provision is required. Under the applicable foreign tax
law, withholding taxes may be imposed on interest, dividends and capital gains
at various rates.
(d) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(e) Dividends and distributions -- Dividends and distributions paid by each Fund
are recorded on the ex-dividend dates.
(f) Investment transactions -- Investment transactions in each Portfolio are
accounted for on a trade date basis.
2. Transactions with Affiliates:
Each Fund has entered into an Administration Agreement with Fund Asset
Management, L.P. ("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. Each Fund pays a monthly fee at an annual
rate of .25% of the Fund's average daily net assets for the performance of
administrative services (other than investment advice and related portfolio
activities) necessary for the operation of the Fund.
Each 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.
28 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Notes to Financial Statements (continued)
Merrill Lynch Large Cap Series Funds, Inc.
Pursuant to the Distribution Plans adopted by the Funds in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Funds pay 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%
Class R ................................ .25% .25%
- --------------------------------------------------------------------------------
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 Funds. The ongoing account
maintenance fee compensates the Distributor and MLPF&S for providing account
maintenance services to Class A, Class B, Class C and Class R shareholders. The
ongoing distribution fee compensates the Distributor and MLPF&S for providing
shareholder and distribution-related services to Class B, Class C and Class R
shareholders.
For the six months ended April 30, 2006, FAMD earned underwriting discounts and
MLPF&S earned dealer concessions on sales of the Funds' Class A and Class I
Shares as follows:
- --------------------------------------------------------------------------------
FAMD MLPF&S
- --------------------------------------------------------------------------------
Merrill Lynch Large Cap Core Fund
Class A .................................... $ 81,940 $1,060,555
Class I .................................... $ 3,549 $ 56,677
- --------------------------------------------------------------------------------
Merrill Lynch Large Cap Growth Fund
Class A .................................... $ 11,081 $ 147,870
Class I .................................... $ 2 $ 20
- --------------------------------------------------------------------------------
Merrill Lynch Large Cap Value Fund
Class A .................................... $ 36,387 $ 490,552
Class I .................................... $ 77 $ 1,338
- --------------------------------------------------------------------------------
For the six months ended April 30, 2006, MLPF&S received contingent deferred
sales charges relating to transactions in Class B and Class C Shares as follows:
- --------------------------------------------------------------------------------
Class B Class C
- --------------------------------------------------------------------------------
Merrill Lynch Large Cap Core Fund .............. $170,698 $ 66,223
Merrill Lynch Large Cap Growth Fund ............ $ 26,445 $ 4,666
Merrill Lynch Large Cap Value Fund ............. $ 97,313 $ 23,375
- --------------------------------------------------------------------------------
Furthermore, MLPF&S received contingent deferred sales charges relating to
transactions subject to front-end sales charge waivers in Class A Shares as
follows:
- --------------------------------------------------------------------------------
Class A
- --------------------------------------------------------------------------------
Merrill Lynch Large Cap Core Fund ........................... $47,121
Merrill Lynch Large Cap Growth Fund ......................... --
Merrill Lynch Large Cap Value Fund .......................... $ 543
- --------------------------------------------------------------------------------
Financial Data Services, Inc. ("FDS"), an indirect, wholly-owned subsidiary of
ML & Co., is the Funds' transfer agent.
Certain officers and/or directors of the Funds are officers and/or directors of
FAM, FAMD, PSI, FDS, and/or ML & Co.
In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to
contribute ML & Co.'s investment management business, including FAM, to the
investment management business of BlackRock, Inc. The transaction is expected to
close in the third quarter of 2006.
3. Capital Share Transactions:
Merrill Lynch Large Cap Core Fund
Net increase in net assets derived from capital share transactions was
$614,211,158 and $496,660,002 for the six months ended April 30, 2006 and the
year ended October 31, 2005, respectively.
Transactions in capital shares for each class were as follows:
- -------------------------------------------------------------------------------
Merrill Lynch Large Cap Core Fund
- -------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 15,983,799 $ 217,997,180
Automatic conversion of shares ......... 1,223,887 16,553,794
Shares issued resulting from
reinvestment of distributions ........ 2,779,136 36,378,888
---------------------------------
Total issued ........................... 19,986,822 270,929,862
Shares redeemed ........................ (6,864,464) (93,514,770)
---------------------------------
Net increase ........................... 13,122,358 $ 177,415,092
=================================
- -------------------------------------------------------------------------------
Class A Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 21,630,751 $ 269,694,087
Automatic conversion of shares ......... 1,329,966 16,528,220
Shares issued resulting from
reinvestment of distributions ........ 276,770 3,252,048
---------------------------------
Total issued ........................... 23,237,487 289,474,355
Shares redeemed ........................ (10,104,529) (126,772,449)
---------------------------------
Net increase ........................... 13,132,958 $ 162,701,906
=================================
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 29
Notes to Financial Statements (continued)
Merrill Lynch Large Cap Series Funds, Inc.
- -------------------------------------------------------------------------------
Merrill Lynch Large Cap Core Fund (continued)
- -------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 3,596,193 $ 46,922,201
Shares issued resulting from
reinvestment of distributions ........ 1,653,076 20,762,639
---------------------------------
Total issued ........................... 5,249,269 67,684,840
---------------------------------
Automatic conversion of shares ......... (1,279,008) (16,553,794)
Shares redeemed ........................ (3,966,565) (51,748,762)
---------------------------------
Total redeemed ......................... (5,245,573) (68,302,556)
---------------------------------
Net increase (decrease) ................ 3,696 $ (617,716)
=================================
- -------------------------------------------------------------------------------
Class B Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 7,261,231 $ 86,386,499
Shares issued resulting from
reinvestment of distributions ........ 272,886 3,083,617
---------------------------------
Total issued ........................... 7,534,117 89,470,116
---------------------------------
Automatic conversion of shares ......... (1,386,617) (16,528,220)
Shares redeemed ........................ (8,651,655) (102,765,876)
---------------------------------
Total redeemed ......................... (10,038,272) (119,294,096)
---------------------------------
Net decrease ........................... (2,504,155) $ (29,823,980)
=================================
- -------------------------------------------------------------------------------
Class C Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 19,000,378 $ 247,610,407
Shares issued resulting from
reinvestment of distributions ........ 3,153,077 39,508,063
---------------------------------
Total issued ........................... 22,153,455 287,118,470
Shares redeemed ........................ (5,333,158) (69,556,552)
---------------------------------
Net increase ........................... 16,820,297 $ 217,561,918
=================================
- -------------------------------------------------------------------------------
Class C Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 26,855,950 $ 320,056,553
Shares issued resulting from
reinvestment of distributions ........ 316,872 3,580,652
---------------------------------
Total issued ........................... 27,172,822 323,637,205
Shares redeemed ........................ (8,010,043) (95,860,544)
---------------------------------
Net increase ........................... 19,162,779 $ 227,776,661
=================================
- -------------------------------------------------------------------------------
Merrill Lynch Large Cap Core Fund (concluded)
- -------------------------------------------------------------------------------
Class I Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 17,558,585 $ 242,813,544
Shares issued resulting from
reinvestment of distributions ........ 2,153,754 28,580,315
---------------------------------
Total issued ........................... 19,712,339 271,393,859
Shares redeemed ........................ (5,666,091) (78,461,806)
---------------------------------
Net increase ........................... 14,046,248 $ 192,932,053
=================================
- -------------------------------------------------------------------------------
Class I Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 16,652,465 $ 209,256,024
Shares issued resulting from
reinvestment of distributions ........ 241,544 2,871,965
---------------------------------
Total issued ........................... 16,894,009 212,127,989
Shares redeemed ........................ (8,200,059) (103,663,058)
---------------------------------
Net increase ........................... 8,693,950 $ 108,464,931
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,981,414 $ 39,508,089
Shares issued resulting from
reinvestment of distributions ........ 243,317 3,102,298
---------------------------------
Total issued ........................... 3,224,731 42,610,387
Shares redeemed ........................ (1,193,040) (15,690,576)
---------------------------------
Net increase ........................... 2,031,691 $ 26,919,811
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 3,599,772 $ 43,887,267
Shares issued resulting from
reinvestment of distributions ........ 13,432 154,059
---------------------------------
Total issued ........................... 3,613,204 44,041,326
Shares redeemed ........................ (1,348,354) (16,500,842)
---------------------------------
Net increase ........................... 2,264,850 $ 27,540,484
=================================
30 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Notes to Financial Statements (continued)
Merrill Lynch Large Cap Series Funds, Inc.
Merrill Lynch Large Cap Growth Fund
Net increase in net assets derived from capital share transactions was
$128,449,639 and $102,839,683 for the six months ended April 30, 2006 and the
year ended October 31, 2005, respectively.
Transactions in capital shares for each class were as follows:
- -------------------------------------------------------------------------------
Merrill Lynch Large Cap Growth Fund
- -------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 4,182,424 $ 43,262,938
Automatic conversion of shares ......... 609,291 6,210,788
---------------------------------
Total issued ........................... 4,791,715 49,473,726
Shares redeemed ........................ (1,542,552) (15,801,169)
---------------------------------
Net increase ........................... 3,249,163 $ 33,672,557
=================================
- -------------------------------------------------------------------------------
Class A Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 6,552,650 $ 58,552,118
Automatic conversion of shares ......... 479,396 4,340,086
---------------------------------
Total issued ........................... 7,032,046 62,892,204
Shares redeemed ........................ (2,602,492) (23,247,423)
---------------------------------
Net increase ........................... 4,429,554 $ 39,644,781
=================================
- -------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 1,927,869 $ 18,994,007
---------------------------------
Automatic conversion of shares ......... (638,265) (6,210,788)
Shares redeemed ........................ (1,359,774) (13,235,815)
---------------------------------
Total redeemed ......................... (1,998,039) (19,446,603)
---------------------------------
Net decrease ........................... (70,170) $ (452,596)
=================================
- -------------------------------------------------------------------------------
Class B Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 3,379,386 $ 29,012,975
---------------------------------
Automatic conversion of shares ......... (499,699) (4,340,086)
Shares redeemed ........................ (3,768,945) (32,206,346)
---------------------------------
Total redeemed ......................... (4,268,644) (36,546,432)
---------------------------------
Net decrease ........................... (889,258) $ (7,533,457)
=================================
- -------------------------------------------------------------------------------
Merrill Lynch Large Cap Growth Fund (concluded)
- -------------------------------------------------------------------------------
Class C Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 3,957,361 $ 38,835,738
Shares redeemed ........................ (1,654,948) (16,202,516)
---------------------------------
Net increase ........................... 2,302,413 $ 22,633,222
=================================
- -------------------------------------------------------------------------------
Class C Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 5,368,655 $ 45,981,773
Shares redeemed ........................ (3,102,840) (26,622,404)
---------------------------------
Net increase ........................... 2,265,815 $ 19,359,369
=================================
- -------------------------------------------------------------------------------
Class I Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 7,761,977 $ 81,895,221
Shares redeemed ........................ (2,200,743) (23,023,596)
---------------------------------
Net increase ........................... 5,561,234 $ 58,871,625
=================================
- -------------------------------------------------------------------------------
Class I Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 7,718,763 $ 69,629,558
Shares redeemed ........................ (3,522,654) (31,902,918)
---------------------------------
Net increase ........................... 4,196,109 $ 37,726,640
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 1,903,574 $ 19,201,454
Shares redeemed ........................ (543,925) (5,476,623)
---------------------------------
Net increase ........................... 1,359,649 $ 13,724,831
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,649,241 $ 23,240,567
Shares redeemed ........................ (1,096,413) (9,598,217)
---------------------------------
Net increase ........................... 1,552,828 $ 13,642,350
=================================
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 31
Notes to Financial Statements (continued)
Merrill Lynch Large Cap Series Funds, Inc.
Merrill Lynch Large Cap Value Fund
Net increase in net assets derived from capital share transactions was
$684,599,845 and $576,505,050 for the six months ended April 30, 2006 and the
year ended October 31, 2005, respectively.
Transactions in capital shares for each class were as follows:
- -------------------------------------------------------------------------------
Merrill Lynch Large Cap Value Fund
- -------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 14,783,115 $ 261,121,998
Automatic conversion of shares ......... 845,270 14,826,008
Shares issued resulting from
reinvestment of distributions ........ 975,834 16,637,969
---------------------------------
Total issued ........................... 16,604,219 292,585,975
Shares redeemed ........................ (2,698,771) (47,681,003)
---------------------------------
Net increase ........................... 13,905,448 $ 244,904,972
=================================
- -------------------------------------------------------------------------------
Class A Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 14,908,526 $ 240,034,025
Automatic conversion of shares ......... 939,374 14,950,013
Shares issued resulting from
reinvestment of distributions ........ 493,981 7,315,852
---------------------------------
Total issued ........................... 16,341,881 262,299,890
Shares redeemed ........................ (5,469,730) (88,547,806)
---------------------------------
Net increase ........................... 10,872,151 $ 173,752,084
=================================
- -------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,192,061 $ 36,997,157
Shares issued resulting from
reinvestment of distributions ........ 604,494 9,895,568
---------------------------------
Total issued ........................... 2,796,555 46,892,725
---------------------------------
Automatic conversion of shares ......... (882,692) (14,826,008)
Shares redeemed ........................ (2,185,601) (36,987,315)
---------------------------------
Total redeemed ......................... (3,068,293) (51,813,323)
---------------------------------
Net decrease ........................... (271,738) $ (4,920,598)
=================================
- -------------------------------------------------------------------------------
Merrill Lynch Large Cap Value Fund (continued)
- -------------------------------------------------------------------------------
Class B Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 4,746,786 $ 72,547,018
Shares issued resulting from
reinvestment of distributions ........ 645,906 9,204,154
---------------------------------
Total issued ........................... 5,392,692 81,751,172
---------------------------------
Automatic conversion of shares ......... (978,449) (14,950,013)
Shares redeemed ........................ (4,040,521) (61,542,283)
---------------------------------
Total redeemed ......................... (5,018,970) (76,492,296)
---------------------------------
Net increase ........................... 373,722 $ 5,258,876
=================================
- -------------------------------------------------------------------------------
Class C Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 10,634,262 $ 179,487,100
Shares issued resulting from
reinvestment of distributions ........ 1,099,483 17,954,551
---------------------------------
Total issued ........................... 11,733,745 197,441,651
Shares redeemed ........................ (2,577,471) (43,586,491)
---------------------------------
Net increase ........................... 9,156,274 $ 153,855,160
=================================
- -------------------------------------------------------------------------------
Class C Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 12,540,291 $ 192,758,758
Shares issued resulting from
reinvestment of distributions ........ 699,915 9,966,785
---------------------------------
Total issued ........................... 13,240,206 202,725,543
Shares redeemed ........................ (3,482,254) (53,395,043)
---------------------------------
Net increase ........................... 9,757,952 $ 149,330,500
=================================
- -------------------------------------------------------------------------------
Class I Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 17,325,274 $ 310,725,593
Shares issued resulting from
reinvestment of distributions ........ 1,250,335 21,630,795
---------------------------------
Total issued ........................... 18,575,609 332,356,388
Shares redeemed ........................ (4,118,087) (73,824,104)
---------------------------------
Net increase ........................... 14,457,522 $ 258,532,284
=================================
32 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Notes to Financial Statements (concluded)
Merrill Lynch Large Cap Series Funds, Inc.
- -------------------------------------------------------------------------------
Merrill Lynch Large Cap Value Fund (concluded)
- -------------------------------------------------------------------------------
Class I Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 17,058,691 $ 286,306,800
Shares issued resulting from
reinvestment of distributions ........ 549,731 8,245,964
---------------------------------
Total issued ........................... 17,608,422 294,552,764
Shares redeemed ........................ (4,781,111) (77,304,760)
---------------------------------
Net increase ........................... 12,827,311 $ 217,248,004
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Six Months Dollar
Ended April 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,335,620 $ 40,291,365
Shares issued resulting from
reinvestment of distributions ........ 143,647 2,388,851
---------------------------------
Total issued ........................... 2,479,267 42,680,216
Shares redeemed ........................ (607,019) (10,452,189)
---------------------------------
Net increase ........................... 1,872,248 $ 32,228,027
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,583,162 $ 40,275,219
Shares issued resulting from
reinvestment of distributions ........ 48,890 707,934
---------------------------------
Total issued ........................... 2,632,052 40,983,153
Shares redeemed ........................ (641,770) (10,067,567)
---------------------------------
Net increase ........................... 1,990,282 $ 30,915,586
=================================
4. Capital Loss Carrryforward:
Merrill Lynch Large Cap Core Fund
On October 31, 2005, the Fund had a net capital loss carryforward of
$73,378,161, of which $43,235,070 expires in 2008, $14,033,211 expires in 2009,
$13,653,465 expires in 2010 and $2,456,415 expires in 2011. This amount will be
available to offset like amounts of any future taxable gains.
Merrill Lynch Large Cap Growth Fund
On October 31, 2005, the Fund had a net capital loss carryforward of
$55,312,594, of which $5,224,996 expires in 2007, $2,705,691 expires in 2008,
$6,931,833 expires in 2009 and $40,450,074 expires in 2010. This amount will be
available to offset like amounts of any future taxable gains.
Merrill Lynch Large Cap Value Fund
On October 31, 2005, the Fund had a net capital loss carryforward of $191,235,
all of which expires in 2010. This amount, subject to limitation, will be
available to offset like amounts of any future taxable gains.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 33
Portfolio Information as of April 30, 2006 Master Large Cap Series Trust
Sector Representation
Percent of
Master Large Cap Core Portfolio Total Investments
- --------------------------------------------------------------------------------
Information Technology .................................... 22.8%
Energy .................................................... 15.2
Financials ................................................ 13.1
Health Care ............................................... 12.3
Industrials ............................................... 10.6
Consumer Discretionary .................................... 8.1
Consumer Staples .......................................... 2.3
Materials ................................................. 2.2
Utilities ................................................. 1.0
Other* .................................................... 12.4
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Total Investments
- --------------------------------------------------------------------------------
Information Technology .................................... 33.0%
Industrials ............................................... 16.9
Health Care ............................................... 12.4
Consumer Discretionary .................................... 10.5
Financials ................................................ 7.0
Energy .................................................... 3.8
Materials ................................................. 2.8
Consumer Staples .......................................... 1.6
Producer Durables ......................................... 0.9
Other* .................................................... 11.1
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Total Investments
- --------------------------------------------------------------------------------
Financials ................................................ 23.7%
Energy .................................................... 19.1
Information Technology .................................... 12.9
Health Care ............................................... 9.4
Consumer Discretionary .................................... 9.0
Industrials ............................................... 6.9
Materials ................................................. 2.0
Consumer Staples .......................................... 1.8
Producer Durables ......................................... 1.1
Telecommunications Services ............................... 1.0
Other* .................................................... 13.1
- --------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments.
For Portfolio compliance purposes, sector and industry classifications
refer to any one or more of the sector and industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Portfolio management. This definition may
not apply for purposes of this report, which may combine sector and
industry sub-classifications for reporting ease.
Five Largest Industries
Percent of
Master Large Cap Core Portfolio Net Assets
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels ............................... 17.3%
Health Care Providers & Services .......................... 8.8
Semiconductors & Semiconductor Equipment .................. 8.3
Capital Markets ........................................... 6.7
Software .................................................. 6.4
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Net Assets
- --------------------------------------------------------------------------------
Software .................................................. 11.8%
Semiconductors & Semiconductor Equipment .................. 11.6
Health Care Providers & Services .......................... 7.7
Communications Equipment .................................. 4.8
Aerospace & Defense ....................................... 4.5
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Net Assets
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels ............................... 21.9%
Insurance ................................................. 10.5
Capital Markets ........................................... 7.8
Health Care Providers & Services .......................... 7.7
Diversified Financial Services ............................ 5.4
- --------------------------------------------------------------------------------
34 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Portfolio Information as of April 30, 2006 (concluded)
Master Large Cap Series Trust
Ten Largest Equity Holdings
Percent of
Master Large Cap Core Portfolio Net Assets
- --------------------------------------------------------------------------------
Exxon Mobil Corp. ......................................... 3.3%
Cisco Systems, Inc. ....................................... 1.9
General Electric Co. ...................................... 1.8
Hewlett-Packard Co. ....................................... 1.7
ConocoPhillips ............................................ 1.6
Goldman Sachs Group, Inc. ................................. 1.5
Pfizer, Inc. .............................................. 1.5
Texas Instruments, Inc. ................................... 1.4
Occidental Petroleum Corp. ................................ 1.4
Lehman Brothers Holdings, Inc. ............................ 1.3
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Net Assets
- --------------------------------------------------------------------------------
Cisco Systems, Inc. ....................................... 3.1%
General Electric Co. ...................................... 2.3
Texas Instruments, Inc. ................................... 1.9
Microsoft Corp. ........................................... 1.7
Motorola, Inc. ............................................ 1.6
Lockheed Martin Corp. ..................................... 1.5
Starbucks Corp. ........................................... 1.5
Aetna, Inc. ............................................... 1.3
The Charles Schwab Corp. .................................. 1.3
Cardinal Health, Inc. ..................................... 1.3
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Net Assets
- --------------------------------------------------------------------------------
Exxon Mobil Corp. ......................................... 5.9%
JPMorgan Chase & Co. ...................................... 3.2
Hewlett-Packard Co. ....................................... 2.4
ConocoPhillips ............................................ 2.0
Morgan Stanley ............................................ 1.9
Citigroup, Inc. ........................................... 1.9
Goldman Sachs Group, Inc. ................................. 1.8
Occidental Petroleum Corp. ................................ 1.7
Lehman Brothers Holdings, Inc. ............................ 1.7
Valero Energy Corp. ....................................... 1.6
- --------------------------------------------------------------------------------
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 35
Schedule of Investments Master Large Cap Core Portfolio
Shares
Sector Industry Common Stocks Held Value
=========================================================================================
Consumer Discretionary--9.3%
Auto Components--0.6%
The Goodyear Tire & Rubber Co. (c)(d) 1,610,000 $ 22,540,000
--------------------------------------------------------------------------------
Automobiles--0.4%
Harley-Davidson, Inc. 240,000 12,201,600
--------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--1.9%
Darden Restaurants, Inc. 950,000 37,620,000
Starbucks Corp. (c) 780,000 29,070,600
--------------
66,690,600
--------------------------------------------------------------------------------
Household Durables--0.9%
Harman International Industries, Inc. (d) 340,000 29,916,600
--------------------------------------------------------------------------------
Multiline Retail--2.1%
JC Penney Co., Inc. 590,000 38,621,400
Nordstrom, Inc. 940,000 36,030,200
--------------
74,651,600
--------------------------------------------------------------------------------
Specialty Retail--3.3%
AutoNation, Inc. (c) 420,000 9,458,400
Circuit City Stores, Inc. 1,280,000 36,800,000
Office Depot, Inc. (c) 930,000 37,739,400
Staples, Inc. 1,150,000 30,371,500
--------------
114,369,300
--------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.1%
Polo Ralph Lauren Corp. 60,000 3,643,200
--------------------------------------------------------------------------------
Total Consumer Discretionary 324,012,900
=========================================================================================
Consumer Staples--2.6%
Food & Staples Retailing--0.8%
The Kroger Co. 1,380,000 27,958,800
--------------------------------------------------------------------------------
Food Products--1.2%
Archer-Daniels-Midland Co. 1,150,000 41,791,000
--------------------------------------------------------------------------------
Household Products--0.5%
Procter & Gamble Co. 280,000 16,298,800
--------------------------------------------------------------------------------
Tobacco--0.1%
Altria Group, Inc. 60,000 4,389,600
--------------------------------------------------------------------------------
Total Consumer Staples 90,438,200
=========================================================================================
Energy--17.3%
Oil, Gas & Consumable Fuels--17.3%
Amerada Hess Corp. (d) 260,000 37,250,200
Anadarko Petroleum Corp. 410,000 42,976,200
Apache Corp. 460,000 32,678,400
Chevron Corp. 80,000 4,881,600
ConocoPhillips 820,000 54,858,000
Devon Energy Corp. 690,000 41,475,900
Exxon Mobil Corp. 1,820,000 114,805,600
Kerr-McGee Corp. (d) 310,000 30,956,600
Marathon Oil Corp. 540,000 42,854,400
Occidental Petroleum Corp. 460,000 47,260,400
Pioneer Natural Resources Co. (d) 810,000 34,684,200
Sunoco, Inc. 480,000 38,899,200
Tesoro Corp. 520,000 36,358,400
Valero Energy Corp. 710,000 45,965,400
--------------------------------------------------------------------------------
Total Energy 605,904,500
=========================================================================================
Financials--15.0%
Capital Markets--6.7%
The Bear Stearns Cos., Inc. 280,000 39,902,800
The Charles Schwab Corp. 1,660,000 29,714,000
Goldman Sachs Group, Inc. 330,000 52,895,700
Janus Capital Group, Inc. 1,000,000 19,460,000
Lehman Brothers Holdings, Inc. (d) 310,000 46,856,500
Morgan Stanley 680,000 43,724,000
--------------
232,553,000
--------------------------------------------------------------------------------
Commercial Banks--0.7%
Bank of America Corp. 520,000 25,958,400
--------------------------------------------------------------------------------
Diversified Financial Services--2.3%
Citigroup, Inc. 670,000 33,466,500
JPMorgan Chase & Co. 1,000,000 45,380,000
--------------
78,846,500
--------------------------------------------------------------------------------
Insurance--5.3%
AON Corp. (d) 940,000 39,395,400
American International Group, Inc. 110,000 7,177,500
MetLife, Inc. (d) 400,000 20,840,000
Prudential Financial, Inc. (d) 570,000 44,534,100
The St. Paul Travelers Cos., Inc. 810,000 35,664,300
UnumProvident Corp. (d) 1,240,000 25,184,400
W.R. Berkley Corp. 337,500 12,629,250
--------------
185,424,950
--------------------------------------------------------------------------------
Total Financials 522,782,850
=========================================================================================
Health Care--14.0%
Biotechnology--0.9%
Applera Corp.--Applied Biosystems Group 600,000 17,304,000
Techne Corp. (c) 260,000 14,731,600
--------------
32,035,600
--------------------------------------------------------------------------------
Health Care Equipment & Supplies--1.8%
Becton Dickinson & Co. 430,000 27,107,200
Dade Behring Holdings, Inc. 570,000 22,230,000
Varian Medical Systems, Inc. (c) 250,000 13,095,000
--------------
62,432,200
--------------------------------------------------------------------------------
Health Care Providers & Services--8.8%
Aetna, Inc. 1,100,000 42,350,000
AmerisourceBergen Corp. 810,000 34,951,500
Cardinal Health, Inc. 600,000 40,410,000
Caremark Rx, Inc. 750,000 34,162,500
Cigna Corp. 210,000 22,470,000
Express Scripts, Inc. (c)(d) 490,000 38,288,600
Humana, Inc. (c) 560,000 25,300,800
McKesson Corp. 720,000 34,984,800
WellPoint, Inc. (c) 500,000 35,500,000
--------------
308,418,200
--------------------------------------------------------------------------------
Pharmaceuticals--2.5%
Johnson & Johnson 240,000 14,066,400
King Pharmaceuticals, Inc. (c) 1,200,000 20,868,000
Pfizer, Inc. 2,030,000 51,419,900
--------------
86,354,300
--------------------------------------------------------------------------------
Total Health Care 489,240,300
=========================================================================================
36 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Schedule of Investments (continued) Master Large Cap Core Portfolio
Shares
Sector Industry Common Stocks Held Value
=========================================================================================
Industrials--12.0%
Aerospace & Defense--2.8%
Lockheed Martin Corp. 570,000 $ 43,263,000
Northrop Grumman Corp. 20,000 1,338,000
Precision Castparts Corp. 350,000 22,043,000
Raytheon Co. 730,000 32,317,100
--------------
98,961,100
--------------------------------------------------------------------------------
Airlines--1.1%
AMR Corp. (c)(d) 1,480,000 36,467,200
--------------------------------------------------------------------------------
Commercial Services & Supplies--1.8%
Corporate Executive Board Co. 200,000 21,426,000
Waste Management, Inc. 1,130,000 42,329,800
--------------
63,755,800
--------------------------------------------------------------------------------
Electrical Equipment--0.9%
Rockwell Automation, Inc. (d) 410,000 29,708,600
--------------------------------------------------------------------------------
Industrial Conglomerates--1.8%
General Electric Co. 1,820,000 62,953,800
--------------------------------------------------------------------------------
Machinery--1.7%
Cummins, Inc. (d) 350,000 36,575,000
Joy Global, Inc. 260,000 17,079,400
Toro Co. 150,000 7,417,500
--------------
61,071,900
--------------------------------------------------------------------------------
Road & Rail--1.5%
CSX Corp. 600,000 41,094,000
Norfolk Southern Corp. 220,000 11,880,000
--------------
52,974,000
--------------------------------------------------------------------------------
Trading Companies & Distributors--0.4%
MSC Industrial Direct Co. Class A 290,000 15,039,400
--------------------------------------------------------------------------------
Total Industrials 420,931,800
=========================================================================================
Information Technology--26.0%
Communications Equipment--3.9%
Cisco Systems, Inc. (c) 3,160,000 66,202,000
Motorola, Inc. 2,060,000 43,981,000
Tellabs, Inc. (c) 1,640,000 25,994,000
--------------
136,177,000
--------------------------------------------------------------------------------
Computers & Peripherals--4.3%
Dell, Inc. (c) 1,270,000 33,274,000
Hewlett-Packard Co. 1,860,000 60,394,200
NCR Corp. (c) 650,000 25,610,000
Western Digital Corp. (c) 1,480,000 31,139,200
--------------
150,417,400
--------------------------------------------------------------------------------
IT Services--2.1%
CheckFree Corp. (c)(d) 530,000 28,551,100
Computer Sciences Corp. (c) 660,000 38,643,000
Sabre Holdings Corp. Class A 240,000 5,541,600
--------------
72,735,700
--------------------------------------------------------------------------------
Office Electronics--1.0%
Xerox Corp. (c) 2,450,000 34,398,000
--------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment--8.3%
Advanced Micro Devices, Inc. (c)(d) 980,000 31,703,000
Broadcom Corp. Class A (c) 390,000 16,032,900
Intersil Corp. Class A 1,130,000 33,459,300
LSI Logic Corp. (c) 3,100,000 33,015,000
Lam Research Corp. (c) 700,000 34,216,000
Microchip Technology, Inc. 580,000 21,610,800
National Semiconductor Corp. 1,060,000 31,778,800
Nvidia Corp. (c) 1,350,000 39,447,000
Texas Instruments, Inc. 1,450,000 50,329,500
--------------
291,592,300
--------------------------------------------------------------------------------
Software--6.4%
BEA Systems, Inc. (c)(d) 2,650,000 35,112,500
BMC Software, Inc. (c) 1,100,000 23,694,000
CA, Inc. (d) 620,000 15,723,200
Citrix Systems, Inc. (c) 890,000 35,528,800
Compuware Corp. (c) 1,110,000 8,524,800
Intuit, Inc. (c)(d) 700,000 37,919,000
Microsoft Corp. 1,190,000 28,738,500
Red Hat, Inc. (c)(d) 1,260,000 37,031,400
--------------
222,272,200
--------------------------------------------------------------------------------
Total Information Technology 907,592,600
=========================================================================================
Materials--2.5%
Chemicals--0.0%
Tronox, Inc. Class B 3 59
--------------------------------------------------------------------------------
Metals & Mining--2.5%
Allegheny Technologies, Inc. (d) 120,000 8,320,800
Freeport-McMoRan Copper & Gold,
Inc. Class B (d) 580,000 37,456,400
Nucor Corp. (d) 370,000 40,263,400
--------------
86,040,600
--------------------------------------------------------------------------------
Total Materials 86,040,659
=========================================================================================
Telecommunications Services--1.1%
Diversified Telecommunications Services--1.1%
Qwest Communications International Inc. (c) 5,710,000 38,314,100
--------------------------------------------------------------------------------
Total Telecommunications Services 38,314,100
=========================================================================================
Total Common Stocks
(Cost--$2,842,363,751)--99.8% 3,485,257,909
=========================================================================================
Short-Term Beneficial
Securities Interest
=========================================================================================
Merrill Lynch Liquidity Series, LLC
Cash Sweep Series I, 4.75% (a)(e) $ 6,646,588 6,646,588
Merrill Lynch Liquidity Series, LLC
Money Market Series, 4.89% (a)(b)(e) 489,417,300 489,417,300
--------------------------------------------------------------------------------
Total Short-Term Securities
(Cost--$496,063,888)--14.2% 496,063,888
=========================================================================================
Total Investments (Cost--$3,338,427,639*)--114.0% 3,981,321,797
Liabilities in Excess of Other Assets--(14.0%) (489,156,982)
--------------
Net Assets--100.0% $3,492,164,815
==============
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 37
Schedule of Investments (concluded) Master Large Cap Core Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2006, as computed for federal income tax purposes, were as
follows:
Aggregate cost ............................. $ 3,351,791,829
===============
Gross unrealized appreciation .............. $ 697,407,754
Gross unrealized depreciation .............. (67,877,786)
---------------
Net unrealized appreciation ................ $ 629,529,968
===============
(a) Investments in companies considered to be an affiliate of the Portfolio,
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 $ 2,525,247 $166,970
Merrill Lynch Liquidity Series, LLC
Money Market Series $352,625,100 $158,874
--------------------------------------------------------------------------
(b) Security was purchased with the cash proceeds from securities loans.
(c) Non-income producing security.
(d) Security, or a portion of security, is on loan.
(e) Represents the current yield as of 4/30/2006.
o For Portfolio compliance purposes, the Portfolio's sector and industry
classifications refer to any one or more of the sector and industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Portfolio management. This
definition may not apply for purposes of this report, which may combine
sector and industry sub-classifications for reporting ease. Sectors and
industries are shown as a percent of net assets.
See Notes to Financial Statements.
38 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Schedule of Investments Master Large Cap Growth Portfolio
Shares
Sector Industry Common Stocks Held Value
=========================================================================================
Consumer Discretionary--11.8%
Auto Components--1.0%
The Goodyear Tire & Rubber Co. (a)(e) 487,000 $ 6,818,000
--------------------------------------------------------------------------------
Automobiles--1.1%
Harley-Davidson, Inc. (e) 145,000 7,371,800
--------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--2.6%
Darden Restaurants, Inc. (e) 195,000 7,722,000
Starbucks Corp. (a) 268,000 9,988,360
--------------
17,710,360
--------------------------------------------------------------------------------
Household Durables--0.9%
Harman International Industries, Inc. 71,000 6,247,290
--------------------------------------------------------------------------------
Media--0.9%
Walt Disney Co. 228,000 6,374,880
--------------------------------------------------------------------------------
Multiline Retail--2.2%
JC Penney Co., Inc. 113,000 7,396,980
Nordstrom, Inc. 207,000 7,934,310
--------------
15,331,290
--------------------------------------------------------------------------------
Specialty Retail--2.2%
Circuit City Stores, Inc. 263,000 7,561,250
Claire's Stores, Inc. 208,000 7,325,760
--------------
14,887,010
--------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.9%
Polo Ralph Lauren Corp. 105,000 6,375,600
--------------------------------------------------------------------------------
Total Consumer Discretionary 81,116,230
=========================================================================================
Consumer Staples--1.8%
Beverages--0.9%
Pepsi Bottling Group, Inc. 196,000 6,291,600
--------------------------------------------------------------------------------
Household Products--0.9%
Procter & Gamble Co. 100,000 5,821,000
--------------------------------------------------------------------------------
Total Consumer Staples 12,112,600
=========================================================================================
Energy--4.3%
Oil, Gas & Consumable Fuels--4.3%
Anadarko Petroleum Corp. 47,000 4,926,540
ConocoPhillips 44,726 2,992,169
Pioneer Natural Resources Co. 148,000 6,337,360
Sunoco, Inc. 99,000 8,022,960
Tesoro Corp. 105,000 7,341,600
--------------------------------------------------------------------------------
Total Energy 29,620,629
=========================================================================================
Financials--7.8%
Capital Markets--3.6%
The Charles Schwab Corp. 502,000 8,985,800
Goldman Sachs Group, Inc. 50,000 8,014,500
Morgan Stanley 119,000 7,651,700
--------------
24,652,000
--------------------------------------------------------------------------------
Diversified Financial Services--1.1%
Moody's Corp. 125,000 7,751,250
--------------------------------------------------------------------------------
Insurance--3.1%
The Hanover Insurance Group, Inc. 129,000 6,824,100
Prudential Financial, Inc. 95,000 7,422,350
W.R. Berkley Corp. 189,000 7,072,380
--------------
21,318,830
--------------------------------------------------------------------------------
Total Financials 53,722,080
=========================================================================================
Health Care--13.9%
Biotechnology--1.6%
Gilead Sciences, Inc. (a) 83,000 4,772,500
Techne Corp. (a) 111,000 6,289,260
--------------
11,061,760
--------------------------------------------------------------------------------
Health Care Equipment & Supplies--2.6%
Becton Dickinson & Co. 98,000 6,177,920
Dade Behring Holdings, Inc. 105,000 4,095,000
Varian Medical Systems, Inc. (a)(e) 146,000 7,647,480
--------------
17,920,400
--------------------------------------------------------------------------------
Health Care Providers & Services--7.7%
Aetna, Inc. 235,000 9,047,500
AmerisourceBergen Corp. 128,000 5,523,200
Cardinal Health, Inc. 133,000 8,957,550
Caremark Rx, Inc. (e) 159,000 7,242,450
Express Scripts, Inc. (a) 103,000 8,048,420
Humana, Inc. (a) 118,000 5,331,240
McKesson Corp. 156,000 7,580,040
WellPoint, Inc. (a) 19,000 1,349,000
--------------
53,079,400
--------------------------------------------------------------------------------
Pharmaceuticals--2.0%
Johnson & Johnson 79,000 4,630,190
Merck & Co., Inc. 143,000 4,922,060
Pfizer, Inc. 156,000 3,951,480
--------------
13,503,730
--------------------------------------------------------------------------------
Total Health Care 95,565,290
=========================================================================================
Industrials--19.0%
Aerospace & Defense--4.5%
Boeing Co. (e) 75,000 6,258,750
Lockheed Martin Corp. 133,000 10,094,700
Precision Castparts Corp. 112,000 7,053,760
Raytheon Co. 167,000 7,393,090
--------------
30,800,300
--------------------------------------------------------------------------------
Airlines--1.1%
AMR Corp. (a) 301,000 7,416,640
--------------------------------------------------------------------------------
Commercial Services & Supplies--3.8%
Corporate Executive Board Co. 72,000 7,713,360
Dun & Bradstreet Corp. (a) 61,000 4,698,220
Steelcase, Inc. Class A 314,000 5,878,080
Waste Management, Inc. 209,000 7,829,140
--------------
26,118,800
--------------------------------------------------------------------------------
Electrical Equipment--2.4%
Rockwell Automation, Inc. (e) 103,000 7,463,380
Roper Industries, Inc. 48,000 2,278,080
Thomas & Betts Corp. (a) 124,000 7,061,800
--------------
16,803,260
--------------------------------------------------------------------------------
Industrial Conglomerates--2.2%
General Electric Co. (e) 447,000 15,461,730
--------------------------------------------------------------------------------
Machinery--3.9%
Caterpillar, Inc. 67,000 5,074,580
Cummins, Inc. (e) 68,000 7,106,000
Joy Global, Inc. 110,000 7,225,900
Toro Co. 143,000 7,071,350
--------------
26,477,830
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 39
Schedule of Investments (continued) Master Large Cap Growth Portfolio
Shares
Sector Industry Common Stocks Held Value
=========================================================================================
Industrials (concluded)
Trading Companies & Distributors--1.1%
MSC Industrial Direct Co. Class A 140,000 $ 7,260,400
--------------------------------------------------------------------------------
Total Industrials 130,338,960
=========================================================================================
Information Technology--37.0%
Communications Equipment--4.8%
Cisco Systems, Inc. (a) 1,032,000 21,620,400
Motorola, Inc. 525,000 11,208,750
--------------
32,829,150
--------------------------------------------------------------------------------
Computers & Peripherals--3.3%
Dell, Inc. (a) 336,000 8,803,200
NCR Corp. (a) 140,000 5,516,000
Western Digital Corp. (a) 390,000 8,205,600
--------------
22,524,800
--------------------------------------------------------------------------------
Electronic Equipment & Instruments--1.9%
AVX Corp. 251,000 4,467,800
Agilent Technologies, Inc. (a) 225,000 8,644,500
--------------
13,112,300
--------------------------------------------------------------------------------
IT Services--3.6%
Ceridian Corp. (a) 284,000 6,881,320
CheckFree Corp. (a) 137,000 7,380,190
Electronic Data Systems Corp. 273,000 7,392,840
Paychex, Inc. 79,000 3,190,810
--------------
24,845,160
--------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment--11.6%
Advanced Micro Devices, Inc. (a)(e) 250,000 8,087,500
Analog Devices, Inc. 145,000 5,498,400
Broadcom Corp. Class A (a) 150,000 6,166,500
Intersil Corp. Class A 252,000 7,461,720
LSI Logic Corp. (a) 671,000 7,146,150
Lam Research Corp. (a) 165,000 8,065,200
Microchip Technology, Inc. 206,000 7,675,560
National Semiconductor Corp. 281,000 8,424,380
Nvidia Corp. (a)(e) 284,000 8,298,480
Texas Instruments, Inc. (e) 377,000 13,085,670
--------------
79,909,560
--------------------------------------------------------------------------------
Software--11.8%
BEA Systems, Inc. (a) 527,000 6,982,750
BMC Software, Inc. (a) 332,000 7,151,280
CA, Inc. (e) 309,000 7,836,240
Cadence Design Systems, Inc. (a)(e) 394,000 7,458,420
Citrix Systems, Inc. (a) 191,000 7,624,720
Compuware Corp. (a) 586,000 4,500,480
Fair Isaac Corp. (e) 175,000 6,494,250
Intuit, Inc. (a) 145,000 7,854,650
Microsoft Corp. 474,000 11,447,100
Red Hat, Inc. (a)(e) 260,000 7,641,400
Synopsys, Inc. (a) 282,000 6,156,060
--------------
81,147,350
--------------------------------------------------------------------------------
Total Information Technology 254,368,320
=========================================================================================
Materials--3.1%
Metals & Mining--3.1%
Allegheny Technologies, Inc. 104,000 7,211,360
Freeport-McMoRan Copper & Gold, Inc.
Class B (e) 119,000 7,685,020
Nucor Corp. 59,000 6,420,380
--------------------------------------------------------------------------------
Total Materials 21,316,760
=========================================================================================
Producer Durables--1.1%
Road & Rail--1.1%
Norfolk Southern Corp. 134,000 7,236,000
--------------------------------------------------------------------------------
Total Producer Durables 7,236,000
--------------------------------------------------------------------------------
Total Common Stocks
(Cost--$591,444,687)--99.8% 685,396,869
=========================================================================================
Short-Term Beneficial
Securities Interest
=========================================================================================
Merrill Lynch Liquidity Series, LLC
Cash Sweep Series I, 4.75% (b)(c) $ 2,293,889 2,293,889
Merrill Lynch Liquidity Series, LLC
Money Market Series, 4.89% (b)(c)(d) 83,212,600 83,212,600
--------------------------------------------------------------------------------
Total Short-Term Securities
(Cost--$85,506,489)--12.5% 85,506,489
=========================================================================================
Total Investments (Cost--$676,951,176*)--112.3% 770,903,358
Liabilities in Excess of Other Assets--(12.3%) (84,270,300)
--------------
Net Assets--100.0% $ 686,633,058
==============
40 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Schedule of Investments (concluded) Master Large Cap Growth Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2006, as computed for federal income tax purposes, were as
follows:
Aggregate cost .............................. $ 679,801,093
=============
Gross unrealized appreciation ............... $ 107,811,287
Gross unrealized depreciation ............... (16,709,022)
-------------
Net unrealized appreciation ................. $ 91,102,265
=============
(a) Non-income producing security.
(b) Investments in companies considered to be an affiliate of the Portfolio,
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 $ 2,109,443 $ 54,322
Merrill Lynch Liquidity Series, LLC
Money Market Series $47,513,200 $ 27,621
--------------------------------------------------------------------------
(c) Represents the current yield as of 4/30/2006.
(d) Security was purchased with the cash proceeds from securities loans.
(e) Security, or a portion of security, is on loan.
o For Portfolio compliance purposes, the Portfolio's sector and industry
classifications refer to any one or more of the sector and industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Portfolio management. This
definition may not apply for purposes of this report, which may combine
sector and industry sub-classifications for reporting ease. Sectors and
industries are shown as a percent of net assets.
See Notes to Financial Statements.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 41
Schedule of Investments Master Large Cap Value Portfolio
Shares
Sector Industry Common Stocks Held Value
=========================================================================================
Consumer Discretionary--10.3%
Auto Components--1.0%
The Goodyear Tire & Rubber Co. (c)(d) 1,670,000 $ 23,380,000
--------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--0.6%
Darden Restaurants, Inc. (d) 380,000 15,048,000
--------------------------------------------------------------------------------
Household Durables--0.5%
Whirlpool Corp. (d) 130,000 11,667,500
--------------------------------------------------------------------------------
Leisure Equipment & Products--0.7%
Hasbro, Inc. 830,000 16,359,300
--------------------------------------------------------------------------------
Multiline Retail--2.7%
Dillard's, Inc. Class A (d) 840,000 21,907,200
JC Penney Co., Inc. 440,000 28,802,400
Nordstrom, Inc. (d) 340,000 13,032,200
--------------
63,741,800
--------------------------------------------------------------------------------
Specialty Retail--3.9%
AutoNation, Inc. (c)(d) 850,000 19,142,000
Circuit City Stores, Inc. 900,000 25,875,000
Claire's Stores, Inc. (d) 580,000 20,427,600
Office Depot, Inc. (c) 680,000 27,594,400
--------------
93,039,000
--------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.9%
Polo Ralph Lauren Corp. 360,000 21,859,200
--------------------------------------------------------------------------------
Total Consumer Discretionary 245,094,800
=========================================================================================
Consumer Staples--2.1%
Beverages--0.6%
Pepsi Bottling Group, Inc. 470,000 15,087,000
--------------------------------------------------------------------------------
Food & Staples Retailing--0.1%
The Kroger Co. 130,000 2,633,800
--------------------------------------------------------------------------------
Food Products--1.4%
Archer-Daniels-Midland Co. (d) 890,000 32,342,600
--------------------------------------------------------------------------------
Total Consumer Staples 50,063,400
=========================================================================================
Energy--21.9%
Oil, Gas & Consumable Fuels--21.9%
Amerada Hess Corp. (c)(d) 190,000 27,221,300
Anadarko Petroleum Corp. 310,000 32,494,200
Apache Corp. (d) 380,000 26,995,200
ConocoPhillips 710,000 47,499,000
Devon Energy Corp. (d) 520,000 31,257,200
Exxon Mobil Corp. 2,240,000 141,299,200
Kerr-McGee Corp. 270,000 26,962,160
Marathon Oil Corp. 430,000 34,124,800
Occidental Petroleum Corp. 390,000 40,068,600
Pioneer Natural Resources Co. (d) 550,000 23,551,000
Sunoco, Inc. 310,000 25,122,400
Tesoro Corp. (d) 360,000 25,171,200
Valero Energy Corp. 590,000 38,196,600
--------------------------------------------------------------------------------
Total Energy 519,962,860
=========================================================================================
Financials--27.2%
Capital Markets--7.8%
The Bear Stearns Cos., Inc. 210,000 29,927,100
Goldman Sachs Group, Inc. (d) 270,000 43,278,300
Janus Capital Group, Inc. (d) 1,230,000 23,935,800
Lehman Brothers Holdings, Inc. (d) 260,000 39,299,000
Morgan Stanley 700,000 45,010,000
State Street Corp. 70,000 4,572,400
--------------
186,022,600
--------------------------------------------------------------------------------
Commercial Banks--1.5%
Bank of America Corp. 690,000 34,444,800
--------------------------------------------------------------------------------
Diversified Financial Services--5.4%
CIT Group, Inc. 130,000 7,021,300
Citigroup, Inc. 900,000 44,955,000
JPMorgan Chase & Co. 1,700,000 77,146,000
--------------
129,122,300
--------------------------------------------------------------------------------
Insurance--10.5%
AON Corp. (d) 690,000 28,917,900
American Financial Group, Inc. (d) 360,000 15,940,800
CNA Financial Corp. (c)(d) 280,000 8,999,200
The Hanover Insurance Group, Inc. 50,000 2,645,000
Hartford Financial Services Group, Inc. 60,000 5,515,800
Lincoln National Corp. 380,000 22,070,400
MetLife, Inc. (d) 220,000 11,462,000
Nationwide Financial Services, Inc. Class A 270,000 11,847,600
Old Republic International Corp. (d) 587,500 13,071,875
Principal Financial Group, Inc. (d) 450,000 23,089,500
Prudential Financial, Inc. (d) 440,000 34,377,200
The St. Paul Travelers Cos., Inc. 650,000 28,619,500
UnumProvident Corp. (d) 860,000 17,466,600
W.R. Berkley Corp. 690,000 25,819,800
--------------
249,843,175
--------------------------------------------------------------------------------
Thrifts & Mortgage Finance--2.0%
MGIC Investment Corp. (d) 340,000 24,038,000
The PMI Group, Inc. (d) 510,000 23,536,500
--------------
47,574,500
--------------------------------------------------------------------------------
Total Financials 647,007,375
=========================================================================================
Health Care--10.7%
Biotechnology--1.1%
Applera Corp.--Applied Biosystems Group 920,000 26,532,800
--------------------------------------------------------------------------------
Health Care Providers & Services--7.7%
Aetna, Inc. 680,000 26,180,000
AmerisourceBergen Corp. 620,000 26,753,000
Cardinal Health, Inc. 400,000 26,940,000
Caremark Rx, Inc. 410,000 18,675,500
Health Net, Inc. (c) 430,000 17,501,000
Humana, Inc. (c) 360,000 16,264,800
McKesson Corp. (d) 520,000 25,266,800
WellPoint, Inc. (c) 350,000 24,850,000
--------------
182,431,100
--------------------------------------------------------------------------------
42 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Schedule of Investments (continued) Master Large Cap Value Portfolio
Shares
Sector Industry Common Stocks Held Value
=========================================================================================
Health Care (concluded)
Pharmaceuticals--1.9%
King Pharmaceuticals, Inc. (c) 1,480,000 $ 25,737,200
Pfizer, Inc. 820,000 20,770,600
--------------
46,507,800
--------------------------------------------------------------------------------
Total Health Care 255,471,700
=========================================================================================
Industrials--7.9%
Aerospace & Defense--3.5%
Northrop Grumman Corp. 430,000 28,767,000
Precision Castparts Corp. 400,000 25,192,000
Raytheon Co. 660,000 29,218,200
--------------
83,177,200
--------------------------------------------------------------------------------
Electrical Equipment--1.1%
Rockwell Automation, Inc. 100,000 7,246,000
Thomas & Betts Corp. (c) 310,000 17,654,500
--------------
24,900,500
--------------------------------------------------------------------------------
Machinery--2.0%
Cummins, Inc. (d) 230,000 24,035,000
SPX Corp. (d) 430,000 23,542,500
--------------
47,577,500
--------------------------------------------------------------------------------
Road & Rail--1.3%
CSX Corp. 450,000 30,820,500
Norfolk Southern Corp. 20,000 1,080,000
--------------
31,900,500
--------------------------------------------------------------------------------
Total Industrials 187,555,700
=========================================================================================
Information Technology--14.7%
Communications Equipment--0.7%
Motorola, Inc. 750,000 16,012,500
--------------------------------------------------------------------------------
Computers & Peripherals--3.6%
Hewlett-Packard Co. 1,770,000 57,471,900
NCR Corp. (c) 290,000 11,426,000
Western Digital Corp. (c) 860,000 18,094,400
--------------
86,992,300
--------------------------------------------------------------------------------
Electronic Equipment & Instruments--0.9%
Arrow Electronics, Inc. (c) 620,000 22,444,000
--------------------------------------------------------------------------------
IT Services--2.2%
Ceridian Corp. (c) 570,000 13,811,100
CheckFree Corp. (c) 180,000 9,696,600
Computer Sciences Corp. (c)(d) 480,000 28,104,000
--------------
51,611,700
--------------------------------------------------------------------------------
Office Electronics--1.2%
Xerox Corp. (c) 2,050,000 28,782,000
--------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment--1.8%
Advanced Micro Devices, Inc. (c) 160,000 5,176,000
Intersil Corp. Class A 520,000 15,397,200
LSI Logic Corp. (c) 2,030,000 21,619,500
--------------
42,192,700
--------------------------------------------------------------------------------
Software--4.3%
BEA Systems, Inc. (c) 1,100,000 14,575,000
BMC Software, Inc. (c) 1,050,000 22,617,000
Cadence Design Systems, Inc. (c) 890,000 16,847,700
Compuware Corp. (c) 1,980,000 15,206,400
Fair Isaac Corp. 440,000 16,328,400
Sybase, Inc. (c) 640,000 13,932,800
Synopsys, Inc. (c) 150,000 3,274,500
--------------
102,781,800
--------------------------------------------------------------------------------
Total Information Technology 350,817,000
=========================================================================================
Materials--2.3%
Chemicals--0.0%
Tronox, Inc. Class B 3 59
--------------------------------------------------------------------------------
Metals & Mining--1.3%
Nucor Corp. 280,000 30,469,600
--------------------------------------------------------------------------------
Paper & Forest Products--1.0%
MeadWestvaco Corp. 850,000 24,233,500
--------------------------------------------------------------------------------
Total Materials 54,703,159
=========================================================================================
Producer Durables--1.3%
Commercial Services & Supplies--1.3%
Waste Management, Inc. 800,000 29,968,000
--------------------------------------------------------------------------------
Total Producer Durables 29,968,000
=========================================================================================
Telecommunications Services--1.2%
Diversified Telecommunication Services--1.2%
Qwest Communications
International Inc. (c)(d) 4,120,000 27,645,200
--------------------------------------------------------------------------------
Total Telecommunications Services 27,645,200
--------------------------------------------------------------------------------
Total Common Stocks
(Cost--$1,980,483,601)--99.6% 2,368,289,194
=========================================================================================
Short-Term Beneficial
Securities Interest
=========================================================================================
Merrill Lynch Liquidity Series, LLC
Cash Sweep Series I, 4.75% (a)(e) $ 5,529,885 5,529,885
Merrill Lynch Liquidity Series, LLC
Money Market Series, 4.89% (a)(b)(e) 350,224,350 350,224,350
--------------------------------------------------------------------------------
Total Short-Term Securities
(Cost--$355,754,235)--15.0% 355,754,235
=========================================================================================
Total Investments (Cost--$2,336,237,836*)--114.6% 2,724,043,429
Liabilities in Excess of Other Assets--(14.6%) (346,766,536)
--------------
Net Assets--100.0% $2,377,276,893
==============
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 43
Schedule of Investments (concluded) Master Large Cap Value Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2006, as computed for federal income tax purposes, were as
follows:
Aggregate cost ............................. $ 2,340,901,040
===============
Gross unrealized appreciation .............. $ 406,749,708
Gross unrealized depreciation .............. (23,607,319)
---------------
Net unrealized appreciation ................ $ 383,142,389
===============
(a) Investments in companies considered to be an affiliate of the Portfolio,
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 $ (2,994,044) $215,574
Merrill Lynch Liquidity Series, LLC
Money Market Series $261,937,350 $ 92,392
--------------------------------------------------------------------------
(b) Security was purchased with the cash proceeds from securities loans.
(c) Non-income producing security.
(d) Security, or a portion of security, is on loan.
(e) Represents the current yield as of 4/30/2006.
o For Portfolio compliance purposes, the Portfolio's sector and industry
classifications refer to any one or more of the sector and industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Portfolio management. This
definition may not apply for purposes of this report, which may combine
sector and industry sub-classifications for reporting ease. Sectors and
industries are shown as a percent of net assets.
See Notes to Financial Statements.
44 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Statements of Assets and Liabilities Master Large Cap Series Trust
Master Large Master Large Master Large
Cap Core Cap Growth Cap Value
As of April 30, 2006 Portfolio Portfolio Portfolio
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value*+ ......... $3,485,257,909 $ 685,396,869 $2,368,289,194
Investments in affiliated securities, at value** ........... 496,063,888 85,506,489 355,754,235
Cash ....................................................... 1,597 -- 1,516,054
Receivables:
Securities sold ........................................... 35,232,150 9,336,684 15,082,793
Contributions ............................................. 11,999,269 2,759,537 14,372,609
Dividends ................................................. 1,810,700 255,120 1,960,000
Securities lending ........................................ 28,298 3,194 30,465
Prepaid expenses ........................................... 42,280 8,841 22,579
--------------------------------------------------------
Total assets ............................................... 4,030,436,091 783,266,734 2,757,027,929
--------------------------------------------------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value .................. 489,417,300 83,212,600 350,224,350
Bank overdraft ............................................. -- 54,832 --
Payables:
Securities purchased ...................................... 42,363,216 11,641,040 25,181,826
Withdrawals ............................................... 5,016,645 1,371,824 3,317,196
Investment adviser ........................................ 1,240,783 263,117 892,303
Other affiliates .......................................... 33,651 6,379 19,950
Accrued expenses ........................................... 199,681 83,884 115,411
--------------------------------------------------------
Total liabilities .......................................... 538,271,276 96,633,676 379,751,036
--------------------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ................................................. $3,492,164,815 $ 686,633,058 $2,377,276,893
========================================================
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Investors' capital ......................................... $2,849,270,657 $ 592,680,876 $1,989,471,300
Unrealized appreciation--net ............................... 642,894,158 93,952,182 387,805,593
--------------------------------------------------------
Net Assets ................................................. $3,492,164,815 $ 686,633,058 $2,377,276,893
========================================================
* Identified cost for unaffiliated securities ............. $2,842,363,751 $ 591,444,687 $1,980,483,601
========================================================
** Identified cost for affiliated securities ............... $ 496,063,888 $ 85,506,489 $ 355,754,235
========================================================
+ Securities loaned, at value ............................. $ 467,967,223 $ 80,840,537 $ 340,166,024
========================================================
See Notes to Financial Statements.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 45
Statements of Operations Master Large Cap Series Trust
Master Large Master Large Master Large
Cap Core Cap Growth Cap Value
For the Six Months Ended April 30, 2006 Portfolio Portfolio Portfolio
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends .................................................. $ 15,280,809 $ 2,177,170 $ 12,048,517
Interest from affiliates ................................... 166,970 54,322 215,574
Securities lending--net .................................... 158,874 27,621 92,392
--------------------------------------------------------
Total income ............................................... 15,606,653 2,259,113 12,356,483
--------------------------------------------------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ................................... 7,120,378 1,450,824 4,735,604
Accounting services ........................................ 271,190 109,712 202,540
Custodian fees ............................................. 73,028 26,237 54,056
Professional fees .......................................... 44,922 21,294 27,975
Trustees' fees and expenses ................................ 42,547 13,820 30,029
Pricing fees ............................................... 503 515 532
Other ...................................................... 30,761 6,814 12,889
--------------------------------------------------------
Total expenses ............................................. 7,583,329 1,629,216 5,063,625
--------------------------------------------------------
Investment income--net ..................................... 8,023,324 629,897 7,292,858
--------------------------------------------------------
===================================================================================================================================
Realized & Unrealized Gain--Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain on investments--net .......................... 105,686,005 24,131,080 48,571,943
Change in unrealized appreciation on investments--net ...... 283,341,088 46,824,193 183,694,465
--------------------------------------------------------
Total realized and unrealized gain--net .................... 389,027,093 70,955,273 232,266,408
--------------------------------------------------------
Net Increase in Net Assets Resulting from Operations ....... $ 397,050,417 $ 71,585,170 $ 239,559,266
========================================================
See Notes to Financial Statements.
46 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Statements of Changes in Net Assets Master Large Cap Series Trust
Master Large Cap Core Portfolio
---------------------------------------
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net .................................................... $ 8,023,324 $ 16,926,054
Realized gain--net ........................................................ 105,686,005 185,237,400
Change in unrealized appreciation--net .................................... 283,341,088 159,284,150
---------------------------------------
Net increase in net assets resulting from operations ...................... 397,050,417 361,447,604
---------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ............................................... 794,862,930 1,040,896,976
Fair value of withdrawals ................................................. (366,447,278) (566,946,131)
---------------------------------------
Net increase in net assets derived from capital transactions .............. 428,415,652 473,950,845
---------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets .............................................. 825,466,069 835,398,449
Beginning of period ....................................................... 2,666,698,746 1,831,300,297
---------------------------------------
End of period ............................................................. $ 3,492,164,815 $ 2,666,698,746
=======================================
See Notes to Financial Statements.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 47
Statements of Changes in Net Assets Master Large Cap Series Trust
Master Large Cap Growth Portfolio
---------------------------------------
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net .................................................... $ 629,897 $ 1,419,849
Realized gain--net ........................................................ 24,131,080 27,951,501
Change in unrealized appreciation--net .................................... 46,824,193 17,275,515
---------------------------------------
Net increase in net assets resulting from operations ...................... 71,585,170 46,646,865
---------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ............................................... 202,189,358 226,416,991
Fair value of withdrawals ................................................. (76,539,592) (128,065,615)
---------------------------------------
Net increase in net assets derived from capital transactions .............. 125,649,766 98,351,376
---------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets .............................................. 197,234,936 144,998,241
Beginning of period ....................................................... 489,398,122 344,399,881
---------------------------------------
End of period ............................................................. $ 686,633,058 $ 489,398,122
=======================================
See Notes to Financial Statements.
48 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Statements of Changes in Net Assets Master Large Cap Series Trust
Master Large Cap Value Portfolio
---------------------------------------
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net .................................................... $ 7,292,858 $ 9,203,144
Realized gain--net ........................................................ 48,571,943 77,262,988
Change in unrealized appreciation--net .................................... 183,694,465 112,124,763
---------------------------------------
Net increase in net assets resulting from operations ...................... 239,559,266 198,590,895
---------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ............................................... 828,648,213 831,921,820
Fair value of withdrawals ................................................. (226,918,648) (305,014,008)
---------------------------------------
Net increase in net assets derived from capital transactions .............. 601,729,565 526,907,812
---------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets .............................................. 841,288,831 725,498,707
Beginning of period ....................................................... 1,535,988,062 810,489,355
---------------------------------------
End of period ............................................................. $ 2,377,276,893 $ 1,535,988,062
=======================================
See Notes to Financial Statements.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 49
Financial Highlights Master Large Cap Series Trust
Master Large Cap Core Portfolio
--------------------------------------------------------------------------
For the Six
Months Ended For the Year Ended October 31,
The following ratios have been derived April 30, ---------------------------------------------------------
from information provided in the financial statements 2006 2005 2004 2003 2002
====================================================================================================================================
Total Investment Return
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return ..................... 14.35%+ 18.35% 9.61% 25.11% (8.13%)
=========================================================================
====================================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses .................................... .50%* .51% .52% .54% .57%
=========================================================================
Investment income--net ...................... .53%* .72% .57% .48% .83%
=========================================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .... $3,492,165 $2,666,699 $1,831,300 $1,454,109 $ 873,704
=========================================================================
Portfolio turnover .......................... 38.13% 93.95% 135.48% 138.73% 150.18%
=========================================================================
* Annualized.
+ Aggregate total investment return.
See Notes to Financial Statements.
50 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Master Large Cap Growth Portfolio Master Large Cap Value Portfolio
- --------------------------------------------------------------- -----------------------------------------------------------------
For the Six For the Six
Months Ended For the Year Ended October 31, Months Ended For the Year Ended October 31,
April 30, ------------------------------------------------- April 30, ---------------------------------------------------
2006 2005 2004 2003 2002 2006 2005 2004 2003 2002
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
14.34%+ 12.47% 5.42% 25.01% (13.56%) 13.92%+ 21.93% 14.57% 27.05% (3.40%)
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
.56%* .57% .59% .61% .67% .53%* .55% .56% .57% .60%
====================================================================================================================================
.22%* .33% .09% .04% (.01%) .77%* .80% .93% .97% 1.17%
====================================================================================================================================
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
$ 686,633 $ 489,398 $ 344,400 $ 250,166 $ 185,676 $2,377,277 $1,535,988 $ 810,489 $ 515,257 $ 386,918
====================================================================================================================================
51.87% 131.79% 164.94% 178.11% 177.46% 27.97% 94.95% 127.59% 157.04% 136.92%
====================================================================================================================================
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 51
Notes to Financial Statements Master Large Cap Series Trust
1. Significant Accounting Policies:
Master Large Cap Core Portfolio, Master Large Cap Growth Portfolio and Master
Large Cap Value Portfolio (the "Portfolios" or individually as the "Portfolio")
constitute the Master Large Cap Series Trust (the "Trust"). The Trust is
registered under the Investment Company Act of 1940, as amended, and is
organized as a Delaware statutory trust. The Declaration of Trust permits the
Trustees to issue nontransferable interests in the Portfolio, subject to certain
limitations. The Portfolios' 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 following is a summary of significant accounting policies followed
by the Portfolio.
(a) Valuation of investments -- Equity securities that are held by each
Portfolio 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 Trust. Long positions traded in the over-the-counter ("OTC")
market, Nasdaq Small Cap or Bulletin Board are valued at the last available bid
price or yield equivalent obtained from one or more dealers or pricing services
approved by the Board of Trustees of the Trust. 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.
Options written are valued at the last sale price in the case of exchange-traded
options or, in the case of options traded in the OTC market, the last asked
price. Options purchased are valued at their last sale price in the case of
exchange-traded options or, in the case of options traded in the OTC market, the
last bid price. Swap agreements are valued based upon quoted fair valuations
received daily by the Portfolios from a pricing service or counterparty.
Financial futures contracts and options thereon, which are traded on exchanges,
are valued at their last sale price as of the close of such exchanges.
Obligations with remaining maturities of 60 days or less are valued at amortized
cost unless the Investment Adviser believes that this method no longer produces
fair valuations. Valuation of other short-term investment vehicles is generally
based on the net asset value of the underlying investment vehicle or amortized
cost.
Repurchase agreements are valued at cost plus accrued interest. Each Portfolio
employs pricing services to provide certain securities prices for the Portfolio.
Securities and 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 Trust, including valuations furnished by the
pricing services retained by each Portfolio, which may use a matrix system for
valuations. The procedures of a pricing service and its valuations are reviewed
by the officers of the Trust under the general supervision of the Trust's Board
of Trustees. Such valuations and procedures will be reviewed periodically by the
Board of Trustees of the Trust.
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 assets of each Portfolio 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 each Portfolio's net assets. 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 Trust's Board of Trustees or by the Investment Adviser using a pricing
service and/or procedures approved by the Trust's Board of Trustees.
(b) Derivative financial instruments -- Each Portfolio may engage in various
portfolio investment strategies both to increase the return of the Portfolio 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.
52 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Notes to Financial Statements (continued) Master Large Cap Series Trust
o Financial futures contracts -- Each Portfolio 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
date and at a specific price or yield. Upon entering into a contract, the
Portfolio deposits and maintains as collateral such initial margin as
required by the exchange on which the transaction is effected. Pursuant to
the contract, the Portfolio 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 Portfolio as unrealized gains or losses. When the contract is
closed, the Portfolio 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.
o Options -- Each Portfolio may purchase and write call and put options.
When the Portfolio writes an option, an amount equal to the premium
received by the Portfolio is reflected as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market 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 Portfolio enters into a
closing transaction), the Portfolio realizes a gain or loss on the option
to the extent of the premiums received or paid (or a gain or loss to the
extent that the cost of the closing transaction exceeds the premium paid
or received).
Written and purchased options are non-income producing investments.
(c) Income taxes -- Master Large Cap Core Portfolio is classified as a
partnership for federal income tax purposes. Master Large Cap Growth Portfolio
and Master Large Cap Value Portfolio are considered as a "pass-through" entity
for federal income tax purposes. As such, each investor in the Portfolio is
treated as owner of its proportionate share of the net assets, income, expenses
and realized and unrealized gains and losses of the Portfolio. Therefore, no
federal income tax provision is required. It is intended that the Portfolio's
assets will be managed so an investor in the Portfolio can satisfy the
requirements of subchapter M of the Internal Revenue Code.
(d) Security transactions and investment income -- Security transactions are
accounted for on the date the securities are purchased or sold (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 may have passed are
subsequently recorded when the Portfolio has determined the ex-dividend date.
Interest income is recognized on the accrual basis.
(e) Securities lending -- Each Portfolio 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 Portfolio and any additional required collateral is delivered to the
Portfolio on the next business day. Where the Portfolio receives securities as
collateral for the loaned securities, it receives a fee from the borrower. The
Portfolio typically receives the income on the loaned securities, but does not
receive the income on the collateral. Where the Portfolio 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 Portfolio may pay reasonable
finders, 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 Portfolio
could experience delays and costs in gaining access to the collateral. The
Portfolio 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.
(f) Bank overdraft -- The Master Large Cap Growth Portfolio recorded a bank
overdraft, which resulted from management estimates of available cash.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Trust has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("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.
FAM is responsible for the management of each Portfolio's investments and
provides the necessary personnel, facilities,
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 53
Notes to Financial Statements (concluded) Master Large Cap Series Trust
equipment and certain other services necessary to the operations of the
Portfolio. For such services the Master Large Cap Core Portfolio pays a monthly
fee at an annual rate of .50% of the average daily value of the Portfolio's net
assets not exceeding $1 billion and .45% of average daily net assets in excess
of $1 billion. Master Large Cap Growth Portfolio and Master Large Cap Value
Portfolio each pay a monthly fee at an annual rate of .50% of the average daily
value of the Portfolio'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 MLAM U.K. provides investment advisory
services to FAM with respect to the Portfolio. There is no increase in the
aggregate fees paid by the Portfolio for these services.
The Portfolios have received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S"), an affiliate of FAM, or its affiliates.
As of April 30, 2006, the Master Large Cap Core Portfolio, Master Large Cap
Growth Portfolio and Master Large Cap Value Portfolio lent securities with
values of $165,074,417, $47,535,355 and $167,018,356, respectively, to MLPF&S or
its affiliates. Pursuant to that order, the Portfolios also have 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 Portfolios,
invest cash collateral received by the Portfolios for such loans, among other
things, in a private investment company managed by MLIM, LLC or in registered
money market Portfolios advised by Merrill Lynch Investment Managers, L.P.
("MLIM"), an affiliate of FAM. For the six months ended April 30, 2006, MLIM,
LLC received $69,922, $11,904 and $41,056 in securities lending agent fees for
Master Large Cap Core Portfolio, Master Large Cap Growth Portfolio and Master
Large Cap Value Portfolio, respectively.
For the six months ended April 30, 2006, the Portfolios reimbursed FAM for
certain accounting services as follows:
- --------------------------------------------------------------------------------
Reimbursement
- --------------------------------------------------------------------------------
Master Large Cap Core Portfolio ............................ $30,607
Master Large Cap Growth Portfolio .......................... $ 6,044
Master Large Cap Value Portfolio ........................... $17,257
- --------------------------------------------------------------------------------
Certain officers and/or trustees of the Trust are officers and/or directors of
FAM, PSI, MLAM U.K., ML & Co., MLIM, and/or MLIM, LLC.
In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to
contribute ML & Co.'s investment management business, including FAM and MLIM, to
the investment management business of BlackRock, Inc. The transaction is
expected to close in the third quarter of 2006.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended April 30, 2006 were as follows:
- --------------------------------------------------------------------------------
Total Purchases Total Sales
- --------------------------------------------------------------------------------
Master Large Cap Core Portfolio ........ $1,610,140,296 $1,178,257,849
Master Large Cap Growth Portfolio ...... $ 429,747,004 $ 304,702,784
Master Large Cap Value Portfolio ....... $1,141,934,865 $ 537,860,194
- --------------------------------------------------------------------------------
4. Short-Term Borrowings:
Each Portfolio, along with certain other funds managed by FAM and its
affiliates, is party to a $500,000,000 credit agreement with a group of lenders.
The Portfolio may borrow under the credit agreement to fund shareholder
redemptions and for other lawful purposes other than for leverage. The Portfolio
may borrow up to the maximum amount allowable under the Portfolio's current
prospectus and statement of additional information, subject to various other
legal, regulatory or contractual limits. The Portfolio pays a commitment fee of
..07% per annum based on the Portfolio'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 Portfolio's election, the federal funds rate plus
..50% or a base rate as defined in the credit agreement. None of the Portfolios
borrowed under the credit agreement during the six months ended April 30, 2006.
On November 23, 2005, the credit agreement was renewed for one year under
substantially the same terms.
5. Subsequent Event:
Effective May 9, 2006, FAM has contractually agreed to implement an additional
breakpoint for a portion of its investment advisory fee. For such services,
Master Large Cap Core Portfolio pays a monthly fee at an annual rate of .50% of
the average daily net assets not exceeding $1 billion, .45% of average daily net
assets in excess of $1 billion but not exceeding $5 billion and .40% of average
daily net assets in excess of $5 billion; Master Large Cap Growth Portfolio pays
a monthly fee at an annual rate of .50% of the average daily net assets not
exceeding $5 billion and .45% of average daily net assets in excess of $5
billion; and Master Large Cap Value Portfolio pays a monthly fee at an annual
rate of .50% of the average daily net assets not exceeding $3 billion and .45%
of average daily net assets in excess of $3 billion.
54 MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006
Officers and Directors/Trustees
Robert C. Doll, Jr., President, Director/Trustee and Portfolio Manager
James H. Bodurtha, Director/Trustee
Kenneth A. Froot, Director/Trustee
Joe Grills, Director/Trustee
Herbert I. London, Director/Trustee
Roberta Cooper Ramo, Director/Trustee
Robert S. Salomon, Jr., Director/Trustee
Donald C. Burke, Vice President and Treasurer
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
- --------------------------------------------------------------------------------
Effective January 1, 2006, Stephen B. Swensrud retired as Director/Trustee of
Merrill Lynch Large Cap Series Fund, Inc. and Master Large Cap Series Trust. The
Fund's/Trust's Board of Directors/Trustees wishes Mr. Swensrud well in his
retirement.
- --------------------------------------------------------------------------------
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules 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 Funds' Forms N-Q are available on the SEC's
Web site at http://www.sec.gov. The Funds' 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 Funds offer electronic delivery of communications to their 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.
MERRILL LYNCH LARGE CAP SERIES FUNDS, INC. APRIL 30, 2006 55
[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 Funds unless accompanied or preceded by the Funds'
current prospectus. Past performance results shown in this report should not be
considered a representation of future performance. 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.
A description of the policies and procedures that the Funds use 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 each Fund voted proxies
relating to securities held in the Funds' portfolios 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 Large Cap Series Funds, Inc.
Box 9011
Princeton, NJ 08543-9011
#CAPSERIES -- 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 Large Cap Series Fund, Inc. and Master Large Cap Series Trust
By: /s/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Merrill Lynch Large Cap Series Fund, Inc. and Master Large Cap Series Trust
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 Large Cap Series Fund, Inc. and Master Large Cap Series Trust
Date: June 22, 2006
By: /s/ Donald C. Burke
---------------------------
Donald C. Burke,
Chief Financial Officer of
Merrill Lynch Large Cap Series Fund, Inc. and Master Large Cap Series Trust
Date: June 22, 2006