Merrill Lynch International Investment Funds

Transcription

Merrill Lynch Investment Manage rs
www.mliminternationaI.com
Prospectus
VISA 2006115952-3-0-PC
L'apposition du visa ne p
d'argument de publicite
Luxembourg, le 12/06/2006
Commission de Surveillance du Sect
This prospectus is only valid
if read in conjucntion with the addendum
dated 19 May 2006.
MERRILL LYNCH INTERNATIONAL INVESTMENT FUNDS
(the "Company")
Addendum to the Prospectus
This Addendum dated 19th May 2006 should be read in conjunction with the Prospectus dated 24th March 2006 (the "Prospectus").
All decisions t o subscribe for Shares should be made on the basis of the information Coritdined in the Prospectus, as modified and
supplemented by this Addendum, and in the most recent annual, and if later, half-yearly, Report and Accounts of the Company.
Insert the following in the section "Investment Advisers" on page 4:
"BlackRock Capital Management, Inc.
100 Bellevue Parkwax Wilmington, Delaware 19809, USA "
Insert t h e following
in the section "Investment Advisers" on page 8:
"BlackRock Capital Management, Inc. is regulated by the Securities and Exchange Commission. It is an indirect operating subsidiary of
BlackRock, Inc. which 15 a subsidiary of The PNC Financial Services Group, Inc both of which are US public companies. As of March 3 1,
2006, BlackRock Inc. and its subsidiaries managed 8463.I billion in client assets. ".
Amend the first paragraph of section 9, "The Investment Manager and the Investment Advisers", of Appendix C so as to read as follows:
"The Management Company and the Company have entered into an Investment Management Agreement with the Investment Manager
whereby the Investment Manager is responsible for managing the a.rset.rof the Company The Investment Manager is entitled to delegate
its investment management functions to any of its subsidiaries or associates and, with the approval of the Management Companx any
other person. The Investment Manager has delegated .some fundons to the Investment Advisers, Merrill Lynch Investment Managers
Limited, Fund Asset Management, L.P and ElackRock Capital Management, Inc. as described on page 8 and, in the case of certain Funds,
Merrill Lynch Irwestment Managers Limited has in turn sub-delegatedsome functions to Merrill Lynch lnvestmenr Managers Co., Ltd. "
Insert the following as a new section on page 9 before thc heading "Special Risk Considcrations":
BlackRock
On 15 February 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch announced that they had reached an agreement to contribute
the MLIM GroLp to BlackRock to create a new independent company that will be one of the wor,d's largest asset management firms
with nearly $ 1 trillion in assets undm management. This transaction has been approved by the Boards of both Mfrrill Lynch and
BlackRock and is expected to close in the third quarter 2006. The new company will operate under the BlackRock name and be
governed by a Board of Directors with a majority of independent members.
As a result of the above transaction the, Company's Investment Manager; Merrjll Lynch Investment Managers (Channel Islands) limited
is expected to become an indirect wholly owned subsidiary of the new company:"
Amend the heading and section 27 of Appendix C so as to read as follows:
"Relationships w i t h t h e ML Group and other associated companies
27. The dtimatp holding company of the Management Conipanj the Investment Manager and the Investment Advisers (except
BlackRock Capital Management, Inc.) is Merrill Lynch & Co., Inc., a company incorporated in Delaware, USA. BlackRock Capital
Management, Inc. 1.5 a subsidiary of BlackRock, Irx., a company incorporated in Delaware, whose ultimate holding company is The PNC
FirIdnCial Services Group, Inc. In respect of those Funds of the Company which are advised by BlackRock Capital Management, Inc.
some or all of the conflicts set out below in respect of companies in the ML Group may apply in the same way to BlackRock Capital
Management, Inc. and its associated companies. "
Insert the following in the section "Class D Shares" on page 25:
"Class D Shares may also be available in global certificate form.
"
19th May 2006
Page
Contents
Introduction t o Merrill Lynch International Investment Funds
2
General
3
Distribution
3
Management a i d Administration
4
Enquiries
4
Board of Directors
5
Glossary
6
investment Management of Funds
8
Special Risk Considerations
9
Excessive Trading Policy
17
Investment Objectives 8 Policies
17
Classes and Form of Shares
25
Dealing in Fund Shares
26
Prices of Shares
27
Application for Shares
27
Redemption of Shares
28
Conversion of Shares
29
Dividends
30
Fees, Charges and Expenses
32
Taxation
33
Meetings and Reports
34
Appendix A
-
lrvestment and Borrowing Powers and Restrictions
36
Appendix B - Summary of Certain Provisions of the Articles and of Conipany Practice
41
Appendix C -Additional Information
48
Appendix D - Authorised Status
55
Appendix E -Summary of Charges and Expcnscs
58
Appendix F - Available Funds and Share Classes
64
Summary of Subscription Procedure and Payment Instructions
70
Introduction t o Merrill Lynch International Investment Funds
Structure
Listing
Merrill Lynch International investment Funds ("the Company") is
Shares of certain Classes of all Funds are, or will be, listed on the
incorporated in Luxembourg as an open-ended investment
Luxembourg Stock Exchange.
company and qualifies as a Part I UCITS (Undertakirg for
Collective Investment in Transferable Securities). It has an
Choice of Funds
"umbrella" structure comprising a number o f different Funds,
As of the date of this Prospectus, investors are able t o choose
each having a separate portfolio of investments. The Company
from the following Funds of Merrill Lynch International
has appointed Merrill Lynch Investment Managers (Luxembourg)
investment Funds:
S.A. as its management company.
Asian Dragon Fund (E)
Asian Tiger Bond Funo (B)
BYlC Fund* (E)
Conservative Allocation Fund (Euro) (Ml
Conservative Allocation Fund (US Dollar) (M)
Continental European Growth Fund (E)
Corporate Bond Fund (Euro) (until 31 July 2006) (B)
Emerging Europe Fund (E)
EmergingMarkets Bond Fund (B)
EmergingMarkets Fund (E)
Euro Bond Fund (B)
Euro Corporate Bond Fund (e'fectire 31 1
Euro-MarketsFund (E)
European Fund (E)
EuropCdn FOCUS Fund' (E)
European Growth Fund (E)
European Opportunities Fund (E)
EuropeanValue Fund (El
Euro ReserveFund [B)
Global Allocation Fund (W)
Global Bond Fund (Euro) ( S i
Global Bond Fund (US Dollar)(BJ
Global Capital Securities Absolute ReturnFund (8)
Global Dynamic Equity Fund (E)
Global Equity Core Fund (E)
Glonal Equity Diwersiiiedfund (E)
Glooal Focus Fund' El
Glooal FundamentalValue Fund (E)
Glooal Growth Fund* (E)
Global High Yield Bond Fund (Euro) (8)
Global Opponlmities Fund (E)
Global SmallCap Fund (E)
Greater thtna Fund' (E)
India Fund* (E)
Japan Fund (E)*
Japari OpportunftieSFund (E)'
Japan Value Fund (E)'
Latin American Fund (E)
New Fnergy Fund (E)
Pacific Equity Fund (E)
Short Duration Bond Fund (Euro) (B)
Sterling Reserve Fund (E)
Strategic Allocation Fund (Euro) (W)
Strategic Allocation Fund (US Dollar) (M)
Thailand Funo* (E)
UK Focus Fund' (E)
United Kingdom Fund (E)
US Basic Value Fund (E)
us$
uss
.
f andE
us5
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e
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US%
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US$ and f
f and €
US Dollar Core Bond Fund (B)
US Doliar High Yield Bond Fund (E)
US Dollar Low Duratton Bond Fund (E)
US Dollar Reserve Fund (8,
US Flexible Equity Fund (E)
US Focused Value Fund (D
US Governrent Mortgage Fund (B)
US Growth Furlo (El
US OpportunitieT Fund (E)
US SmallCap Value Fund (E)
2 Mttrrill Lvnrh International Investment runds
6
"€
e
us5
us5
US$
>
€
€
e
World Bond Fund (5)
World Energy Fund (E)
World Financial5 Fun0 (E)
World Gold Fund (E)
World Healthscience Fund (E)
World Income Fund (B)
World Mining Fund (F)
World Technology Fund (E)
US$
a
US$
E
US$
US$
€
, €
US$
US5
US8
f and f
e
e
Fund not availablc for subscription at the date of this Prospectus Such Funds may be launched a t the Directors’ discretion. Confirmatior of the launch date of
these Funds will then be made available a t the investor Service Ccntrc. Any provirions in this Prospectus relating to any one of these Funds shall only take effect
from the launch date of the relevant Fund.
Fund 15 only registered in Luxembourg, Germany and Switzerland.
With effect from 29 May 2006, these Funds will have yen as a dealing currency and also retain US dollars and euro as additional dealing currencies
B Bond Fund
E Equity Fund
Iv: Mixed Fund
1
’
General
I n f o r m a t i o n u p d a t i n g this Prospectus may, if appropriate,
If y o u are in a n y d o u b t a b o u t t h e contents of this
appear in t h e r e p o r t a n d accounts.
Prospectus o r w h e t h e r a n investment in t h e Company is
suitable f o r you, y o u s h o u l d consult y o u r stockbroker,
Statements made in this Prospectus are based o n the law and
solicitor, accountant, r e l a t i o n s h i p m a n a g e r o r o t h e r
practice currently in force in the Grand-Duchy of Luxembourg
professional adviser.
and are subject t o changes in such law.
The Directors of the Company, whose names appear on page 4,
Distribution
are the persons responsible for the information contained in this
This Prospectus does not constitute an offer or solicitation
document. To tl-e best o f the knowledge and belief o f the
by anyone in any lurisdiction in which such offer or solicitation
Directors (who have taken all reasonable care t o ensure that such
is not lawful or in which the person making such offer
is the case), the information contained in this document
or solicitation is not qualified t o do so or t o anyone t o w h o m
is
in accordance w i t h the facts and does not omit anything likely
it is unlawful t o make such offer or solicitation. Details of
t o affect the import of such information. The Directors accept
countries in which the Company is currently authorised t o offer
responsibility accordingly.
Shares arc contained in Appendix 0.Prospective subscribers for
Shares should inform themselves as t o the legal requirements
No person has been authorised t o give any information or t o
of applying for Shares and of applicable exchange control
make any representations other than those contained in this
regulations and taxes in the countries of their respective
Prospectus, the documents mentioned herein and any brochures
citizenship, residence or domicile. US Persons are not permitted
that are issued by the Company as substitute offering documents.
t o subscribe for Shares. In some countries investors may be able
t o subscribe for Shares through Regular Savings Plans. The fees
It should be remembered that the price of the Shares of each
and commissions relating t o Regular Savings Plans during the first
of the Funds can go d o w n as well as up. Changes in the rates
year must not exceed one third of the amount contributed by the
of exchange between currencies may cause the value of Shares,
investor. These fees and commissions d o not include premiums t o
expressed in their Dealing Currency(ies), t o go up or down.
be paid by the investor where the Regular Savings Plan is offered
Accordingly, an investor may not receive back the amount
as part of a life insurance or whole life insurance product. Please
he or she invested.
contact the Investor Service Centre for more details.
All decisions t o subscribe for Shares should b e m a d e o n t h e
24 March 2006
basis of t h e i n f o r m a t i o n c o n t a i n e d in this Prospectus which
is issued b y t h e Company a n d in t h e most recent a n n u a l a n d
(if later) i n t e r i m r e p o r t a n d accounts of t h e Company w h i c h
a r e available f r o m t h e registered o f f i c e of t h e Company.
h’errill Lynch International Investment Funds 3
Management and Administration
M a n a g e m e n t Company
Listing A g e n t
Merrill Lynch Investment Managers (Luxembourg) S.A.
J.P. Morgan Bank Luxembourg S.A.
6D route de Treves, L-2633 Senningerberg, Luxembourg
6C, Route de Treves, L-2633 Senningerberg,
Grand Duchy of Luxembourg
Investment Advisers
Mcrrill lynch Investment Managers Limited
Paying Agents
33 King William Street, London EC4R 9AS. UK
A list of Paying Agents is t o be found on page 49.
Fund Asset Management, L.P.
800 Scudders Mill Road, Plainsboro, NJ 08536, USA
Registered Office
Aerogolf Centre, 1A Hoehenhof,
Investment M a n a g e r a n d Principal D i s t r i b u t o r
L-1736 Senningerberg, Luxembourg
Merrill Lynch Investment Managers (Channel Islands) Limited
Forum House, Grenville Street, St. Helier, Jersey JE4 8RL,
Enquiries
Channel Islands
In the absence of other arrangements, enquiries regarding the
Company should be addressed as follows:
Investor Services
Written enquiries: Merrill Lynch Investment Managers, c/o
Written Enquiries: Merrill Lynch Investment Managers, c/o
J.P. Morgan Bank Luxembourg S.A., P.O. Box 1058,
J.P. Morgan Bank Luxembourg S.A., P.O.
Box 1058, L l O l O
All other enquiries: Telephone:
Luxembourg
All other enquiries: Telephone:
L-1010, Luxembourg
+ 44 207 995 6655,
Fax: + 4 4 207 743 1143
Custodian
T h Bank of New York Europe Limited, Luxembourg Branch
Aerogolf Center, 1 A Hoehenhof,
L - I 736 Senningerberg, Luxembourg
Fund A c c o u n t a n t
TPe Bank of New York Europe Limited, Luxembourg Branch
Aerogolf Center, 1A Hoehenhof,
L-1736 Senningerberg, Luxembourg
Transfer A g e n t a n d Registrar
J.P. Morgan Bank Luxembourg S.A.
6C, Route de Treves, L-2633 Senningerberg,
Grand Duchy of Luxembourg
Auditor
PricewaterhouseCoopers
400 route d'Esch, L1471 Luxembourg
Legal Advisers
Linklaters Loesch
Avenue John F. Kennedy 35, L-1855 Luxembourg
4 Verrill Lynch lritcrnatioiial Investment Funds
Fax:
+ 4 4 207 743
1 143.
+ 44 207 995 6655,
Board of Directors
Chairman
Robert Fairbairn
Managing Director, Chief Operating Officer, EMEA Pacific
Merrill Lynch Investment Managers Limited
33 King William Street, London EC4R 9AS. UK
Directors
Frank
P. Le Feuvre
Managing Director, Merrill Lynch Investment Managers
(Channel Islands) Limited
Forum House, Grenvillc Street, St. Helier, Jersey JE4 XRL,
Channel Islands
Geoffrey Radcliffe
Director and General Manager
6D route de Treves, L-2633 Senningerberg, Luxembourg
Jean-Claude Woltcr
Avocat Honoraire
232, rue Edith Cavell, B-1180 Brussels, Belgium
Andrew Oonohue
First Vice President, General Counsel
Merrill Lynch Inbestment Managers, L.P.
Princeton, New Jersey, USA
James Charrington
Managing Director, Head of Retail Business, EMEA Pacific
33 King William Street, London EC4R 9AS, UK
Emilio Novela Berlin
Independent Director
Paseo de la Castellana 40 bis - 4a Planta, 28046 Madrid, Spain
Merrill Lynch International Investment Funds 5
Glossary
Base Currency
Share Classes may, at the Directors’ discretion, be made available
In relation t o Shares of any Fund, the currency indicated on page 2.
in other Funds and in other currencies Confirmation of the other
Funds and currencies in which :he Hedged Share Classes may be
Business Day
In relation t o Shares of any Fund, any day normally treated as
available and the date o f their launch can then be obtained from
a
the registered office of the Company and from the Investor
business day in Luxembourg for banks and the Luxembourg stock
Service Centre An updated list of available Hedged Share Classes
exchange and such other days as the Directors may decide.
will be included in the next version o f the Prospectus All
CDSC
the shareholders of the respect ve Hedged Share Classes
gainsllosses from hedging transactions are borne separately by
Contingent deferred sales charge
Investment M a n a g e r
Dealing Currency
Merrill Lynch Investment Managers (Channel Islands) Limited
In relation t o Shares of any Fund, the currency or currencies
acting either ir! its capacity as Investment Manager or in its
indicated on page 2 as at the date o f this Prospectus. Other
capacity as Principal Distributor as further described in Appendix
additional Dealing Currencies may be introduced at the Directors’
C. References t o distributors may include the Investment
discretion. Confirmation of the further additional Dealing
Manager in its capacity as Principal Distributor.
Currencies and the date of their availability can then be obtained
from the rcgistcrcd office of the Company and from the Investor
Investor Service Centre
Service Centre. An updated list of available Dealing Currencies
Merrill Lynch Investment Managers Limited (or such other MLlM
will be included in the next version o f the Prospectus.
Group company that may perform such functions from time t o
time) for dealing and investor servicing functions.
Dealing Day
In relation t o Shares of any Fund, any Business Day (other than
M a n a g e m e n t Company
one falling within a pcriod of suspension).
Merrill Lynch Investment Managers (Luxembourg) S.A., a
Luxembourg societe anonyme authorised as a rnanagemcnt
Directors
company under the law of 20 December 2002.
The Directors of the Company,
M e r r i l l Lynch
D i s t r i b u t i n g Funds a n d D i s t r i b u t i n g Shares
Merrill Lynch International & Co., Inc. or one of its associated
Those Shares for which dividends are currently declared and in
companies (other than the Investment Manager or the
respect of which currency and which Fund are set out in
Investment Advisers).
Appendix F Dividends may be decldred on Distributing Shares of
other Funds and in other currencies at the Directors’ discretion
M L Fund
Confirmation of the additional Funds, Share Classes and
Any fund established in Luxembourg that qualifies as a Part I
currencies on which dividcnds may be declared will then be
UClTS and for which thc investment adviser is Mcrrill Lynch
made available from the registered office of the Company and
Investment Managers, L.P. or Merrill Lynch Bank (Suisse) S.A. or
frorri the Inve5tor Service Centre An updated list of available
one of their affiliates other than the Investment Manager or
Distributing Shares will be included in the next version of the
Merrill Lynch lnvcstmcnt Managers Limited.
Prospectus
ML G r o u p
Funds
The Merrill Lynch group of companies, the ultimate holding
The funds of the Company described in this Prospectus.
company of which is Merrill Lynch & Co., Inc.
H e d g e d Share Classes
M L I M Group
Those Share Cl&ses of those Funds for which hedged shares are
The Merrill Lynch Investment Managers group, a business division
currently available are set out in Appendix F. Additional Hedged
o f the ML Group.
6 Mecrill Lynch International Investment Funds
ML M o n e y M a r k e t Funds
Non-US registered money market investment funds for which the
investment adviser is Merrill Lynch Investment Managers, L.P. or
one of its affiliates other than the Investment Manager or Merrill
Lynch Investment Managers Limited.
Net Asset Value
In relation t o a Fund or a Share (of any Class), the amount
determined in accordance with the provisions described in
paragraphs 11 to 16 of Appendix B. The Net Asset Value of a
Fund may be adjusted in accordance w i t h paragraph 16(c) o f
Appendix B.
Prospectus
This document.
Share
A share in the capital of the Company, as described in this
Prosoectus.
Share Class
The class of share in each case of n o par value representing the
capital of the Company and linked t o a particular Fund, as
described o n page 25.
Subsidiary
Merrill Lynch India Equities Fund (Mauritius) Limited. a whollyowned subsidiary of the Company, incorporated as a private
company limited by shares through which the India Fund and
certain other Funds may invest in securities.
U K D i s t r i b u t o r Status Funds a n d U K D i s t r i b u t o r Status
Shares
Those Funds which currently offer UK Distributor Status on their
Shares as at the date of this Prospectus are set out in Appendix F.
The Company may apply for UK Distributor Status f o r Shares of
other Funds anc for other Share Classes or Dealing Currencies o f
these Funds ana other Funds. Confirmation of the additional
Funds, Share Classes and Dealing Currencies in respect of which
the Company may apply for UK Distributor Status will then be
available from the registered office o f the Company and from the
Investor Service Centre. A n updated list of available UK
Distributor Status Funds, Share Classes and Dealing Currencies
will be included in the next version o f the Prospectus.
Nerrill Lynch lriternational Investment Funos 7
Investment Management of
Funds
Management
The Management Company has delegated i t s investment
The Directors are responsible for the overall investment policy
management functions t o the Investment Manager, w h o in turn
o f the Company.
has appointed the Investment Advisers The Investment Advisers
provide advice and management in the areas of stock and sector
Merrill Lynch Investment Managers (Luxembourg)
5A
has been
selection and strategic allocation One of the Investment Advisers,
appointed by thc Company t o act as i t s management company.
Merrill Lynch Investment Managers Limited, has sub-delegated
The Management Company is authorised t o act as a fund
some of these functions t o Merrill Lynch Investment Managers
management company in accordance with Chapter 13 of the
Co., Ltd Notwithstanding the appointment of the Investment
law of 20 December 2002.
Advisers, the Investment Manager accepts full responsibility t o the
Thc Company has signed a management company agreement
transactions, subject t o the direction of the Management
(the "Management Corripdriy Agreement") with the Management
Company's Directors. Merrill Lynch Investment Managers Limited
Company. Under this agreement, the Management Company
also acts as the Investment Manager t o the Subsidiary.
Management Company and to the Company for all investment
15
entrusted with the day-to-day management of the Company, with
responsibility for performing directly or by way of delegation all
Investment Advisers
operational functions relatirig to the Company's investment
Merrill Lynch Investment Managers Limited is the principal
management, administration, and the marketing of the Funds.
operating subsidiary of Merrill Lynch Investment Managers Group
Limited, which is a subsidiary of Merrill Lynch & Co., Inc.
In agreement with the Company, the Management Company has
It is regulated by the Financial Services Authority ("FSA") but
decided t o delegate several of its functions as is further described
the Company will not be a customer of Merrill Lynch Investment
Managers Limited for the purposes of the FSA Rules and will
in this Prospectus.
accordingly not directly benefit from the protection of those Rules.
The directors of the Management Company are:
Merrill Lynch Investment Managers Limited forms part of the MLlM
Frank P Le Feuvre
Group. The MLlM Group currently employs over 3,000 staff who
Managing Director, Merrill Lynch Investment Managers
provide investment management services internationally for
institutional, retail and private clients. The MLIM Group has over
Forum House, Grenville Street, St. Helier, Jersey JE4 SRL,
USB539 billion of assets under management and is represented in
18 countries. The ML Group is a major financial sewices group, the
Channel Islands
global activities o f which include not only those of the MLlM Group,
but also investment banking and securities brokerage businesses.
James Stratford
First Vice President, Global Head of Compliance
Fund Asset Management, L.P. was established
33 King William Street, London EC4R 9AS, UK
1976 and
on 15 December
is regulated by the Securities and Exchange
Commission, It has over US9133 billion o f assets under
Geoffrey Radcliffe
management. It is also a directly owned operating subsidiary of
Director drid General Manager
Merrill Lynch & Co., Inc. and forms part of the MLlM Group
6D route de Treves, L-2633 Senningcrberg, Luxembourg
Merrill Lynch Investment Managers (Luxembourg) S.A. is a wholly
owned subsidiary within the ML Group It is regulated by the
Commission de Surveillance d u Secteur Financier. Merrill Lynch
Investment Managers (Luxembourg) S.A. forms part of the
MLlM Group
8 hlerrill Lynch International
Investment Funds
Special Risk Considerations
Investors must read these Special Risk Considerations b e f o r e
investing i n any o f t h e Company's Funds.
This section contains explanations o f some o f t h e risks t h a t
apply t o t h e Funds. N o t all risks apply t o all Funds a n d t h e
f o l l o w i n g table sets o u t t h e risks that, in t h e o p i n i o n of t h e
Investment Manager, could have significant impact t o t h e
overall risk of t h e p o r t f o l i o . Investors should be a w a r e t h a t
o t h e r risks may also be relevant t o t h e Funds f r o m t i m e
t o time.
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10 Merrill Lynch International lnvertrrent Funds
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Merrill Lynch International Investment Funds 1 1
General
emerging markets may have a l o w level of regulation,
Therc can be n o assurance that the investment objectives of each
enforcement of regulations and monitoring of investors' activities.
Fund will be adiieved. Also, past performance is no guide t o future
Those activities may include practices such as trading o n material
performance. and the valuc of investments may go down as well as
non-public information by certain categories of nvestor.
up. Changes in rates of exchange between currencies may cause
the value of a Fund's investments t o diminish or increase.
The securities markets of developing countries are not as large as
the more established securities markets and have substantially
Emerging Markets
less trading volume, resulting in a lack of liquidity and high price
The following considerations, which apply t o some extent t o all
volatility. There may be a high concentration of market
international investmcnt, are o f particular significance in certain
capitalisation and trading volume in a small number o f issuers
smaller and emerging markets. Funds investing in equities (see
representing a limited number of industries as well as a high
"Investment Objectives & Policies" b e l o w ) may include
concentration of investors and financial intermediaries. These
investments in certain smaller a n d e m e r g i n g markets, w h i c h
factors may adversely affect the timing and pricing of a Fund's
are typically those of p o o r e r or less developed countries
acquisition or disposal of securities.
w h i c h e x h i b i t l o w e r levels of economic and/or capital
m a r k e t development, a n d h i g h e r levels of share price a n d
Practices in relation t o settlement of securities transactions in
currency volatility. The prospects for economic growth in a
emerging markets involve higher risks than those in developed
number of these markets arc considerable and equity returns
markets, in part because the Company will need t o use brokers
have the potential t o exceed those in mature markets as growth
and counterparties which are less well capitalised, and custody
is achieved. However, share price and currency volatility are
and registration of assets in some countries may be unreliable.
generally higher in emerging markets.
Delays in settlement could result in investment opportunities
Some governments exercise substantial influence over the private
security. The Custodian is responsible for the proper selection and
economic sector and the political and social uncertainties that exist
supervision of its correspondent banks in all relevant markets in
for many developing countries are particularly significant. Another
accordance with Luxembourg law and rcgulation.
being missed if a Fund is unable t o acquire or dispose of a
risk common t o most such countries is that the economy is heavily
export oriented and, accordingly, is dependent upon international
In certain emerging markets, registrars are not subject t o effective
trade. The existence of overburdened infrastructures and obsolete
government supervision nor are they always independent from
financial systems also presents risks in certain countries, as do
issucrs. The possibility of fraud, negligence, undue influence
environmental problems. Certain economies also dcpcnd t o a
being exerted by the issuer or refusal t o recoyriise ownership
significant degree upon exports of primary commodities and,
exists, which, along with other factors, could result in the
therefore, are vulnerable t o changes in commodity prices which, in
registration of a shareholding being completely lost. Investors
turn, may bc affected by a variety of factors.
should therefore be aware that the Funds concerned could suffer
loss arising from these registration problems, and as a result of
In adverse social and political circumstances, governments have
archaic legal systems a Fund may be unable t o make a successful
bccn involved in policies of expropriation, confiscatory taxation,
claim for compensation.
nationalisation, intervention in the securities market and trade
settlement, and irnposition of foreign investment restrictions and
While the factors described above may result in a generally higher
exchange controls, and these could be repeated in the future. In
level of risk with respect t o the individual smaller and emerging
addition t o withholding taxcs o n investment incomc, some
markets, these may be reduced when there is a low correlation
emerging rnarkets tnay impose different capital gains taxes on
between the activities of those markets and/or by the
foreign investors.
diversification of investments within the relevant Funds.
Gencrally accepted accounting, auditing and financial reporting
Investments in Russia are currently subject t o certain heightened
practices in emerging markets may be significantly different from
risks w i t h regard t o the ownership and custody of securities. In
those i r i developed mdrkets. Compared t o mature markets, some
Russia, this is evidenced by entries in the books of a company or
12 Merrill Lynch International Investment Funds
I
its registrar (which is neither an agent nor responsible to the
governmental entities. There is no bankruptcy proceeding by which
Custodian). No certificates representing ownership of Russian
Sovereign Debt on which a governmental entity has defaulted may
companies will be held by the Custodian or any correspondent or
be collected in whole or in part.
in an effective central depositary system. As a result of this system
on F o r e i g n Investment
and the lack o f state regulation and enforcement, the Company
Restrictions
could lose its registration and ownership of Russian securities
Some countries prohibit or impose substantial restrictions on
through fraud, negligence or even mere oversight.
investments by foreign entities such as a Fund. As illustrations,
certain countries require governmental approval prior t o
Any Fund investing directly in local Russian stock will limit its
investments by foreign persons, or limit the amount o f
exposure t o n o more than 10% of i t s Net Asset Value, except for
investment by foreign persons in a particular company, or limit
investment in sccurities listed on either the Russian Trading Stock
thc investmcnt by foreign persons in a company t o only a specific
Exchange or the Moscow Interbank Currency Exchange, which
class of securities which may have less advantageous terms than
have been recognised as being regulated markets.
securities o f the company available for purchase by nationals.
Certain countries may restrict investment opportunities in issuers
Sovereign Debt
or industries deemed important t o national interests. The manner
Certain developing countries are especially large debtors t o
in which foreign investors may invest in companies in certain
commercial banks and foreign governments. Investment in debt
countries, as well as limitations o n such investments, may have an
obligations ("Sovereign Debt") issued or guaranteed by developing
adverse impact on the operations o f a Fund. For example, a Fund
governments or their agencies and instrumentalities ("governmental
may be required in certain of such countries t o invest initially
entities") involves a high degree of risk. The governmental entity
through a local broker or other entity and then have the share
that controls the repayment of Sovereign Debt may not be able or
purchases re-registered in the name o f the Fund. Re-registration
willing t o repay the principal and/or interest when due in
may in some instances not be able t o occur o n a timely basis,
accordance with the terms of such debt.
A governmental entity5
resulting in a delay during which a Fund may be denied certain of
willingness or ability t o repay principal and interest duc in a timely
its rights as an investor, including rights as t o dividends or t o be
manner may be affected by, among other factors, its cash flow
made aware o f certain corporate actions. There also may be
situation, the extent of its foreign reserves, the availability of
instances where a Fund places a purchase order but is
sufficient foreign exchange on the date a payment is due, the
subsequently informed, at the time o f re-registration, that the
relative size of the debt service burden t o the economy as a whole,
permissible allocation t o foreign investors has been filled,
the governmental entity's policy towards the International Monetary
depriving the Fund o f the ability t o make its desired investment at
Fund and the political constraints t o which a governmental entity
thc time. Substantial limitations may exist in certain countries
may be subject. Governmental entities may also be dependent on
with respcct t o a Fund's ability t o repatriate investment income,
expected disbursements from foreign governments, multllateral
capital or the proceeds of sales of securities by foreign investors.
agencies and otiers abroad t o reduce principal and interest
A Fund could be adversely affected by delays in, or a refusal t o
arrearage on their debt. The commitment on the part of these
grant any required governmental approval for repatriation of
governments, agencies and others t o make such disbursements may
capital, as well as by the application t o the Fund o f any restriction
A number of countries have authorised the
be conditioned on a governmental entity's implementation of
on investments.
economic reforms and/or economic performance and the timely
formation of closed-end investment companies t o facilitate
service of such debtor's obligations. Failure t o implement such
indirect foreign investment in their capital markets. Shares of
reforms, achieve such levels of economic performance or repay
certain closed-end investment companies may at times be
principal or interest when due may result in the cancellation of such
acquired only at market prices representing premiums t o their net
third parties' commitments t o lend funds t o the governmental
asset values. If a Fund acquires shares in closed-end Investment
entity, which may further impair such debtor's ability or willingness
companies, shareholders would bear both their proportionate
t o service its debt on a timely basis. Consequently, governmental
share of expenses
entities may default on their Sovereign Debt. Holders of Sovereign
indircctly, the expenses of such closed end investment companies.
Debt, including a Fund, may be requested t o participate in the
A Fund also may seek. at its o w n cost, t o create its o w n
rescheduling of such debt and t o extend further loans t o
investment entities under the laws of certain countries.
iri
the Fund (including management fees) and,
Fixed Income Transferable Securities
Capital Securities
Debt securities are sublect t o both actual and perceived measures
Where the term "Capital Securities'' is used, it refers to
of creditworthiness The "downgrading" of a rated debt security
subordinated fixed income transferable securities within the
or adverse publicity and investor perception, which may not be
meaning of Section 2.1, Appendix A "Investment and Borrowing
based on fundamental analysis, could decrease the value and
Powers and Restrictions" that qualify for treatment as regulatory
liquidity of the security, pdrticularly in a thinly traded market.
capital by regulators
or are regarded by rating agencies as having
both debt and equity characteristics and includes. but
A Fund may be affected by changes in prevailing interest rates
is
not
limited to, finarcials.
and by credit quality considcrations. Changes in market rates of
interest will generally affect a Fund's asset values as the prices o f
Distressed Securities
fixed rate securities generally increase when interest rates decline
Investment in a security issued by a company that is either in
and decrease when interest rates rise. Prices of shorter-term
default or in high risk of default ("Distressed Securities") involves
securities generally fluctuate less in response t o interest rate
significant risk. Such investments will only be made when the
changes than d o longer-term securities.
Investment Adviser believes it is reasonably likely that the issuer of
the securities will make an exchange offer or will be the subject
An economic recession may adversely affect an issuer's financial
of a plan of reorganisation; however, there can be n o assurance
condition and the market value of high yield debt securities
that such an exchange offer will be made or that such a plan of
issued by such entity. The issuer's ability t o service its debt
reorganisation will be adopted or that any securities or other
obligations may be adversely affected by specific issuer
assets received in connection with such an exchange offer or plan
developments, or the issuer's inability t o meet specific prolected
of reorganisation will not have a lower value or income potential
business forecasts, or the unavailability of additional financing. In
than anticipated when the investment was made. In addition, a
the event of bankruptcy of an issuer, a Fund may experience
significant period of time may pass between the time at which
losses and incur costs.
the investment in Distressed Securities is made a i d the time that
any such exchange offer or plan of reorganisation is completed.
Investment Grade
During this period, it is unlikely that any interest payments on the
The term "investment grade" defines debt securities which are
Distressed Securities will be received, there will be significant
rated, at the time of purchase, BBB- (Standard and Poor's or
uncertainty as t o whether or not the exchange offer or plan of
equivalent rating) or better by at least one recognised rating
reorganisation will be completed, and there may be a
agency, or, in the opinion of the Investment Manager, are of
requirement to bear certain expenses t o protect the investing
comparable quality.
Fund's interest in the course of negotiations surrounding any
potential exchange or plan of reorganisation. In addition, as a
Non-Investment Grade
result of participatiori in negotiations with respect to any
The terms "non-investment grdde" or "high yield" define debt
exchange offer or plan of reorganisation with respect t o an issuer
securities which are unrated or rated, at the time of purchase,
of Distressed Securities, the inverting Fund may be precluded
BB+ (Standard and Poor's or equivalent rating) or lower by at least
from disposing of such securities. Furthermore, constraints o n
one recognised rating agency or, in the opinion of the Investment
investment decisions and actions w i t h respect t o Distressed
Manager, are of comparable quality.
Securities due t o tax considerations may affect the return realised
o n the Distressed Securities.
Non-investment grade debt may be highly leveraged and carry a
greater risk of default. In addition. non-investment grade
Some Funds may invest in securities of issuers that are
securities tend t o be more volatile than higher rated fixed-income
encountering a variety of financial
or earnings problems and
securities, so that adverse economic events may have a greater
represent distinct types of risks. A Fund's investments in equity or
impact o n the prices of non-investment grade debt securities
fixed income transferable securities o f companies or institutions
than on higher rated fixed-income securities.
in weak financial condition may include issuers with substantial
capital needs or negative net worth or issuers that are, have been
or may become, involved in bankruptcy or reorganisation
proceedings.
14 Verrill Lynch International Investment Funds
Smaller Capitalisation Companies
Compctition bctwccn technology companies is intense, and
Securities of smaller capitalisation companies may, from time t o
profit margins can be small or non-existent. In fact, many
time, and especially in falling markets, become illiquid and
technology companies operate at substantial losses with n o
experience short-term price volatility and wide spreads between b:d
prospect for profit in the foreseeable future. For these reasons,
and offer prices. Investment in smaller capitalisation companies
investment in such companies by a Fund may be considered
may involve higher risk than investment in larger companies.
speculative.
The securities of smaller companics may be subject t o more
With regard t o Funds that invest in asset-based securities, while
abrupt or erratic market movements than larger, more established
the market price for an asset-based security and the related
companies or t i e market average in general. These companies
natural resource asset generally are expected t o move in the same
may have limited product lines, markets or financial resources, or
direction, there may not be perfect correlation in the t w o price
they may be dependent on a limited management group. Full
movements Asset-based securities may not be secured by a
development of those companies takes time. In addition, many
security interest in or claim on the underlying natural resource
small company stocks trade less frequently and in smaller volume,
asset The asset-based securities in which a Fund may invest may
and may be subject to more abrupt or erratic price movements
bear interest or pay preferred dividends at below market rates
than stocks of large companies. The securitics of small companies
and, in some instances, may not bear interest or pay preferred
may also be more sensitive t o market changes than the securities
dividends at all
of large companies. These factors may result in above-average
fluctuations in the Net Asset Value of a Fund's Shares.
Certain asset-based securities may be payable at maturity in cash at
the stated principal amount or, at the option of the holder, directly
Funds investing in specific sectors o r technologies
Investment
is
made in a limited number o f market sectors and
therefore these Funds may be more volatile than other more
in a stated amount of the asset t o which it is related. In such
instance, a Fund would endeavour t o sell the asset-based security
in the secondary market prior t o maturity if the value of the stated
diversified Funds and may be subject t o rapid cyclical changes in
amount of the asset exceeds the stated principal amount and
investor activity. In particular, certain Funds may have exposure t o
thereby redlise the appreciation in the underlying asset
technology stocks. Investments in securities o f technology related
companies present certain risks that may not exist t o the same
A Fund investing in financial services companies is more
degree as in other types of investments and tend t o bc rclatively
vulnerable t o price fluctuations of financial services companies
more volatile. Technology-related investments may iriclude smaller
and other factors that particularly affect financial services
and less seasored companies. Sucti companies may have limited
industries than a more broadly diversified mutual fund. In
product lines, markets, or financial resources, or may depend on
particular, the prices of stock issued by many financial services
a limited management group. The companies in which the Fund;
companies have historically been more closely correlated with
concerned may invest are also strongly affcctcd by worldwide
changes in interest rates than other stocks. Generally, when
scientific or technological developments, and their products may
interest rates go up, stock prices of these companies go down.
rapidly fall into obsolescence.
This relationship may not continue in the future.
The share price gains of many companies involved in the
Delayed Delivery Transactions
alternative energy and energy technology sectors in thc recent
Funds that invest in fixed income transferable securities may
past have been significantly greater than those experienced by
purchase "To Be Announced" securities ("TBAs"). This refers t o
equity markets as a whole. Consequently, the shares o f many
t h c common trading practice in the mortgage-backed securities
alternative energy and energy technology focused companies are
market in which a security is t o be bought from a mortgage pool
n o w valued, using certain valuation criteria, at a substantial
(Ginnie Mae, Fannie Mae or Freddie Mac) for a fixed price at a
premium to the average for equity markets in general. There can
future date. A t the time of purchase the exact security is not
be n o assurance or guarantee that current valuations o f
known, but the main characteristics of it are specified. Although
alternative energy and energy technology focused companies are
the price has been established at the time of purchase, the
sustainable.
principal value has not been finalised. Purchasing a TBA involves a
risk of loss if the value of the security t o be purchased declines
other malor currencies. The use of hedging strategies may
prior t o the settlement date. Risks may also arise upon entering
substantially limit shareholders in the relevant Hedged Share Class
into these contracts from the potential inability o f counterparties
from benefiting if the Hedge Share Class currency falls against
t o meet the terms of their contracts.
the currency or currencies in which the assets of the relevant
Funds are invested. All gains/losses from hedging transactions are
Although the Funds will generally enter into TBA purchase
borne separately by the shareholders of the respective Hedged
commitments with the intention of acquiring securities, the Funds
Share Classes.
may also dispose of a commitment prior t o settlement if it is
- General
deemed appropriate t o d o so. Proceeds of TBA sales are not
Derivatives
received until the contractual settlement date. During the time a
In accordance with the investment limits and restrictions set out
TBA sale commitment is outstanding, equivalent deliverable
in Appendix A, each of the Funds may use derivatives t o hedge
securities, or an offsetting TBA purchase commitment (deliverable
market and currency risk, and for the purposes of efficient
on or before the sale commitment date), are held as cover for the
portfolio management.
transaction.
The use of derivatives may expose Funds t o a higher degree of
If the TEA sale commitment is closed through the acquisition of
risk. In particular, derivative contracts can be highly volatile, and
an offsetting purchase commitment, the Fund realises a gain or
the amount of initial margin is generally small relative to the size
loss on the cornmitment without regard t o any unrealised gain or
of the contract so that transactions are geared. A relatively small
loss o n the underlying security. If the Fund delivers securities
market movement may have a potentially larger impact on
under the commitment, the Fund realises a gain or loss from the
derivatives than on standard bonds or equities.
sale of the securities upon the unit price established at the date
the commitment was entered into.
Derivatives - Bond, M i x e d Funds a n d certain Equity Funds
In addition t o the above, the Funds may use derivatives t o
H e d g e d Share Classes
facilitate more complex efficient portfolio management
With regard t o any Hedged Share Classes that may be available, it
techniques. In particular this may involve:
should be noted that the hedging strategies employed by the
Fund or its authorised agent will not completely eliminate the
Using swap contracts to adjust interest rate risk;
exposure o f the Hedged Share Classes t o movements in other
Using currency derivatives t o buy or sell currency risk;
currencies While the Fund or its authorised agent may attempt t o
Using credit default swaps t o buy or sell crecit risk;
hedge currency risks, there can be no guarantee that it will be
successful in doing so The hedging strategies adopted may result
The use of credit default swaps carries a higher risk than investing
in mismatches between the currency position o f the Fund and the
in bonds directly A credit default swap allows the transfer of
Hedged Share Class
default risk This allows investors t o effectively buy insurance on a
The objective of these strategies is t o mitigate major sources of
bond they d o not physically o w n in the expectation that the
currency risk, while taking account uf practical considerations
credit will decline in quality. One party, the protection buyer,
including transaction costs. The hedging strategies applied will
makes a stream of payments t o the seller of protection, and a
bond they hold (hedging the investment) or buy protection on a
vary dependent upon whether a Fund is invested primarily in one
payment is due t o the buyer in the event that there is a "credit
currency or whether it invests in multiple currencies. Funds
event" (a decline in credit quality, which will be pre-defined in the
invested in one currency will apply a hedging strategy which aims
agreement) If the credit event does not occur the buyer pays all
t o reduce the risk of currency movements between the Base
the required premiums and the swap terminates on maturity with
Currency and the currency of the Hedged Share Class by hedging
n o further payments The risk of the buyer is therefore limited t o
the Net Asset Value of the Fund in the currency o f the Hedged
the value of the premiums paid
Share Class. Funds invested in multiple currencies will apply a
hedging strategy which aims to reduce the risk of currency
The market for credit default swaps may sometimes be more
movements between the currency of the Hedged Share Class and
illiquid than bond markets. A Fund entering into credit default
16 Weirill Lynch International Investwent Funds
swaps must at all times be able t o meet the redemption requests.
levy a redemption charge o f 2% o f the redemption proceeds
Credit default swaps are valued on a regular basis according t o
t o shareholders whom the Directors, in their reasonable
verifiable and transparent valuation methods reviewed by the
opinion, suspect of excessive trading. This charge will be
Company’s auditor.
made for the benefit of the Funds, and affected shareholders
will be warned in advance if such a fee is likely t o be charged.
Excessive Trading Policy
The Funds d o not knowingly allow investments that are
Investment Objectives & Policies
associated with excessive trading practices, as such practices may
Investors must read the Special Risk Considerations section
adversely affect the interests of all shareholders. Excessive trading
above b e f o r e investing in any of the following Funds.
includes individuals or groups of individuals whose securities
There can be no assurance that the objectives of each Fund
transactions seem t o follow a timing pattern or are characterised
will be achieved.
by excessively frequent or large trades.
Each Fund is managed separately and in accordance w i t h the
Investors should, however, be aware that the Funds may be
investment and borrowing restrictions specified in Appendix A .
utilised by certain investors for asset allocation purposes or by
Unless defined otherwise in the individual investment policies o f
structured product providers, which may require the periodic re-
the Funds, the following definitions, investment rules and
allocation o f assets between Funds. This activity will not normally
restrictions apply t o all Funds of the Company:
be classed as excessive trading unless the activity becomes, in the
opinion o f the Directors, t o o frequent or appears t o follow a
Where an individual investment policy of a Fund refers t o
timing pattern.
70% of its total net assets being invested in a specific type or
As well as the general power o f Directors t o refuse subscriptions
assets may be invested in financial instruments o f companies
or conversions at their discretion, powers exist in other sections o f
or issuers of any size in any sector o f the economy globally,
range of investments, the remaining 30% of the total net
this Prospectus t o ensure that shareholder interests are protected
unless the individual investment policy of such Fund contains
against excess ve trading. These include:
further restrictions. Where an individual investment policy o f
a Bond Fund refers t o 70% of its total net assets being
fair value pricing -Appendix B paragraph 15;
invested in a specific type of investments, such Bond Fund
price swinging -Appendix 6 paragraph 16(c);
may, within the remaining 30% o f its total net assets, invest
in-specie redemptions - Appendix B paragraphs 22-23; and
u p t o 30% of its total net assets in money market
conversion charges - Appendix B paragraphs 18-20.
instruments, up t o 25% of its total net assets in convertible
bonds and bonds with warrants attached and u p t o 10% o f
In addition, where excessive trading is suspected, the Funds may:
its total net assets in equities.
combine Shares that are under common ownership or control
Where an investment policy requires a particular percentage
for the purposes of ascertaining whether an individual or a
t o be invested in a specific type or range of investments, such
group of individuals can be deemed t o be involved in
requirement will only apply under normal market conditions
excessive trading practices. Accordingly, the Directors reserve
and is subject to liquidity and/or market risk hedging
the right t o reject any application for switching and/or
considerations arising from the issuance, switching or
subscription of Shares from investors w h o m they consider t o
redemption of Shares.
be excessive traders;
adjust the Net Asset Value per Share t o reflect more
Funds may hold cash and near-cash instruments o n an
accurately the fair value of the Funds’ investments at the
incidental basis.
point o f valuation. This will only take place if the Directors
believe that movements in the market price of underlying
Funds may use derivative instruments (including those on
securities mean that in their opinion, the interests of all
foreign exchange) as provided for in Appendix A.
shareholders will be met by a fair price valuation; and
Unless specifically stated t o the contrary, t h e currency
exposure o f the Funds will normally be left unhedged.
securities of issuers domiciled in, or exercising the predominant
part of their economic activity in, designated ”Asian Tiger
Countries”. These countries include South Korea, the People’s
Where the term ”Europe” is used, it refers t o all European
Republic of China, Taiwan, Hong Kong, the Philippines, Thailand,
countries including the UK, Eastern Europe and former Soviet
Malaysia, Singapore, Vietnam, Cambodia, Laos, Myanmar and
Union countries.
Indonesia. The Fund may invest in high yield fixed income
transferable securities. The Fund may also invest in fixed income
Where the term “Greater China” is used, it refers t o the
transferable securities that are the subject of bankruptcy
People’s Republic of China, Hong Kong and Taiwan.
proceedings or otherwise in payment default or in significant risk
Funds investing globally or in Europe (including the BRlC
exposure of the Fund is flexibly managed.
of being in payment default at the time of purchase. The currency
Fund) may contain investments in Russia, subject always t o
the 10% limit referred t o in the “Emerging Markets” section
The BRlCFundseeks t o maximise total return expressed in US
above except for investment in securities listed on either the
dollars. The Fund invests at least 70% of its total net assets in the
Russian Trading Stock Exchange or the Moscow Interbank
equity securities of companies domiciled in, or exercising the
Currency Exchange, which have been recognised as being
predominant part of their economic activity in, Brazil, Russia,
regulated markets.
India or Greater China.
For the purpose o f these investment objectives and policies all
The Conservative A l l o c a t i o n Fund (Euro) follows an asset
references t o ”transferable securities” shall include ”money
allocation policy, w i t h the principal objective of managing
market instruments and both fixed and floating rate
volatility o f capital value, subject t o which the Fund seeks t o
instruments”.
maximise total return expressed in euro. The Fund invests globally
in fixed income transferable securities (which may include some
Where a Fund invests in initial public offerings or new debt
high yield fixed income transferable securities) and may also
issues, the prices of securities involved in initial public
invest t o a lesser extent in equities. Total return may be derived
offerings or new debt issues are often subject t o greater and
from either capital or income. The Fund may invest without
more unpredictable price changes than more established
limitation in securities denominated in currencies other than the
securities.
reference currency (euro). The currency exposure o f the Fund is
flexibly managed.
Funds which include “Absolute Returns” in their title seek t o
achieve positive returns, however, this should not be
The Conservative A l l o c a t i o n F u n d (US Dollar) follows an asset
interpreted t o mean or imply that an absolute return is
allocation policy, w i t h the principal objective of managing
guaranteed, as there can be circumstances where negative
volatility o f capital value, subject t o which the Fund seeks t o
returns are generated
maximise total return expressed in US dollars. The Fund invests
globally in fixed income transferable securities (which may include
The Asian Dragon Fundseeks t o maxirnise total return
some high yield fixed income transferable securities) and may also
expressed in US dollars. The Fund invests at least 70% of its total
invest t o a lesser extent in equities. Total return may be derived
net assets in the equity securities o f companies domiciled in, or
from either capital or income. The Fund may invest without
exercising the predominant part of their economic activity in,
developing markets located in Asia. The Fund will not invest in
reference currency (US dollars). The currency exposure of the
Japan.
Fund is flexibly managed.
The Asian Tiger B o n d Fundseeks t o maximise total return
The C o n t i n e n t a l E u r o p e a n G r o w t h Fundseeks t o maximise
expressed in US dollars. The Fund invests at least 90% o f its total
total return expressed in euro. The Fund invests at least 70% of
net assets in fixed income transferable securities, and at least
its total net assets in the equity securities of companies domiciled
7096 of its total net assets in the fixed income transferable
in, or exercising the predominant part of their economic activity
in Europe, excluding the UK. The Fund places particular emphasis
fixed income transferable securities denominated in currencies
on companies that, in t h e opinion o f the Investment Adviser,
other than US dollars. Currency exposure is flexibly managed.
exhibit growth investment characteristics, such as sustainable
organic t o p line growth and high or improving returns o n capital.
The E m e r g i n g M a r k e t s Fundseeks to maximise total return
expressed in US dollars. The Fund invests globally at least 70% o f
The Corporate B o n d Fund (Euro) seeks t o maximise total return
expressed in euro. The Fund invests globally at least 90% o f its
in, or exercising the predominant part of their economic activity
total net assets in investment grade fixed income transferable
in, developing markets. Investment may also b e made in the
securities. A t least 70% o f the Fund’s total net assets are invested
in corporate debt. The Fund may invest without limitation in fixed
predominant part of their economic activity in, developed
income transferable securities denominated in currencies other
markets that have significant business operations in these
than the reference currency (euro) although any currency
developing markets.
exposure is normally hedged back into euro.
The E u r o B o n d Fundseeks t o maximise total return expressed in
With effect from 31 July 2006, the name of the Corporate Bond
euro. The Fund invests at least 90% o f its total net assets in
Fund (Euro) and its investment policy and objective will be as
investment grade fixed income transferable securities. A t least
follows:
70% of the Fund’s total Net Assets are invested in Fixed Income
transferable securities denominated in euro. Most currency
The E u r o Corporate B o n d Fundseeks t o maximise total return
exposure is normally hedged back i n t o euro.
expressed in euro. The Fund invests at least 70% of its total net
assets in investment grade corporate fixed income transferable
With effect from 29 May 2006, the investment policy and
securities denominated in euro. Currency exposure is flexibly
objective of the Euro Bond Fund will be as follows:
managed,
The E u r o B o n d Fundseeks t o maximise total return expressed in
The E m e r g i n g Europe Fundseeks t o maximise total return
euro. The Fund invests at least 80% of its total net assets in
investment grade fixed income transferable securities. A t least
assets in the equity securities of companies domiciled in, or
70% of total net assets will be invested in fixed income
transferable securities denominated in euro. Currency exposure is
developing European countries. It may also invest in companies
flexibly managed.
domiciled in and around, or exercising the predominant part o f
their economic activity in and around, the Mediterranean region.
The Euro-Markets F u n d seeks t o rnaximise total return
The E m e r g i n g M a r k e t s Bond Fundseeks t o maximise total
assets in the equity securities of companies domiciled in those EU
return expressed in US dollars. The Fund invests at least 90% o f
Member States participating in EMU. It may also invest in those
its total net assets in fixed income transferable securities, and at
EU Member States that, in the opinion of the Investment Adviser,
least 70% o f its total net assets in the fixed income transferable
are likely t o join EMU in the foreseeable future and in companies
securities of governments, agencies and companies domiciled in,
based elsewhere that exercise the predominant part of their
or exercising the predominant part o f their economic activity in,
economic activity in EMU - participating countries.
developing markets. The Fund may invest in both sub-investment
grade and investment grade fixed income transferable securities.
The Fund may also invest in fixed income transferable securities
objective of the Euro-Markets Fund will be as follows:
that are the subject of bankruptcy proceedings or otherwise in
payment default or in significant risk of being in payment default.
The Euro-Markets Fundseeks t o maximise total return
This will normally be o n a limited basis and will not exceed 20%
expressed in euro. The Fund invests at least 70% o f its total net
of total net assets at t h e time of purchase. The Fund may invest in
assets in the equity securities of companies domiciled in those EU
Member States participating in EMU. Other exposure may
include, without limitation, investments in those EU Member
transferable securities denominated in euro and euro cash. The
States that, in the opinion of the Investment Adviser, are likely t o
Fund is managed so that the average remaining maturity o f the
join EMU in the foreseeable future and companies based
Fund’s assets will at n o time exceed 12 months.
elsewhere that exercise the predominant part o f their economic
activity in EMU-participating countries.
The G l o b a l A l l o c a t i o n Fundseeks t o maximise total return
expressed in US dollars. The Fund invests globally in equity, debt
The E u r o p e a n fundseeks t o maximise total return expressed in
and short term securities, of b o t h corporate and governmental
euro. The Fund invests at least 70% of its total net assets in the
issuers, w i t h no prescribed limits. In normal market conditions the
equity securities of companles domiciled in, or exercising the
Fund will invest at least 70% o f its total net assets in the
Predominant part of their economic activity in, Europe.
securities of corporate and governmental issuers. The Fund
The E u r o p e a n Focus Fundseeks t o maximise total return
the Investment Adviser, undervalued. The Fund may also invest in
expressed in euro. The fund invests at least 70% o f its total net
the equity securities of small and emerging growth companies.
generally will seek t o invest in securities that are, in the opinion of
assets in a concentrated portfolio of equity securities o f
The Fund may also invest a portion of its debt portfolio in high
companies domiciled in, or exercising the predominant part of
yield fixed income transferable securities. Currency exposure is
their economic activity in, Europe.
flexibly managed.
The E u r o p e a n G r o w t h fundseeks t o maximise total return
The G l o b a l B o n d fund (Euro) seeks t o maximise total return
expressed in euro. The Fund invests globally at least 90% of its
total net assets in fixed income transferable securities and at least
exercising the predominant part o f their economic activities in,
70% of its total net assets in investment grade fixed income
Europe. The Fund places particular emphasis on companies that,
transferable securities that are issued or explicitly guaranteed by a
in the opinion of the Investment Adviser, exhibit growth
national government. The Fund may invest without limitation in
investment characteristics, such as sustainable organic t o p line
fixed income transferable securities denominated in currencies
growth and high or improving returns o n capital.
other than the reference currency (euro), although most currency
exposure is normally hedged back into euro.
The E u r o p e a n O p p o r t u n i t i e s fundseeks t o maximise total
return expressed in euro. The Fund invests at least 70% of its
The G l o b a l B o n d Fund (US Dollar) seeks t o maximise total
total net assets in the equity securities o f smaller capitalisation
return expressed in US dollars. The Fund invests globally at least
90% of its total net assets in fixed income transferable securities,
their economic activity in, Europe. Smaller capitalisation
and at least 70% o f its total net assets in investment grade fixed
companies are those whose market capitalisation is similar t o the
income transferable securities that are issued or explicitly
market capitalisation of companies in the Citigroup EM1 European
guaranteed by a national government. The Fund may invest
Index at the time of the Fund‘s investment.
without limitation in fixed income transferable securities
The E u r o p e a n Value F u n d seeks t o maximise total return
dollars), although most currency exposure is normally hedged
back into US dollars.
denominated in currencies other than the reference currency (US
The G l o b a l C a p i t a l Securities A b s o l u t e R e t u r n fund seeks t o
Europe. The Fund places particular emphasis o n companies that
achieve an absolute return in euro. The Fund invests at least 90%
are, in the opinion of the Investment Adviser, undervalued and
of its total net assets in investment grade fixed income
therefore represent intrinsic investment value.
transferable securities. A t least 70% of the Fund’s total net assets
are invested in Capital Securities that are issued globally. The
The E u r o Reserve f u n d a i m s t o balance growth w i t h security of
average duration o f the Fund is not normally more than 2 years.
capital and high liquidity expressed in euro. The Fund invests at
The Fund may invest without limitation in fixed income
least 90% of its total net assets in investment grade fixed income
transferable securities denominated in currencies other than the
20 Merrill Lynch International investment Funds
reference currency (euro). Currency exposure is flexibly managed,
net assets in the equity securities of Companies domiciled in, or
although at least 90% of total net assets will be exposed t o euro.
exercising the predominant part of their economic activity, in
developed markets. The Fund places particular emphasis o n
The G l o b a l Dynamic E q u i t y Fundseeks t o maximise total return
expressed in
US dollars. The Fund invests globally, w i t h
no
prescribed country or regional limits, at least 70% o f its total net
companies that, in the opinion of the Investment Adviser, exhibit
growth investment characteristics, such as sustainable organic top
line growth and high or improving returns on capital.
assets in equity securities. The Fund will generally seek t o invest in
securities that are, in the opinion of the Investment Adviser,
The G l o b a l High Yield B o n d Fund (Euro) seeks t o maximise total
undervalued. The Fund may also invest in the equity securities of
return expressed in euro, a significant portion of which may be
small and emerging growth companies, Currency exposure is
derived from income. The Fund invests globally at least 90% of its
flexibly managed.
total net assets in fixed income transferable securities, and at least
70% of its total net assets in high yield fixed income transferable
The G l o b a l Equity Core Fundseeks t o maximise total return
securities. The Fund may invest in fixed income transferable
expressed in US dollars. The Fund invests globally at least 70% of
securities that are the subject of bankruptcy proceedings or
otherwise in payment default or in significant risk of being in
in, or exercising the predominant part o f their economic activity,
payment default at the time of purchase. The Fund may invest
in developed markets. The Fund adopts a core approach, which
without limitation in fixed income transferable securities
under normal market conditions will result in the Fund having in
denominated in currencies other than the reference currency (euro),
excess of 70 holdings.
although any currency exposure is normally hedged back into euro.
The G l o b a l Equity D i v e r s i f i e d Fundseeks t o maximise total
The G l o b a l O p p o r t u n i t i e s F u n d seeks t o maximise total return
return expressed in US dollars. The Fund invests globally at least
70% of its total net assets in the equity securities of companies
its total net assets in the equity securities of smaller capitalisation
domiciled in, or exercising the predominant part o f their
companies. Smaller capitalisation companies are those whose
economic activity in, developed markets. The Fund adopts a
market capitalisation is similar t o the market capitalisation of
diversified approach which under normal market conditions will
companies in the Citigroup EM1 Global Index at the time of the
result in the Fund having in excess of 100 holdings.
Fund's investment. The Fund's geographic portfolio weighting is
closely in line with that of its benchmark index.
The G l o b a l Focus Fundseeks t o maximise total return expressed
in US dollars. The Fund invests globally in a concentrated
The G l o b a l Smallcap Fundseeks t o rnaxirnise total return
portfolio of equity securities w i t h at least 70% of its total net
assets invested in companies domiciled in, or exercising the
its total net assets in the equity securities of smaller capitalisation
predominant part of their economic activity in, developed
companies. Smaller capitalisation companies are those whose
markets.
market capitalisation is similar t o the market capitalisation o f
companies in the MSCI World Small Cap Index at the time of the
The G l o b a l F u n d a m e n t a l Value Fundseeks t o maximise total
return expressed in
US dollars.
The Fund invests globally at least
Fund's investment. Although it is likely that most of the Fund's
investments will be in companies located in the developed
70% of its total net assets in the equity securities o f companies
markets of North America, Europe and the Far East, the Fund may
domiciled in, or exercising the predominant part of their
also invest in the developing markets of the world. Currency
economic activity in, developed markets. The Fund places
exposure is flexibly managed.
particular emphasis on companies that are, in the opinion o f the
Investment Adviser, undervalued and therefore represent intrinsic
The Greater China fundseeks t o maximise total return
investment valJe.
The G l o b a l G r o w t h f u n d s e e k s t o maximise total return
Greater China.
The I n d i a Fundseeks t o maximise total return expressed in US
opinion of the Investment Adviser, undervalued and therefore
represent intrinsic investment value.
predominant part of their economic activity in, India. (In normal
market conditions the Fund will invest exclusively via the Subsidiary).
objective of the Japan Value Fund will be as follows:
The J a p a n Fundseeks t o maximise total return expressed in US
The Japan Value Fundseeks t o maximise total return expressed
in yen. The Fund invests at least 70% of its total net assets in the
equity securities
of companies domiciled in, or exercising the
predominant part of their economic activity in, Japan.
predominant part of their economic activity in Japan. The Fund
of the Investment Adviser, undervalued and therefore represent
objective of the Japan Fund will be as follows:
intrinsic investment value.
The Japan Fundseeks t o maximise total return expressed in yen.
The L a t i n A m e r i c a n Fundseeks t o maximise total return
The Fund invests at least 70% of its total net assets in the equity
places particular emphasis on companies that are, in the opinion
securities o f companies domiciled in, or exercising the
net assets in the equity securities of companies domiciled in, or
predominant part o f their economic activity in, Japan.
The lapan O p p o r t u n i t i e s Fundseeks t o maximise total return
South America and the Spanish speaking islands of the
expressed in US dollars The Fund invests at least 70% of its total
Caribbean, including Puerto Rico.
Latin America. Latin America includes Mexico, Central America,
net assets in the equity securities of smaller capitalisation
companies domiciled in, or exercising the predominant part o f
The New Energy Fundseeks t o maximise total return expressed
their economic activity in, Japan. Smaller capitalisation companies
in US dollars. The Fund invests globally at least 70% of its total
are those whose market capitalisation
IS
similar t o the market
net assets in the equity securities of companies whose
capitalisation of companies in the Citigroup EM1 Japan Index at
predominant economic activity is in the alternative energy and
the time of the Fund's investment
energy technology sectors. Emphasis may be given to renewable
energy, automotive and on-site power generation, energy storage
and enabling energy technologies.
objective of the Japan Opportunities Fund will be as follows:
The Pacific E q u i t y Fund seeks t o maximise total return expressed
US dollars. The Fund invests at least 70%
The Japan O p p o r t u n i t i e s Fundseeks t o maximise total return
in
expressed in yen. The Fund invests at least 70% o f its total net
in the equity securities o f companies domiciled in, or exercising
assets in the equity securities of smaller capitalisation companies
the predominant part of their economic activity in, Pacific Basin
domiciled in, or exercising the predominant part of their
and Australasian countries. Currency exposure is flexibly
economic activity in, Japan. Smaller capitalisation companies are
managed.
o f its total net assets
those whose market capitalisation is similar t o the market
capitalisation of companies in the Citigroup EM1 Japan Index at
the time of the Fund's investment.
The Shoft D u r a t i o n B o n d F u n d (Euro) seeks t o maximise total
return expressed in euro. The Fund invests at least 90% of its
The lapan Value Fundseeks t o maximise total return expressed
securities. A t least 70% of the Fund's total net assets are invested
in US dollars. The Fund invests at least 70% of its total net assets
in fixed income transferable securities with a duration of less than
in the equity securities of companies domiciled in, or exercising
five years. The average duration is not normally more than three
the predominant part of their economic activity in Japan. The
years. A t least 70% of the Fund's total net assets will be invested
Fund places particular emphasis on companies that are, in the
in fixed income transferable securities issued by entities within
those EU Member States participating in EMU. The Fund may
22 Merrill Lynch international Investment Funds
invest without limitation in fixed income transferable securities
The US Basic Value Fundseeks t o maximise total return
denominated in currencies other than the reference currency
(euro), although most currency exposure is normally hedged back
into euro.
exercising the predominant part o f their economic activity in, the
US. The Fund places particular emphasis o n companies that are,
The S t e r l i n g Reserve Fundaims t o balance growth w i t h security
in the opinion of the Investment Adviser, undervalued and
of capital and high liquidity expressed in sterling. The Fund invests
therefore represent basic investment value.
at least 90% of its total net assets in investment grade fixed
The US Dollar Core B o n d Fundseeks t o maximise total return
income transferable securities denominated in sterling and
sterling cash. The Fund is managed so that the average remaining
expressed in US dollars, a significant portion o f which may be
maturity of the Fund’s assets will at n o time exceed 12 months.
derived from income. The Fund invests at least 90% of its total
The Strategic A l l o c a t i o n Fund (Euro) follows an asset
securities. A t least 70% o f the Fund’s total net assets are invested
net assets in investment grade fixed income transferable
allocation policy that seeks t o maximise total return expressed in
in fixed income transferable securities denominated in US dollars.
euro The Fund invests globally in equities and fixed income
Currency exposure is flexibly managed.
transferable securities (which may include some high yield fixed
US Dollar High Yield B o n d Fundseeks t o maximise total
income transferable securities). The Fund may invest without
The
return expressed in US dollars. The Fund invests at least 90% of
reference currency (euro). The currency exposure of the Fund
is
flexibly managed.
its total net assets in fixed income transferable securities. At least
70% of the Fund’s total net assets are invested in high yield fixed
income transferable securities denominated in US dollars. The
The Strategic A l l o c a t i o n Fund (US Dollar) follows an asset
Fund may invest in fixed income transferable securities that are
allocation policy that seeks t o maximise total return expressed in
the subject of bankruptcy proceedings or otherwise in payment
US dollars. The Fund invests globally in equities and fixed income
default or in significant risk of being in payment default at the
transferable securities (which may include some high yield fixed
time of purchase. Most currency exposure is normally hedged
income transferable securities). The Fund may invest without
back into US dollars.
reference currency (US dollars). The currency exposure of the
The US Dollar Low D u r a t i o n B o n d Fundseeks t o maximise
Fund is flexibly managed.
total return expressed in US dollars. The Fund invests at least
90% o f its total net assets in investment grade fixed income
The ThailandFundseeks t o maximise total return expressed in
transferable securities. A t least 70% of the Fund’s total net assets
US dollars. The Fund invests at least 70% o f its total net assets in
are invested in fixed income transferable securities denominated
the equity securities of companies domiciled in, or exercising the
in US dollars with a duration o f less than five years. The average
predominant part of their economic activity in, Thailand.
duration is not normally more than three years. Currency
The UK Focus Fundseeks t o maximise total return expressed in
sterling. The F m d invests in a concentrated portfolio of equity
The US Dollar Reserve Fund aims t o balance growth w i t h
securities with at least 70% o f its total net assets invested in
security of capital and high liquidity expressed in US dollars. The
companies doTiciled in or exercising the predominant part of
Fund invests at least 90% of its total net assets in investment
their economic activity in the UK.
grade fixed income transferable securities denominated in US
dollars and US dollar cash. The Fund is managed so that the
The U n i t e d Kingdom Fundseeks t o maximise total return
average remaining maturity o f the Fund’s assets will at n o time
expressed in sterling. The Fund invests at least 70% of its total
exceed 12 months.
US Flexible Equity Fundseeks t o maxirnise total return
exercising the predominant part o f their economic activity in,
The
the UK.
Merrill Lvnch International Investment Funds 23
net assets in the equity securities o f smaller capitalisation
exercising the predominant part o f their economic activity in, the
companies domiciled in,
or exercising the
predorrinant part of
US. The Fund normally invests in securities that, in the opinion of
their economic activity in, the US. Smaller capitalisation
the Investment Adviser, exhibit either growth or value investment
characteristics, placing an emphasis as the market outlook warrants.
market capitalisation o f companies in the Russell 2000 or the S&P
The US Focused Value Fundseeks t o maximise tota! return
Fund places particular emphasis on companies that are, in the
opinion of the Investment Adviser, undervalued.
SrnallCap 600 at the time of the Fund's initial investment. The
exercising the predominant part of their economic activity in, the
The World B o n d Fundseeks t o maximise total return expressed
US. The Fund places particular emphasis on companies that are,
in US dollars. The Fund invests at least 90% of its total net assets
in the opinion of the Investment Adviser, undervalued relative t o
in fixed income transferable securities, and at least 70% of its
its assessment of their current or prospective condition or relative
t o prevailing market ratios.
securities. Currency exposure is flexibly managed.
The US G o v e r n m e n t M o r t g a g e Fundseeks a high level o f
The W o r l d Energy Fundseeks t o maximise total return
income expressed in US dollars. The Fund invests at least 90% of
its total net assets in fixed income transferable securities. A t least
its total net assets in the equity securities of companies whose
80% of the Fund's total net assets are invested in fixed income
predominant economic activity is in the exploration,
transferable securities issued or guaranteed by the United States
development, production and distribution of energy. Additionally,
Government, its agencies or instrumentalities, including
the Fund may invest in companies seeking to develop and exploit
Government National Mortgage Association ("GNMA")
new energy technologies.
mortgage-backed certificates and other
US Government securities
representing ownership interests in mortgage pools, such as
The World Financials Fundseeks t o maximise total return
mortgage-backed securities issued by Fannie Mae and Freddie
Mac. All securities in which the Fund invests are US dollar-
denominated securities.
predominant economic activity is financial services.
The US G r o w t h Fundseeks t o maximise total return expressed in
The World Gold Fundseeks t o maximise total return expressed in
US dollars. The Fund invests at least 70% of its total net assets in
US dollars. The Fund invests globally
the equity securities o f companies domiciled in, or exercising the
assets in the equity securities of companies whose predominant
at least 70% of its total net
predominant part of their economic activity in, the US. The Fund
economic activity is gold-mining. It may also invest in the equity
places particular emphasis on companies that have exhibited
securities o f companies whose predominant economic activity is
above-average growth rates in earnings.
other precious metal or mineral and base metal or mineral mining.
The Fund does not hold physical gold or metal.
The US O p p o r t u n i t i e s Fundseeks t o maximise total return
expressed in
US dollars. The Fund invests at least 70% of its total
The World Healthscience Fundseeks t o maximise total return
net assets in the equity securities of smaller capitalisation
their economic activity in, the US. Smaller capitalisation
predominant economic activity is in healthcare, pharmaceuticals,
medical technology and supplies and the development o f
market capitalisation o f companies in the Russell 2000 Growth
biotechnology.
Index at the time of the Fund's investment.
The W o r l d lncome Fundseeks to maximise total return
The US SmallCap Value Fundseeks t o maximise total return
expressed in US Dollars, a significant portion o f which may be
derived from income. The Fund invests globally at least 30% of its
I
total net assets in fixed income transferable securities
Classes and Form of Shares
denominated in a variety o f currencies. In normal market
Shares in the Funds are divided into Class A, Class B, Class C,
conditions, the Fund will invest in securities denominated in at
Class D, Class E, Class J, Class Q and Class X Shares, representing
least three different currencies w i t h n o set portion of the Fund's
eight different charging structures Shares are further divided into
investments required t o be denominated in any single currency.
Dlstributing and Non-Distributing Share classes Non-Distributing
The Fund's average maturity will be less than 1 5 years. The Fund
Shares d o not pay dividends, whereas Distributing Shares pay
may also invest in fixed-income securities that are below
dividends. See 'Dividends' o n page 30 for further information
investment grade. Currency exposure is flexibly managed.
Class A Shares
With effect from 29 May 2006, the investment objective and
Class A Shares are available t o all investors as Distributing and
policy of the World Income Fund will be as follows:
Non-Distributing Shares and are issued in registered form
("Registered Shares") and global certificate form ("Global
The World I n c o m e Fundseeks t o maximise total return
expressed in
US dollars, a significant portion of which
may be
Certificates"). Unless otherwise requested, all Class A Shares will
be issued as Registered Shares.
derived from income. The Fund invests globally at least 90% o f its
total net assets in fixed income transferable securities
Class B Shares
denominated in a variety of currencies. In normal market
Class B Shares are available as Distributing and Non-Distributing
conditions, the Fund will invest in securities denominated in at
Shares t o clients of Merrill Lynch (which provides nominee
least three different currencies w i t h n o set portion of the Fund's
facilities t o investors) and t o other investors at the discretion of
investments required t o be denominated in any single currency.
the Investment Manager. Class B Shares are available as
The Fund's average maturity will be less than 15 years. The Fund
Registered Shares only.
may invest in fixed-income securities that are below investment
grade and in the securities of emerging market issuers. Currency
Class C Shares
Class C Shares are available as Distributing and Non-Distributing
Shares t o clients of Merrill Lynch (which provides nominee
The World Mining Fundseeks t o maximise total return
facilities t o investors) and t o other investors at the discretion of
the Investment Manager. Class C Shares are available as
its total net assets in the equity securities of mining and metals
Registered Shares only.
companies whose predominant economic activity is the
production o f base metals and industrial minerals such as iron ore
Class D Shares
and coal. The Fund may also hold the equity securities of
Class D Shares are available as Distributing and Non-Distributing
companies whose predominant economic activity is in gold or
Shares and are issued as Registered Shares only. Unless otherwise
other precious metal or mineral mining. The Fund does not hold
requested, all Class D Shares will be issued as Registered Shares.
physical gold or metal.
They are only available at the Investment Manager's discretion.
The World Technology Fundseeks t o maximise total return
Class E Shares
Class E Shares are available in certain countries, subject to the
relevant regulatory approval, through specific distributors selected
predominant economic activity is in the technology sector.
by the Investment Manager (details of which may be obtained
from the Transfer Agent or the Investor Service Centre). They are
New Funds or Share Classes
available as Non-Distributing and Distributing Shares, Registered
The Directors may create new Funds or issue further Classes of
Shares and Global Certificates for all Funds. Unless otherwise
Shares. This Prospectus will be supplemented t o refer t o these
requested, all Class E Shares will be issued as Registered Shares.
n e w Funds or Classes.
Merrill Lynch International Investment Funds 2 5
Class J Shares
Global Certificates are available under a registered common
Class J Shares are initially only offered t o fund of funds in Japan
and will not be publicly offered
in
Japan However, they may be
offered t o other funds of funds in the future, at the discretion of
global certificate arrangement operated with Clearstream
International and Euroclear. Global Certificates are registered in
the Company's share register in the name of Clearstream
the Investment Manager Class J Shares are available as
International and Euroclear's common depository Physical share
Distributing and Non-Distributing Shares No fees are payable in
certificates are not issued in respect of Global Certificates Global
respect of Class J Shares (instead a fee will be pald to the
Certificates may be exchanged for Registered Shares under
Investment Manager or affiliates under an agreement) Class J
arrangements between Clearstream International, Euroclear and
shareholders bear all expenses along w i t h other shareholders pro
the Central Paying Agent
rata t o the Funds' respective Net Asset Values
Bearer Shares (which were available prior t o 1 February 2002)
Class Q Shares
may be exchanged for Class A Registered Shares or Global
Class Q Shares are a grandfathered Share Class available t o
Certificates without charge and bearer Share certificates and
investors previously holding shares in other funds sponsored by
coupons (if any) must be surrendered upon a request for
entities within the ML Group. Within the Company they are n o
redemption or conversion.
longer available for subscription or conversion into. Class Q
shareholders w h o wish t o convert into another of the Company's
Information o n Global Certificates and their dealing procedures is
Funds may d o so free of charge and will receive Class B Shares.
available o n request from the Transfer Agent or the Investor
Further, any CDSC history will be carried over into the new Fund.
Service Centre.
Merrill Lynch at its sole discretion may refuse any request t o
transfer record of ownership of Class Q Shares held by or through
Dealing in Fund Shares
Merrill Lynch.
Daily D e a l i n g
Class X Shares
redemption and conversion of Shares should be received by the
Class X Shares are available as Non-Distributing Shares and
Transfer Agent or the Investor Service Centre before 12 noon
Dealings can normally be effected daily. Orders for subscription,
Distributing Shares;and are issued as Registered Shares only at
Luxembourg time o n any Dealing Day and the prices applied will
the discretion of the Investment Adviser and its affiliates. No fees
be those calculated in the afternoon of that day. Any dealing
are payable in respect of Class X Shares (instead a fee will be paid
orders received by the Transfer Agent or the Investor Service
t o the Investment Adviser or affiliates under an agreement). Class
Centre after 12 noon Luxembourg time o n a Dealing Day will be
X shareholders bear all expenses along w i t h all other shareholders
dealt w i t h on the next Dealing Day. A t the discretion of the
pro rata t o the Funds' respective Net Asset Values.
Company, prices applied t o orders backed by uncleared funds may
be those calculated in the afternoon of the day following receipt
Class X Shares are only available t o institutional investors within
of cleared funds. Further details and exceptions are described
the meaning of Article 129 of the law of 2 0 December 2002 o n
under the sections entitled "Application for Shares", "Redemption
undertakings for collective investment, as amended. Investors
of Shares" and "Conversion of Shares" below. Once given,
must demonstrate that they qualify as institutional investors by
applications t o subscribe and instructions t o redeem or convert are
providing the Company and its Transfer Agent or the Investor
irrevocable except in the case of suspension or deferral (see
Service Centre with sufficient evidence.
paragraphs 2 8 to 31 of Appendix B) and cancellation requests
received before 12 noon Luxembourg time. Dealing orders placed
General
by telephone will be recorded. Redemption and conversion orders
Investors purchasing any Class o f Shares through a distributor will
for bearer Shares (where available) must be in writing.
be subject t o the distributor's normal account opening
requirements. Title t o Registered Shares is evidenced by entries in
Orders placed through distributors rather than directly w i t h the
the Company's Share register. Shareholders will receive
Transfer Agent or the Investor Service Centre may be subject t o
confirmation notes of their transactions. Registered Share
different procedures which may delay receipt by the Transfer
certificates are not issued.
Agent or the Investor Service Centre. Investors should consult
Class E. Class C a n d Class Q Shares
their distributor before placing orders in any Fund.
Class B, Class C and Class Q Shares may normally be acquired or
redcemcd at their respective Net Asset Values. No charge is
or
Where shareholders subscribe for or redeem Shares having a
added t o or included in the price payable on acquisition
specific value, the number of Shares dealt in as a result of
redemption but, with the exception o f Reserve Fund Shares, a
dividing the specific value by the applicable Net Asset Value per
CDSC, where applicable, will be deducted from the proceeds of
Share is rounded t o t w o decimal places. Such rounding may result
redemption as described under "Fees, Charges and Expenses" on
page 32 and in paragraph 17 o f Appendix 6. Prices may include
in a benefit t o the Fund or the shareholder.
or have added t o them, as appropriate, (i) a distribution fee; and
Shareholders should note that the board of Directors may
(it), in limited circumstances, adlustments t o reflect fiscal charges
determine t o restrict the purchase o f Shares when it is in the
and dealing costs (see paragraph 16(c) o f Appendix B).
interests of the Company and/or its shareholders t o d o so,
including when the Company or any Fund reaches a size that
could impact the ability t o find suitable investments
for the
The specific levels of fees and charges that apply t o each Class of
Share are explained in more detail under "Fees, Charges and
Company and Fund
Expenses" on pages 32 to 33 and in Appendices B, C and E.
General
Application for Shares
Confirmatior notes, cheques and other documents sent by post
Applications
will be at the risk of the investor.
Merrill Lynch clients may enter their application orders through
their Merrill Lynch Financial Advisers. In all other cases, initial
Prices of Shares
applications for Shares must be made to the Transfer Agent or
All prices are determined after the deadline for receipt of dealing
the Investor Service Centre on the application form. For initial
orders 12 noon Luxembourg time o n the Dealing Day concerned.
applications for Shares by fax or telephone, applicants will be sent
Prices are quoted in the Dealing Currency(ies) of the relevant
an application form that must be completed and returned by mail
Fund as shown on page 2. In the case of those Funds for which
t o the Transfer Agent or the Investor Service Centre t o confirm
t w o or more Dealing Currencies are available, if an investor does
the application. Failure t o provide the original application form
not specify his choice o f Dealing Currency at the time o f dealing
will delay the completion of the transaction and consequently the
then the Base Currency of the relevant Fund will be used.
ability t o effect subsequent dealings in the Shares concerned.
The previous Dealing Day's prices for Shares may be obtained
fax or telephone. Investors w h o d o not specify a Share Class in
during business hours from the Investor Service Centre. They will
the application will be deemed t o have requested Class A Non-
also be published in such countries as required under applicable
Distributing Shares.
Subsequent applications for Shares may be made in writing or by
law and at the discretion of the Directors in a number of
newspapers worldwide The Company cannot accept any
Applications for Registered Shares should be made for Shares
responsibility for error or delay in the publication or non-
having a specified value and fractions of Shares will be issued
publication of prices. Historic dealing prices for all Sharcs are
where appropriate. Global Certificates will be issued in whole
available from the Fund Accountant or the Investor Service Centre
Shares only.
Class A, Class D, Class E, Class J a n d Class X Shares
Thc right is reserved t o reject any application for Shares or t o
Class A, Class D, Class E, Class J and Class X Shares may normally
accept any application in part only. In addition, issues of Shares of
be acquired or redeemed at their Net Asset Value. Prices may
any or all Funds may be suspended, and a subscription
include or have added t o them, as appropriate. (I) an initial
constituting over 5% of a Fund's value may not be accepted, as
charge; (11)a clistribution fee, and (iii) in limited circumstances,
described in paragraphs 28 and 32 of Appendix B, respectively.
adjustments t o reflect fiscal charges and dealing costs (sec
paragraph 16(c) of Appendix
B).
The investor acknowledges that personal information and
information relating t o its investments supplied t o a member of
Merrill Lvnch international Investment Funds 27
of any Class of Shares
the ML Group may be processed by or transferred t o or disclosed
The minimum initial subscription in respect
t o any company in the ML Group world-wide in order t o
of a Fund is currently USS5,OOO (except for Class D Shares where
adrriinister the services for which the investor has apphed or may
the minimum is
apply in the future.
the relevant Dealing Currency. The minimum for additions t o
This may involve the transfer of data by electronic media
the approximate equivalent. These minima may be varied for any
USBlO
million) or the approximate equivalent in
existing holdings of any Class of Shares of a Fund is US$l,OOO or
including the internet The investor's information will be held in
particular case or distributor or generally. Details of the current
confidence and not shared other than as described without the
minima are available from the Transfer Agent or the Investor
investor's permission or as required by applicable law The
Service Centre.
investor may at any time request information about the
companies in the ML Group and the countries in which they
Money L a u n d e r i n g Prevention
operate The investor consents t o its information being processed,
As a result o f anti-money laundering regulation, additional
transferred or disclosed within the ML Group The investor may at
documentation may be required for subscriptions for Shares. The
any timc request a copy of the information held about it and
circumstances under which it is required and the precise
request any errors t o be corrected Should the investor wish t o
requirements are set out in the notes o n the application form.
enloy protection in respect of its personal data under
This information will be used t o verify the identity o f investors or,
Luxembourg law it should make its application direct t o the
in some cases, the status o f financial advisers; it will be used only
Transfer Agent
for compliance w i t h these requirements. Please note that the
Transfer Agent or the Investor Service Centre reserve the right in
Settlement
all cases to request further documentation or information. Failure
For all Shares, settlement in cleared funds must be made within
t o provide documentation may result in the withholding of
three Business Days o f the relevant Dealing Day. If timely
redemption proceeds. If you have any questions regarding the
settlement is n o t made (or a completed application form is not
identification documentation required, you should contact the
received for an initial subscription) the relevant allotment of
Investor Service Centre or the Transfer Agent.
Shares may be cancelled and an applicant may be required to
compensate the relevant distributor and/or the Company (see
Redemption of Shares
paragraph 2 5 of Appendix 6 ) .
Applications t o Redeem
Mcrrill Lynch clients may enter their redemption orders through
Payment instructions are sumrnarised at the back o f this
Prospectus. Whenever payment
is
t o be made by cheque, dealing
their Merrill Lynch Financial Advisers. In all other cases,
instructions for the redemption of Registered Shares should
may be delayed until cleared funds have been received, therefore
normally be given by completing the form that accompanies
payment by telegraphic transfer is strongly recommended. Cash,
confirmation notes and is available from the Transfer Agent or
endorsed cheques or travellers cheques will not be accepted.
the Investor Service Centre. They may also be given to the
Transfer Agent or the Investor Service Centre in writing, or by fax
Settlement should normally be made in the Dealing Currency for
or telephone followed in each case by confirmatio? in writing
the relevant Fund or, if there are t w o or more Dealing Currencies
sent by mail t o the Transfer Agent or the Investor Service Centre.
for the relevant Fund (see page 2), in the one specified by the
Failure t o provide written confirmations may delay settlement of
investor. An investor may, by prior arrangement w i t h the Transfer
the transaction (see also paragraph 25 of Appendix B). Written
Agent or the Investor Service Centre, provide the Transfer Agent
redemption requests (or written confirmations of such requests)
with any other freely convertible currency and the Transfer Agent
must include the full name($ and address of the holders, the
will arrange the necessary currency exchange transaction. Any
name of the Fund, the Class (including whether it is the
such currency exchange will be effected at the investor's cost.
Distributing or Non-Distributing Share class), the value or number
of Shares t o be redeemed and full settlement instrxtions and
Minimum Subscription
must be signed by all holders. Redemptions of bearer Shares will
be effected only upon receipt of the relevant certificates.
28 Merrill Lynch International Investwent Funos
Redemptions may be suspended or deferred as described in
addition, a conversion between Shares held in different funds will
paragraphs 28 t o 31 of Appendix E.
give rise t o an immediate tax charge.
Settlement
As tax laws differ widely from country t o country, shareholders
Subject t o paragraph 21 of Appendix B, redemption payments
should consult their tax advisers as t o the tax implications of such
will normally be despatched in the relevant Dealing Currency
a conversion in their individual circumstances. Shareholders w h o
within three Business Days of the relevant Dealing Day, provided
participate in the Merrill Lynch Global Funds Advisor (“MLGFA”)
that the relevant documents (as described above and any
service may be able t o use their Class 6 Shares, Distributing and
applicable money laundering prevention information) have bccn
Non-Distributing. t o fund their participation. If they d o this, their
received. On written request t o the Transfer Agent or the Investor
Class B Shares will be converted for Class A Distributing or Class
Service Centre, payment may be made in such other currency as
A Non-Distributing Shares, as appropriate. No conversion fee and
may be freely purchased by the Transfer Agent with the relevant
no CDSC or initial charge will be levied by the Fund on such
Dealing Currency and such currency exchange will be effected at
conversions. Such a conversion may be a taxable event.
the shareholder’s cost.
Shareholders participating in the MLGFA service should, however,
inform themselves of any fees payable under this service.
Redemption payments for Shares are norrnally made by
telegraphic transfer t o the shareholder’s bank account at the
With the exception of Class Q Shares t o Class B Shares (see
shareholder’s cost. If bank account details are not available,
”Classes and Form of Shares” above) and, at the Investment
payment will be made by cheque, made payable t o the registered
Adviser’s discretion and provided always that the investor is an
shareholder(s) and sent t o the registered address For
institutional investor, conversion from any Class of Shares t o Class
redemptions of bearer Shares, payment will be in accorddnce
X Shares and any other conversions from Shares of one Class of a
w i t h settlement instructions received.
Fund t o Shares of another Class of either the same or a different
Fund (for example, conversions of Class A Shares into Class B
Details of redemptions in specie are set out in paragraphs 22 and
Shares) are not permitted
23 of Appendix B.
For holders of all Classes of Shares, there is normally n o
Conversion of Shares
conversion charge by the Investment Manager. However,
Switching Between Funds and Share Classes
conversion charges may apply in some circumstances
Investors may make conversions of their shareholdings between
paragraphs 18 t o 20 of Appendix 6 .
- see
the same Class of Shares of the various Funds and thereby alter
the balance of their portfolios t o reflect changing market
conditions
Instructions to Convert
Instructions for the conversion o f Registered Shares should
normally bc givcn by completing the appropriate form that
Shareholders may also convert between Distributing and Non-
accompanies confirmation notes and is available from the
Distributing Shares of the same Class or between hcdgcd and un-
Transfer Agent or the Investor Service Centre. They may also be
hedged Shares of the same Class (where available). However,
given by fax or telephone or in writing t o the Transfer Agent or
converting between Distributing (M) Shares and Distributing ( 0 )
the lnvcstor Service Centre. Conversion instructions must include
Shares (as defined in the Dividend Section on page 30) is not
the full name($ and address of the holder($, the name of the
permitted
Fund, the Class (including whether it is the Distributing or NonDistributing Share class), the value or number of Shares t o be
In addition, shareholders may convert between any Class of UK
convertcd and the Fund t o be converted into (and the choice o f
Distributor Status Shares in the relevant currency and the
Dealing Currency of the Fund where more than one is available)
equivalent class o f Distributing Shares in non-distributor status
and whether or not they are UK Distributor Status Shares.
currencies. Such conversions may be a taxable event in the hands
of investors a i d may give rise t o an immediate tax charge. In
Where the Funds to which a conversion relates have different
Dealing Currencies, currency will be converted at the relevant rate
Merrill Lynch internationalInvestment Funds 29
o f exchange o n the Dealing Day o n which the conversion is
Annually on the Equity Distributing Funds, at the discretion of
effected.
the Directors. UK Distributor Status Equity Funds will pay an
annual dividend, if there is income t o distribute.
Conversions may be suspended or deferred and an order for
conversion into a Fund constituting over 5% of a Fund's value
Distributing Shares w i t h alternative payrnent frequencies may be
may not be accepted, as described in paragraphs 28 and 32 of
introduced at the Directors' discretion. Confirmation o f additional
Appendix B, respectively
distribution frequencies and the date of their availability can be
obtained from the Company's registered office and the Investor
However, n o conversions are allowed either into or out of the
Service Centre. An updated list of available Distributing Shares
Funds that are only registered in Luxembourg, Germany and
will be included in the next version of the Prospectus.
Switzerland, as indicated on page 2 .
Calculation of Dividends
Exchange Privilege through Merrill Lynch
Those Distributing Shares which pay dividends monthly are
Merrill Lynch allows investors w h o have acquired Shares through
further divided into Shares as follows:
it t o exchange their Shares for shares with a similar charging
structure of certain other funds, provided that Merrill Lynch
Those Shares for which dividends are calculated monthly are
believes that an exchange is permitted under applicable Idw and
known as Distributing (M) Shares.
regulations Details of this exchange privilege can be obtained
Those Shares for which dividends are calculated daily are
from financial advisors or any regional Investor Service Centre
known as Distributing (D) Shares.
Minimum Dealing & Holding Sizes
Investors may choose t o hold either Distributing (M) Shares or
The Company may refuse t o comply w i t h redemption, conversion
Distributing (D) Shares but may not hold both.
or transfer instructions if they are given in respect o f part o f a
holding in the relevant Class of Shares which has a value of less
than
US$l,OOO or the approximate equivalent
in the relevant
Dealing Currency or if t o d o so would result in such a holding of
less than US$S,OOO (or approximate equivalent) in value These
minima may be varied for any particular case or distributor or
generally Details of any variations t o the current minima shown
above are available from the Transfer Agent or the Investor
Service Centre.
Dividends
D i v i d e n d Policy
The Directors' current policy is t o retain and reinvest all net
income except for income from the Distributing Funds and
income from the UK Distributor Status Funds where the policy is
t o distribute substantially all the investment income for the period
after deduction of expenses.
For those Funds which offer Distributing Shares, the frequency at
which the dividend payment is made is determined by the Fund
type, with dividends normally paid as follows:
Monthly on the Bond Distributing Funds where there is
income t o distribute.
30
Distributing Shares w i t h annual dividend payment are known as
Distributing (A) Shares.
The calculation method for each type is described below:
Distributing (M)
The dividend is calculated monthly based upon income accrued during the dividend period less expenses
The dividend is distributed to shareholders based upon the number of Shares held a t t h e month end
Distributing (D)
The dividend IS calculated daily based upon daily-accrued income less expenses, for the number of Shares
outstandlng on that day
A cumulative monthly dividend is then distributed to shareholders based upon the number of Shares held and the
number of days f o r which they were held during t h e period. Holders of Distributing (D) Shares shall be entitled to
dividends from t h e date of subscription to t h e date of redemption.
\
Dfstributing(A)
The dividend is calculated annually based upon income accrued during t h e dividend period !ess expenses
The dividend is distributed to shareholders based upon the number of Shares held a t t h e end of t h e annual period
Declaration, P a y m e n t of Reinvestment of Dividend
The chart below describes t h e declaration and payment of
dividends and the reinvestment options available to shareholders
Distributing Shares (D)
Distributing Shares (M)
Distributiny Shares (A)
Distributing Shares
DS(W
Distrinuting Shares
WA)
10 Business Days of declaration to
shareholders holding Shares during the
period following the previous declaration.
Last Business Day of
each calendar month
in the Dealing
Currencyiies) of the
Within
relevant
Within 10 Business Ddyr of aeclaration to
shareholders registered in the share
register on the Business Day prior to the
declaration date.
each fiscal year in the
' Dealing Currency(ies)
of the relevant Fund.
each calendar month
each fiscal year
Within 10 Business Days of the last
Businers Day of each fiscal year
Dividends of $US 100 or
more (or currency
equivalent) are paid
directly to the
shareholder's bank
account by telegraphic
transfer in the
shareholder's chosen
dealing currency at the
shareholder's cost
(except Merrill Lynch
investors)
Dividends of less thin $US t 00 (or
currency equivalent) will ne
automatically reinvested in further
Shares of the same form 0
' the
same Class of the same Fund,
unless the shareholder requests
othewise. Such further Shares.
including fractions. will be issued
within 10 Business Days of the
aeclaration date (except Merrill
Lynch investors)
2
Within 10 Business Day, o' declaration to
shareholders registered in the s h ~ r e
register on the Business Day prior to the
declaration date.5
All dividends are paid
Dividends will not be
directly to the
shareholder's bank
account by telegraphic
transfer (except ML
automatically reinvested Where
investors)
investors would like the
dirtribution amount to be
reinvested in further Shares oi the
same form of the same Ctass '
0
the same Fund, this can be
arranged through the Transfer
~
Agent
Declarations and payment of dividends are announced in the
Luxemburger Wort in Luxembourg.
No initial charge o r CDSC is made on Class A, Class B o r Class Q
Distributing Shares, respectively, issued by w a y of dividend
reinvestment.
It should be borne in mind t h a t re-invested dividends are likely to
b e treated fo- tax purposes in most jurisdictions as income
received by the shareholder.
Merrill Lynch International investment Funds 31
Please see A p p e n d i x E f o r a summary of fees and charges.
Relevant H o l d i n g Period
CDSC
Up t o one year
4.0%
Over one year and u p t o t w o years
3.0%
Further information on fees, charges and expenses is given in
Over two years and u p t o three years
2.0%
paragraphs 19 t o 24 of Appendix C, and the following
Over three years and u p t o four years
1.O%
information must be read in conjunction w i t h those paragraphs.
Over four years
CDSC
Zero
of 1 % will be deducted from redemption proceeds and
M a n a g e m e n t Fees
paid o n redemption o f all Class C Shares o f all Funds (except in
The Investment Manager receives the management fees from the
the case of Reserve Funds) unless the Shares are held for more
Company as shown in Appendix E. The level o f management fee
than a year.
varies according t o which Fund the investor buys and, with the
exception o f some Class Q Shares, is the same for all Classes of
Further information on the CDSC is contained in paragraph 17 o f
Shares within each Fund. These fees accrue daily, are based on
Appendix B.
the Net Asset Value of the relevant Fund and are paid monthly.
The Investment Manager pays certain costs and fees out of the
Conversion Charges
management fee, including the fees of the Investment Advisers
Conversion charges may be applied by selected distributors, o n
and the Investor Service Centre.
conversion from a Reserve Fund into another of the Company's
D i s t r i b u t i o n Fees
20 of Appendix B for further details
Funds, or o n unduly frequent conversions See paragraphs 18 to
The Principdl Distributor receives annual distribution fees as shown
in Appendix E. These fees accrue daily, are based on the Net Asset
R e d e m p t i o n Charges
Value of the relevant Fund (reflecting, when applicable, any
A redemption charge of 2% of the redemption proceeds can be
adjustment t o the Net Asset Value of the relevant Fund, as
charged t o a shareholder at the discretion of the D rectors where
described in paragraph 16(c) of Appendix B) and are paid monthly.
the Directors, in their reasonable opinion, suspect that
shareholder of excessive trading as described under Section
Other Fees
"Excessive Trading Policy" o n page 17 of this Prospectus This
The Company also pays the fees of the Custodian, the Transfer
charge will be made for the benefit of the Funds, and
Agent, the Fund Accountant and the Paying Agents.
shareholders will be warned in advance if it i s likely t o be
Initial Charge
conversion charge or deferred sales charge.
charged This charge will be in addition t o any app icable
On application for Shares an initial charge, payable t o the
Investment Manager, of up t o 5% may be added t o the price o f
General
Class A Shares (except in the case o f the Reserve Funds). An initial
Over time, the differcnt charging structures summarised above
charge o f u p to 3 % may be added t o the price of some Class E
may result in Shares of different Classes of the same Fund, which
Shares and 2 % on the Class D Shares (see Appendix E for details)
were bought at the same time, producing different investment
subject t o terms available from relevant distributors
returns. In this context investors may also wish t o consider the
services provided by their distributor in relation t o their Shares.
D e f e r r e d Sales Charge
A CDSC will be deducted from redemption proceeds and paid o n
The Investment Manager may rebate all of or part of its fees and
redemption o f all Class B and Class Q Shares of all Funds (except
charges t o distributors as described in paragraph 22 of Appendix C,
in the case of Reserve Funds) unless the Shares are held for more
than four years. For shorter holding periods, the table below sets
Expenses
out the maximum rate of the CDSC that will apply, which is a
The Company pays certain expenses of the Management
percentage of the lower of the original purchase price or of the
Company, the Paying Agents, the Fund Accountant, the
redemption price of the Class B or Class Q Shares redeemed
Custodian, the Principal Distributor, the Transfer Agent and the
Investment Manager and other distributors and agents, and
32 Merrill Lynch International Investwent Funos
expenses incurred in operating the Investor Service Centre. The
assessment is subject t o interpretations on the status of an
Company pays all other expenses incurred in its operation (see
institutional investor by any competent authorities as will exist
paragraphs 19 to 24 of Appendix C) including fees and expenses
from time t o time Any reclassification made by an authority as t o
of the Directors (see paragraph 7 of Appendix C) and exchange
the status of an investor may submit all Class X Shares t o a tax of
costs arising from the calculation of the dealing prices in the
0 05%
additional Dealing Currencies (such exchange costs being met by
Shareholders are not subject t o any capital gains, income,
the relevant Fund)
withholding, gift, estate, inheritance or other tax in Luxembourg
A l l o c a t i o n o f Fees a n d Expenses
(except for shareholders domiciled, resident or having d
Each Fund I S charged w i t h all fees and expenses specifically
permanent establishment in Luxembourg a n d except for certain
attributable t o it. If a fee or an expense is attributable solely t3 a
former residents of Luxembourg if they o w n more than 10% of
particular Class of Shares of a Fund, then these will be borne by
the Shares of the Company).
Shares of that Class only. Other expenses are allocated between
the Funds on an equitable basis, normally pro rata t o their
United Kingdom
respective Net Asset Values. Fees and expenses are normally
The Company is not resident in the UK for tax purposes and it is
charged first against investment income. A shareholder w h o
the intention of the Directors t o continue t o conduct the affairs
makes a subscription or a redemption of Shares through the
of the Company so that it does n o t become resident in t h e UK.
Paying Agent or other entities responsible for processing Share
Accordingly it should not be subject t o UK taxation. Shares in the
transactions may be charged with the expenses linked t o the
Company other than the UK Distributor Status Shares will not
qualify as shares in a distributing fund for UK tax purposes, with
activity carried out by such entities in Italy.
the result that any gain realised by a UK resident shareholder on
Taxation
disposal of Shares will be an ‘offshore income gain’ subject t o tax
The following summary is based o n current law and practice,
as income. UK residents will bc subject t o income tax on any
which is subiect t o change.
dividends received in respect o f such shares in the Company.
Investors should i n f o r m themselves of, a n d w h e n
a p p r o p r i a t e consult t h e i r professional advisers
on, t h e
Dividends received by taxpayers from the Company will,
possible t a x consequences o f subscribing for, buying,
dependent on personal circumstances, be subject t o income tax.
holding, redeeming, c o n v e r t i n g or selling shares u n d e r t h e
The attention of individuals ordinarily resident in the UK is drawn
laws of t h e i r c o u n t r y of citizenship, residence or domicile.
t o sections 739 and 740 of the 1988 Act which contains
Investors should n o t e t h a t t h e levels a n d bases of, a n d r e l i e f
provisions for preventing avoidance of income tax by transactions
from, t a x a t i o n can change.
resulting in the transfer of income t o persons (including
companies) abroad and may rendcr them liable t o taxation in
respect of undistributed income and profits o f the Company.
Luxembourg
Under present Luxembourg law and practice, the Company
is
not
liable t o any Luxembourg income or capital gains tax, nor are
The provisions of s l 3 TCGA 1992 may apply t o a holding in the
dividends paid by the Company subject to any Luxembourg
Company. Where 50% of the Shares in a Fund are held by five or
withholding tax However, the Company is liable t o a tax in
fewer participators, then any UK person who holds more than 10%
Luxembourg 3f 0 05% per annum or, in the case of the Reserve
of the Shares may be taxed upon his proportion of the chargeable
Funds and Class X Shares, 0 01 % per annum of its Net Asset Value,
gain realised by the Fund as calculated for UK tax purposes.
payable quarterly on the basis of the value of the net assets of the
respective Funds at the end of the relevant calendar quarter No
On the death of a UK resident and domiciled individual
stamp or other tax is payable in Luxembourg on the issue of Shares
sharcholder, the shareholder’s estate (excluding the UK Distributor
Status Share Classes) will be liable to pay income tax on any
The benefit of the 0.01 % tax rate is available t o Class X Sharcs
accrucd gain. Inheritance tax may be due o n the value of the
o n the basis of Luxembourg legal, regulatory and tax provisions
holding after deduction of income tax and subject t o any
as known t o the Company a t the date of this Prospectus and a t
available inheritance tax exemptions.
the time of admission of subsequent investors However, such
Merrill Lynch internationalInvestment Funds 33
A UK corporate shareholder may be sublcct t o UK taxation in
Generally
relation t o its holdings in the Fund. It may be required t o apply a
Dividends and interest received by the Company on its
mark t o market basis in respect of its shareholding in accordance
investments are generally subject t o irrecoverable withholding
with the Finance Act 1996 and any increases or decreases in
taxes in the countries of origin
value of the Shares may be taken into account as receipts or
deductions for corporation tax purposes.
Investors should inform themselves of, and when appropriate
consult their professional advisers on, the possible tax
UK D i s t r i b u t o r Status
consequences o f subscribing for, buying, holding, redeeming,
Thc Directors currently intend t o apply in respect of each account
converting or selling Shares under the laws o f their country of
period for certification of the UK Distributor Status Shares in the
citizenship, residence or domicile. Investors should note that the
United Kingdom as a distributing share class for United Kingdom
levels and bases of, and reliefs from, taxation can change.
tax purposes. However, n o guarantee can be given that such
certification will be obtained.
In accordance w i t h the provisions of the European Union Savings
Directive ("EUSD") which came into force on 1 July 2005, EU
The changes t o the offshore funds legislation in the Finance Act
countries will be required t o apply either exchange information or
2004 allow separate sub-funds or share classes to qualify on their
withholding tax on certain interest payments t o EU resident
o w n for UK Distributor Status whilst having non-qualifying sub-
individuals and potentially t o residents of dependent territories. A
funds or share classes within the same fund. It is currently
further option allowing an EU resident shareholder t o submit an
intended that the Company will apply for certification of the UK
exemption ccrtification is also available. Although exchange
Distributor Status sterling denominated Class A Shares under the
information is the ultimate objective of the EUSD, Luxembourg,
Offshore Funds legislation contained in the Income and
Belgium and Austria and certain dependent or associated
Corporation Taxes Act 1988 (the "1988 Act"). Provided such
territories of EU Membcr States (such as Jersey, Guernsey and the
of
certification is obtained, shareholders w h o are UK taxpayers ( i k .
Isle o f Man) have opted t o apply withholding tax during a
resident or ordinarily resident in the UK for tax purposes) will
transitional period. Undcr these arrangements withholding tax
(unlcss regarded as trading in securities) have any gain realised
will apply when a Luxembourg paying agent makes distributions
upon disposal or convcrsion of the Company's Share treated as a
from and redemptions of shares in certain funds and where the
capital gain which will be subject to UK capital gains tax.
beneficiary of these proceeds is an individual residing in another
Otherwise any such yair would be treated as income subject t o
Member State. However, an individual may specifically request t o
income tax. (In the case of individuals domiciled for UK tax
be brought within the EUSD exchange of information regime
purposes outside the UK any gain will in either case be subject t o
which would result in no withholding tax being applied but
tax only t o the extent that the gain was, or was deemed t o be,
instead information regarding the distribution or redemption
remitted to the UK).
being provided t o the fiscal authority in the country in which he is
With a vicw to qualifying for certification, it is intended that the
money debts.
resident. Broadly, the funds affected will be those which invest in
Company will currently make distributions on the UK Distributor
Status Sterling Denominated Class A Shares as are required for
Meetings and Reports
this purpose by the 1988 Act. However, if HM Revenue &
Meetings
Customs were t o determine that the gains realised by this type of
The annual general meeting of shareholders of the Company is
Share upon the disposal of investments were of a revenue rather
held in Luxembourg at 11 a.m (Luxembourg time) o n 20 June
than a capital nature, on the basis that the Company was
each year (or if such day is not a Business Day in Luxembourg, o n
carrying on a trade of dealing in securities, this type of Share
the next following Business Day in Luxembourg). Other gcnerdl
would not qualify for certification since it does not normally
meetings of shareholders will be held at such times and places as
intend t o distribute such gains. The Company will not apply for
are indicated in the notices of such meetings Notices are sent t o
Certification of any other share classes, or dealing currencies,
registcred shareholders and published in accordance w i t h
under the 1988 Act.
Luxembourg law by publication in the Luxemburger Wort arid
34 Merrill ILynch International Investment Funos
(when legally required) the Recueil des Societes et Associations d u
Memorial in Luxembourg.
Reports
Financial periods of the Company end on 31 December each year.
The annual report containing the audited financial accounts of the
Company and of each of the Funds in respect of the preceding
financial period is available within four months of the relevant
year-end. An unaudited interim report is available within t w o
months of the end of the relevant half-year. Copies of all reports
are available upon request at the registered office of the Company
and from the Investor Service Centre. Registered shareholders will
be sent a personal statement of account twice-yearly.
Appendix A
Appendix A - Investment and Borrowing Powers and Restrictions
Investment and Borrowing Powers
1.
borrowing, lend8ng,and uncovered sales of traisferable
securities and money market instruments are equivalent
to the requirements of Directive 85/61 1/EEC, as
amended;
T i e Company's Art cles of Assocatioi p e w i t it to invest in
transferable secu~t es and otier Iiqu:d f,nancial assets, to the full
extent permitted by Luxe-nbourg :aw. The Articles have the effect
that, sdbject to the law, it is at the Directors' discretion to
determ,ne a i y restrictions on investment or on borrowing or on t i e
pledging of t'le Company's assets.
the bds ness of t$e other UCls 1s reported in half-yearly
and annual repom to enable an assessment to be made
of the assets and Iiabisities, income and operatiois over
the report ng period,
Investment and Borrowing Restrictions
The following restrictions of LJxembourq law and (where relevant)
of the Directors cu*rently apply to the Company:
2
2.1.
no more than 1 0 % of the UCITS' or the other UCls'
assets (or of the assets of aiy sub-fund thereof, provided
tnat tne principle of segregation of babilities of the
differeit compartments is ensured in relapon to tiird
The investments of eaci Fund shall consist of:
(a) Transferable secu:.ties and money market instrments
admitteb to official listings on stock exchanges in Member
States of the Earopeai Un.on (the "EU"),
(b) Transferab'e securities and money market instruments dea!t in
0'1 otier regu!ated markets in Member States of the EU, that
are operating regularly, are recognised and are opei to the
public,
ic)
part:es), whose acauis tion is contemplated, can,
according to their constitdtiona! documents, be invested
in aggregate in units of other UCITS or other UCIs;
(9)
Vansferable securities and money market instruments
admitted to off cia: I stlngs 01 stock exchanges in any other
country in Eu'ope, Asia, Oceania. the American coitinents
and Africa,
(d)
(e)
(fj
Transferable secJ'ties and money market instruments dealt in
on other regulated markets t i a t are operating regJlarly, are
recogn,sed and open to the public of any other coJntry in
Ewope. Asia, Oceania, the American convnents ard Africa.
(h) financial derivative instruments, including eodivalent cashsett ec instruments, dealt in on a regulated market; and/or
financ:al derivative instrumcits dealt in over-the-comter ('OTC
derivat.ves'), provded that:
tne underlying consists of instrumeits described i i subparagraphs (a) to (5)above, financia: indices, interest
Receitly ssued transferab e securities a i d money market
iistwTents provided that the terms of the issue include an
undertawg that appl,cation wil be made for admission to
the offic al listing on one of t i e stock exchanges as spec fled
in a) ano c) or regulated markets that are operating regularly,
are recogn sed and open to the public as specified in b) a i d d)
and that sdch admission is secured withii a year of issue,
rates, foreign exchaige rates or currencies, in wh,ch the
Compaiy may invest according to its investment
objectlves;
the counterpart es to OTC derivative transactions are
institut 01s subject to prudential supervision, a i d
beloig ng to the categories approved by the CSSF. and
Units of UCITS and/or other uidertakings for colledive
investment ("UCls") wlthin the meaning of Article 1(2), f:rst
and second indents of Directive 85/61 l/EEC. as amended,
whether they are situated in a Member State or not, provded
that:
such other UCls are authorised under laws which
provide that they are sub;ect to supervision considepea
by the Commission de Surveillance du Secteur Financ.er
("CSSF") to be equivalent to that laid down in
Community law, and that cooperatioi between
author:ties is sufficiently ensured;
9
the level of protection for unitholders in the other UCls
is equiva ent to that provded for unitholders I? a UCITS,
a i d in paqicular that the rules on asset segregation,
36 Vertill Lynch International Investrent Funds
deposits with credit instltutions which are repayable on
demand or have the right to be withdrawn, and maturing in
no more than 12 months, provided that the credit institution
has its registered office in an EU Member State or, if the
reg stered office of the credit inst.tution is SitJated in a n o i Member State, provided that it is sdbject to pwdential rules
coissdered by t w CSSF as equlvaleit to those laid down i i
Commmty law.
the OTC derivatives are subject to reliable and verifiable
valuation on a dally basis and c a i be sold, Lquidated or
closed by an offsetting transaction at any time a t the r
fair value at the Company's initiatlve,
(,)
money market instruments other than those dealt in on a
regulatec market, wiich fal! under Article 1 of the 2002 Law,
if the issue or issuer of such instruments is itself regil'ated for
the purpose of protecting investors and savings, and provided
that they are:
issued or guaraiteed by a central, regioial or local
authority or central bank of an EU Member State, the
European Central Bank, the EU or the Eu*opean
Investment Bank, a non-Member State or, in the case of
Appendix A
a Federa' State, by o l e of the members mak:ny up :he
federation, or by a pub1 c international body to wiich
one or more Member States belonq, or
issued by an undertaking any securities of which are
dealt in on regulated markets referred to in
sdbparagraphs (a), (b) or (c) above; or
IssJed or guaranteed by an establishmeit subject to
prJdential supewision, in accordance w th cr,ter a
defined by Commuiity law, or by an estab1,shment
wh c+ 5 subject to and complies w th prJdentia ru es
cois dered by the CSSF to be at 'east as steinyeit as
those la8dd o w i by Community law; or
iss~ecby other bodies belonging to the categories
app-oved by the CSSF prov,ded tiat mestmem in such
instwwnts are subject to investor protect o i equivalent
to t i a t laid down n the f rst, the second or the third
indent and provided that the issder is a compaiy whose
2.5
A Fund may not invest in any one i s s m in excess of t i e I mits set
oat be:ow.
(a) Not more than 10% of a Fund's net assets may be iivested in
transferab'e securities or money market instruments issued by
the sdrne entity
(b)
Not more than 20% of a Fund's net assets may be invested in
depos.ts made wit+ t i e same entity.
(c)
By way of exception, t i e 10% limit stated in the first
paragvph of th s section may be increased to:
a maximum of 35% if the transferable secu*:t:esor
moiey market instruments are issued or guaranteed by
a i EU Member State, by its local authoritles, by a nonMember State or by public international bod es to which
one or more Member States belong;
a maximum of 25% in the case of certain bonds when
tnese are issued by a credit institution which has its
registered office ,n an EU Member State a i d
2.2.
Furthermore. each Fund may invest no more than 10% of its aet
assets in securit:es and money market instruwnts other than those
referred to in $&paragraph 2.1 (a) to (i).
2.3.
Each FJnd may acquire the units of UCITS aid/or other UCls
referred to i i paragraph 2.1, (f). providcd that the aggregate
iivestment in UCITS or other UCI's does not exceed 1096 of the net
assets of e x ; ] h i d . unless otherwise proviced for in the relevait
Fund's mvestment policy.
When eaci FJnO has acqJired shares of UCITS and/or other UCIs.
t i e assets of t i e respect,ve UCITS or otheFUCls do not W e to be
combined for the purposes of tne limits laid down in paragraph 2 5
When a h i d wests in the units of other UCllS and/or other UCls
tnat are managed, directly or by delegation, by the s a w
investment maiager or by any other company with w i ch the
investment maiayer is linked by common management or control,
or by a substantia: direct or indirect holdiiy, that no subscription or
redern3tioi fees may be charged to the Company on :ts investment
in the UI t s of sJch other UCITS aid/or UCls
is subject
by law to special public supervision designed to protect
bond holders. In particular, sums deriving from the issue
of these bonds must be invested in conformity with the
law in assets which, during the whole period of validity
of the bonds, are capable of covering claims attaching to
tne bonds and which, in tne event of failure of the
sue-, would be used on a priority basis for t i e
reimbursement of the principal and payment of the
accrJed interest. When a Fund invests more than 5% of
its net assets in t i e bonds referred to in tiis paragraph
and .ssued by one issuer, the total value of these
investments may not exceed 80% of the value of the net
assets of such Fund.
cap tal and reserves amount to a t least EUR 10 million
and which presents and publishes its ann& accounts in
accordance with Directive 78/660/EEC (1 ), s an entity
wh c+, within a group of compan es whici iicludes one
or several listed compan:es, is tied cated to t i e financing
of t i e group or is an entity wh ch is dedicated to the
fiiaicing of s e w tisation vehicles which beiefit from a
bai? ng liquid ty line
(d) The total value of the transferable securities or money market
instruments heid by a Fund in the issuing bodies in each of
wh ch it invests more than 5% of its net assets most not then
exceed 40% of the va'ue of its net assets. This limitation does
not appiy to deposits a i d OTC derivative transactions made
wit1 financial institut;ois subject to prudential supervision.
The transferable secur ties and money market instruments
referred to in the two iidents of paragraph 2.5. (c) above
sha'l not be taken into account for the purpose of applying
the limit of 40% referred to in this paragraph.
Notwithstanding the individual limits laid down in sobparagraphs 2.5. (a) to (d) above, a Fund may not combine
investments in transferab'e securities or moiey market
:istrJments issued by a s,ngle entity, and/or
deposits made with a single entity, and/or
2.4.
A Fund may hola ancillary Iiqdid assets
-
exposures arising from OTC derivat,ve transactions
Jndertakel with a single entity,
in excess of 20% of its net assets
Merrill Lynch International Invc5tment Funds 37
Appendix A
When a transferable security or moiey market instrument
embeds a derivative. the latter must be taken into account
when comp'yng witn t i e requirements of the above
2.6. The Company m y not invest in shares with vat ng rights enabling
it to exercise s:gi!ficant iiflJence over the management of the
issuing body.
meitioned restr ctions.
2 7
The limits provided for in sub-paragrapis 2 5 (a) to (d) above
may not be combined, and thJs investments i i transferable
securities or money market inst<Jmentsissued by the same
ent8tyor in deposits or derivative instrumeits made with this
entity carried out in accordance wit71 paragraphs 2 5 (a) to (d)
shall under no ciwmstances exceed in total 35% of the net
assets of the F m c
The Company may not'
(a) Acquire more than 10% of t+e shares with noi-voting rights
of one and the same issuer.
(b) Acquire more than 10% of the debt securities of one and the
same issuer.
Compan es wh c i are included in the same group for the
purposes of consolidated accounts, as defined in accordance
w t i Directive 8313491 EEC or in accoraance with recogiised
(c)
Acquire more thai 25% of the units of one ard the same
undertaking for collectwe investment
(d)
Acquire more than 10% of the money market instruments of
any single issuer.
international accounting ruies, are regarded as a slngle entity
for the purpose of calculatirlg the investment limits
mentioned v- sub-paragrapis 2 5 (a) to (d) above
The FJnd may not invest cumulatively more that 20% of its
net assets in transferable securities or money market
instruwnls of the same group wbject to restrict!ons 2.5. (a)
a i d the three indents under 2.5. (d) above.
The limits stipulated in sub-paragraphs 2.7. (b) (c) and (d)
above may be disregarded at the t i w of acqu.sit;on if, at that
time. the gross amount of debt secuWes or of the money
market Instruments, the net amoJnt of securities in issue
cannot be calculated.
07
2.8.
Without prejudice to the limits laid down in paragraph 2.7.
below, the limit of 10% laid down :n sub-paragraph 2.5.(a)
above is raised to a maximum of 20% for investment in equity
and/or debt securities issued by the same body w i e i the aim
of the iivestment policy of a h i d is to rep1 cate t i e
compos,tion of a certain equity or debt securities index which
is recognised by the CSSF, on the fo'lowing bas.5.
9
the composition of the index is sufficientiy dmversified,
the index represents an adequate benchmark for the
market to which it refers.
9
(b)
Transferable securities and money market instruments issued
or guaraiteed by a non-EU Member State,
(c)
Transferable securit es and money market instruments issued
by pub1 c intevtional institutiois to which one or more EU
Member States are members,
(d) Transferable securities held by a Fund in the capital of a
company irlcorporated in a non-Member State investing its
assets main:y 11
the securities of issiling bodies having their
registered off ces in that State. where under the leglslatlon of
it :s pubkhed in an appropriate manner
Th s Iim:t is 35% w w e that proves to be jilstif:ed by
exceptional market conditions in particular in regdated
markets where certa n transferable securit:es or money
market :istrments are highly dominant. The investment up
to this I:mit is only permitted for a s ngle issuer.
that State such a holding represents the only way in which
such Fund can mest in the secur:ties of issuing bodies of that
State. Th s dewgatson,however, shall apply only if in its
investment p o k y the company from the non-Member State
complies witrl t i e ILmits laid daw1 in Articles 43, 46 and 48
(1) and ( 2 ) of the 2002 Law Where tile lim% set in Articles 43
and 46 of the 2002 Law are exceeded, Artcle 49 shall apply
mutatis mutarldis;
By way of derogation, each FJnd is authorised to invest up to
100% of its net assets in differeit transferabk securities and
money market instruments issued or guawtteed by an EU
Member State, its local authorit es, by anot'ler member state
of tne OECD or publ,c international bodies of wh ch one of
more LU Member States are members. prov dec that (I) such
securities are part of at least six different i s s m arld (11)
securities from any one issue do not account for more than
30% of the net assets of sucn Fund
(e) Transferable securit es held by the Company in the capital of
subsid:ary comparlies carrying on only the busmss of
management, adv:ce or marketing 'n t i e country where the
subsidmy is located, !n regard to the repurchase of units at
unitholdefs' request exclus!velyon !ts or their behalf.
2.9
The limits stipu'ated in paragraphs 2.6. and 2.7. above do not
app:y to:
(a) Transferable securit es and money market instruments issued
or guaranteed by an EU Member State or its lccal authorities;
The Company may always, in the interest of the shareholders,
exercise the subscription rights attached to securities. which forms
part of its assets
Appendix A
When the max mum percentages stated i i paragraphs 2.2. tkough
2.7. above are exceeded for reasois beyond the coitrol of the
Compaiy, or as a result of the execise of subscript on rights, the
Company must adopt, as a priority objective, sales transactions to
remedy the situation, taking due account of the interesls of its
shareholders.
methods which are c+osei in order to estimate the risks assoc ate0
w t h transactions in derivative instwneits.
32
2.10. A Fund may borrow to the extent of 10% of ,ts total net assets
(valJed at market value) provided these borwwinl;s are made on a
tmpcrary basis. However, the Company may acquire for the
accouit of a Fuid foreig7 curwcy by way of back-to-back loan.
2.1 1 . The Company may not graqt creoit facilities nor act as guaraitor
on behalf of tnird parties, provided t i a t for the pJrpose of th s
restriction (i) the acquisition of transferable secw t es, money
market instruments or other financia investments referred to in
sub-paragraphs 2.1. (f), (ti) and (i) above, in fu'ly or part!y pa:d
form and (11) the pemtted lending of portfo!io securities shall be
deemed not to constitute the making of a ! o x .
hedging purposes
3.3.
When these operations coicern the use of dervative instruments,
these coiditions and I m,ts shall coifor-n to the prov:s:ons!aid
down in the 2002 Law.
Unoer no c rcumstances shall these operations cause the Company
to diverge from its investment policies and investment restrictions.
34
2.12. Tie Company undertakes not to carry oat uicovered sa!es
transactions of traisferable securities, money market instruments
or otler financ a' .nstruments referred to in sub-paragraphs 2.1. (f),
(h) a i d (I) above; provided that tiis restrict,on shall not prevent the
Compaiy frov mak ng deposits or carrying out accoJnts n
connect 01 with finaicia! derivatives instrunents, permitted within
the Iim:ts referred to above.
2.13
In addition, the Company is authorised to employ techiiques and
instwments relating to transferable securities and to moiey market
instruments under the conditions and with n the I mits laid down
by tne CSSF provided that such techniques and instrumeits are
used foc the puvpose of eff cient portfolio management or for
The Company will ensure that the global exposure of the
underly ng assets shall not exceed the total net value of a Fund.
The underlying assets of index based derivative instruments are not
combined to the mvestmeit limits laid down under sub-paragraphs
2.5. (a) to (d) above.
When a transferable security or money market instrument
embeds a decvatlve, the !atter must be taken into account
when complying with the requirements of the abovement oied rest:ictions.
The exposure is calculated taking into account the current
value of the underlying assets, the couqterparty risk, future
market movements a i d the time available to liquidate the
positions.
l h e Company's assets may not incluce preciods metals or
certificates representing the-n. commodit es, commodities
contracts, or certificates representing commoaities.
2.14. Tne Company may not pdchase or sell real estate or any option.
right cr interest therein, proviced that the Company may mest in
Securlt es secJred by real estate or interests t+ere.n or issued by
compzn es which iwest in real estate or interests tierein.
3.5
Securities leno ng
The Company may enter into secur,ties lending transactions
peovded t i a t
(a)
2 15 The Company will in addition comply with suci fdrther restrictions
as may be required by the regulatory authorsties in any country n
which the Shares are marketed
The Company shall take t h e risks that it deems reasonable to
reach the assigned objective set for each Fund; however, it
cannot guarantee that it shall reach i t s goals given stock
exchange fluctuations and other risks inherent in investments
in transferable securities.
3.
Financ al Techniques a i d Instruments
3.1.
T w Company must employ a risk-manayenleit process which
enables it to monitor a i d measure at any time the risk of the
posit ons and tneif contribution to the overa:! rist prof e of the
portfolio: it mJst employ a process for accurate and iidependent
assessmeit of the valde of OTC derivative :nstrurneits. It mJst
communicate to the CSSF regularly and in accordance with t i e
detailed rules defined by the latter, trie types of derivative
instruments, the underlyng risks. the qaantitat ve limits and the
the traisactions are fntered into with n a standardised
leiding system organised by a recogn,sed securities clearing
list tution or by a higily rated specialist finaicial institution,
(b) collaterai (coisisting of cash or government bonds) for the
lend i y is ma,nta ned wnich has a value a t least equal to the
value of the secJrities lent: a i d
(c)
lerldiig transactions are not carried out in respect of securities
representing more than 50% of the aggregate m a w t value
of t i e securities in the relevant portfo'io, and the term of any
leiding tFansaction does not exceed 30 days (unless the
lending t,ansactions are terminab'e at any time).
Any net i n c o w (let of any remuneration to which the Company's
stockleiding agent is erlt tled) deriving from securities lending to
which the Compaiy is entitled w.1 be re nvested in t w Compaiy.
Appendix A
36
Repdrchase agreements
The Compaiy may as bJyer or seller eiter into repurchase
agreements which COSI st 'n the purchase and sale of secw ties
whereby the terms of agrement entitle t i e seller to repurchase
from the purchaser t i e securit es at a i agreed price ana time, so
long as
(a) during the lifetime of a repurchase agreement the Company
may rlot sell the securities wiich are the subject of the
agreement before the repurciase of the securities by the
counterparty has been carred out or before the repurchase
period has expired, and
(b) commitments arising from repurchase agreements do not
preverlt the Company from weting redemption obligations
A.1 such permitted transactions w s t be effected w t h highly rated
specialised financ.al institutions;
37
Risk associated w th OTC derivat ves
T+e couiterparty risk on any transaction invohng an OTC
der vative instruwnts may not exceed 10% of the assets of a Fund
wheu the counterparty is a creoit irlstitution domiclled in the EU or
in a country where the CSSF coisiders that sdpervisoiy regulations
are equiva ent to those prevai i i g 01 the EU This limit is set at 5%
in aiy other case
Tie Company's delegates wi I coot idously assess the credit or
couiterparty risk as well as t i e poteitial risk, which is for trading
activities, the risk resulting from adverse movemeits in the level of
volatility of market prices a i d will assess the hedging effectiveness
on a i ongoing bass. They will define specif:c internal ILmits
applicable to these c nds of operations ana mon:tor the
counterparties accepted for these transactions.
4G Merrill Lynch International Investwent Fund5
Appendix B
Appendix B - Summary of Certain Provisions of the Articles and of Company Practice
Articles of Association
1
Terms used II th s summary that are defined II t i e Aqicles have
t+e same meaiiig be ow
(a) Corporate Existence
The Company is a company existing in the form of a societe
anoiyme qualifying as a sociPtP n'investissement a capita,
variable (SICAV) under the name of Merrill Lynch Intemationa:
Investment Funds with the status of a Part I Undertaking for
Collect ve Investment in Traisferable SecuriLes (UCITS)
(b)
Sole Object
The sole object of the Company :sto place the fuids available
to it in one or more portfolios of transferable securit:esor
other assets referred to in Artde 41 (1) of the 2002 Law,
referred to as "Fmds", wit3 the purpose of spreadiig
investmeit risks and afford ng to its shareioldefs the results
of the manage-nent of t i e Company's Funds.
(c)
Capital
The capital is represented by fully paid Shares of no par value
ano will at any time be equal to t'le aggregate value of trw
net assets of the Fuids of the Company Any variat on of t i e
Company's capital has immed ate effect
(d)
Fractions
F-actions of Shares may be issued only as Reg stered Shares
(e)
Voting
In addition to the right to one vote for e a c i whole Share of
which he is the holoer at general meetiigs, a holder of Siares
of any pa.ticJlar Class wi'l be entitled at a i y separate meetiig
of the i o ders of Shares of t i a t Class to one vote for each
whole Share of t i a t Class of which he is the holde,
(R
Joint Holders
The CompaTy will register Registme Sharcs ;oint y i i the
names of not more than four holders should they so require.
In such case the rights attaching to silch a ShaFemust be
exercised jointly by all those partes in w'losc names it is
regsstered except that verbal instructions w:ll be accepted by
the Company from any one joint holder In cases where verbal
instruct 01s are permitten pursuant to provsions of this
PospectJs. W,tten instructions will be accepted by the
Company from a i y o l e joilt holde?where a!l the nolders
have previously given w r . t t e i autiority to the Transfer Ageit
Directors
The Art cles prcvioe for ttle Company to be managed by a
board of D rectors composed of at least three persois
Directors are elected by the shareholders The Directors are
vested with a!l powers to perform all acts of administration
a i d d,sposition in the Company's interest In pawular t i e
Virectors have power to appoiit a i y person to act as a
functionary to the Fund.
No contract or other transaction between the Company and
any otner company or firm shall be affected or inval,dated by
the fact that a i y o l e or more of t i e Directors or officers of
the Company .s interested in. or is a director, associate, officer
employee of, t i a t other company or firm.
07
Indemnity
The Company may indemnify any Director or officer against
expenses reasonably incorred by him in connection with aiy
proceedings to which he may be made a party by reason of
sucn pos m i in the Company or in any other compaiy of
which the Company is a siareholder or creditor a i d f w m
which he is not entitled to be indemnified, except where oue
to gross negligence or wilfu misconduct on his part.
Winding u p and Liquidation
The CoTpany may be wound up at aiy time by a resolution
adopted by a genera, meeting of shareholders in accordance
witn the pwv sions of the Articles The D rectors must subm,t
the question of the wiiding up of the Company to a general
meeting of shareiolders if the corporate cap,tal falls below
two-tiirds of the minimdm capital prescribed by law (the
minimum cap8talis currently the equivaleit of €1,250,000)
On a winding up, assets avai ab e for distribution amoigst the
or t i c Investor Sevice Centre to accept those instwctions.
Instructions accepted on either of such bases will be blnding
on all the joint holders concerned.
(g)
Allotment of Shares
T i e Directors are autnorised witiout I.rnitation to a lot a i d
i m e Shares at any time a t the cdrent p v e per Share without
reserving preferential subscription rights to existing
shareholcers.
shareholders w II be appl,eo in t i e following prior ty
f 1st. in t'le payment of any balance then rema ning in
t i c relevant FJid to the holcefs of Shares of each Class
nked to the Fuid. such payment being made i i
accorcaice wmth any applicable rights a t t a c h q to those
Shaees. and otherwise in proportion to the total number
of Shares of all the relevant Classes held, and
()
I
(11)
secondly, II the payment to the holders of Shares of any
ba'aice then rema ning a i d not comprised in any of the
Funds, such balance beiig apportioned as betweerl the
Funds pro rata to tne Net Asset Value of each Fund
immed,ate:y prior to a i y d stribution to shareho'ders on
a wmnding up, and payvent being made of the mounts
so apportioned to the holders of Shares of each Class
Ihnked to that Fmd in such proportions as the liquidators
in t i w absoldte discretion tqink equitable, sub,& to
the Articles and Luxembourg law
LiqJidation proceeds not claimed by shareholders at close of
Iiqu,dation of a Fund w II be oeposited at the Caisse de
Appendix B
(k)
Consignation in LJxembourg a i d sha'l be forfeiteo after th,rty
years
US Securities Act of 1933 as awnded from time to time and as
may be further supp'emented by resolution of the Directors
Unclaimed Dividends
If a oiwdend has been declared but not pad, a i d no coupon
has been tendered for such divideid within a period of five
years, the Company is entitled uider LuxemboJrg law to
decare t i e dividend forfeited for the benefit of the Fund
conceried The Directors have, iowever, resolved as a matter
of policy not to exe'cise t i i s right for at least twelve yeas
after the relevant d,vidend is declared This policy wil! not be
a k e d w thcut the sanction of the shareholders in general
meeting
If a s+arehoider rurrent!y resident outside the US becomes resident
in the US (and consequently comes w:th:n the defiqition of a US
Person), t i a t shareholder will be required to redeem its Shares.
Restrictions on Holding of Shares
2.
Shares will be d vided into Classes each linked to a Fund. More
than one Class of Shares may be linked to a FJn6 Currently, eight
Classes of Shares (Class A, B, C, D, E, J, Q and X Shares) are linked
to each Fund except for the Distributing Funds for which there are
sixteen Classes of Shares (Class A D stributing, Class A NonD:stributing, Class B Distributing, Csass B Non-Distributing, Class C
D:stributing, Class C Non-D:stribut ng, Class D D,stributing. Class D
Non-Distribdtlng, Class E Non-DisV.buting, Class E Distr,but:ng,
Class J Distributing, Ciass 1 Non-Distributing, Class Q Distributing,
Class Q Non-Distribdtiig and Class X Non-Distributing, Class X
Distributing Shares). Tiey have no preferential of pre-emption
r,ghts and are freey transferabie, save as referred to below.
3
1qe Directocs may impose or relax v s t r ctions (iicluding restrictions
on transfer and/or t w requirement tqat Shares be issued only in
registered form) on any Shares or Class of Shares (but not
necessarily on all Shares within the same Class) as they may think
necessary to ensJre that Shares are neither acqu red nor he'd by or
on behalf of any person in circumstaqces giving r se to a breach of
the laws or reqdirements of any couitry or goverimenta'
r e g atory authority o i the part of that persoi or the Company, or
which might have adverse taxat o i or other pecuiiary
consequences for the Company, inclddlng a requirement to register
under any secur ties or iivestmeit or similar laws or requirements
of any country or authority The Directors may in this conqection
requ re a shareiolder to provide SUCI information as they may
consider necessary to establish whetier he is t+e benefic al owner
of the Shares that he holds
07
If the Co-npany becomes aware that any Shares are owned direct'y
or benefic al y by any person in breach of any law or requirement
of a country or governmental or regulatory authority, or otierw se
4
in t i e ciwmstances referred to in th s paragraph, the Directors
may reqJ1.e t+e redemptioi of such Shares, decline to issue a i y
Share a i d register any traisfer of any Share or decllne to accept
the vote of any person who is precluded from hold ng Shares at
a i y meetiig of the sclareho'ders of the Company
Tne Directors have resolved that no US Persons will be permitteo to
own Shares The Directors bave resolved that "US Person" means
a i y US resident or other person specif eo in Regulat 01 5 under the
42 Merriil Lynch lritcrriational investment Funds
Funds and Classes of Shares
5.
The Company operates separate investmeit "Funds" and within
each Fmd separate Classes of Shares are linked to that Fund.
6
Shares may be mued with or have attached thereto such preferred,
deferred or other special r,ghts, or such restr.ctions whether in
regard to div denc. return of capital, conversion, transfer, the price
payable on al otmeit or otherwise as the Directors may from time
to t me tieterm,ne and such r gits or restrictions need not be
attache0 to a I Snares of the s a w Class
7.
The Directors are permitted to create more than one Class of Siare
liiked to a single Fund. This allows, for example, the creat:on of
accumulation and distribution Shares, Shares with differeit oealiig
cdrreicies or Classes of Shares with different features as regards
participation i i capital and/or income linked to the same FJnd; and
also permits different charging structures. The Arhcles provde that
certa.n variations of t?e rig% attached to a Class of Shares may
only be made with the sanction of a Class meeting of holders of
Shares of that Class.
8
The Directors may reouire redemption of all the Shares linked to a
particdlar Fund if the Net Asset Value of the relevant Fund falls
below US615 million (or the equivalent in any relevant Deal ng
Currency) The Articles also permit the Directors to notify
siareholders of the cosure of any particular Fund where tiey deem
it in the iqterests of t i e shareholders or appropriate because of
chaiges in the economic or political situation affectiig t i e Fund
b d 1 such circumstaices t i e Directors intend as a matter of policy
to offer holders of any Class of Shares a free traisfer into the same
Class of Shares of other Fuids. As an alternative, subject to at least
30 days' prior notice to ho ders of Shares of all Classes of the
re evant Fund, the Directors may arrange for a Fund to be merged
w t i another Fund of the Company or with another Luxembourg
UCITS (see also paragraph 25 below) Any such merger will be
b icing on the holders of tne Shares of the Classes of that Fund
A Fund may be terminated or merged in c8rcmstancesother than
those mentioned above with the consent of a majority of the
Shares preseit or represented at a meetiig of all shareholders of
the Classes of Shares of that Fund (at wh ch no quorum
requirement w i ' apply) Where a Fuid is terminated or merged the
redemption pr ce payab'e on termiiatioi or merge- will be
calcu!ated on a basis reflecting the rea isation and iquidation costs
on terminat ng or mergiqg the FJnd
The Directors have power to suspend dealings in t k e Shares linked
to any Fund where it is to be terminated or merged iq accordance
Appendix 6
with the above provssions Suc+ sdspension may take effect at any
time after the not ce has been given by the Directors as mentioned
above or, where the termination or merger requ res the approval of
a meeting of holders, after the passing of the re:evant resoluvon
the exchange on which those securities or assets are traded or
admitted for trading For securities traded on markets closing after
the time of the valuation, last known prices as of thls time or such
other time may be used If net transactions in Shares of the Fund
Where dealings in the Shares of the Fund are not suspended, the
prices of Shares may be adjusted to reflect the anticipated
on any Dealing Day exceed the threshold referred to in paragraph
16(c) below, then additional procedures apply The value of any
realisation and liquidation costs mentioned above
securities or assets traded on any other regulated market is
determined in ttle same way Where such securities or other assets
are qdoted or dealt in on or by more than one stock exchange or
regulated market the Directors may in thelr dscret,on select one of
such stock exchanges or regulated markets for such purposes
Valuation Arrangements
9
Under the Articles, for the purpose of determining the issue and
redemption price per Share, the net asset value of Shares shall be
determined as to t i e Shares of each Class of Share by the
Company from time to time, but in no instarlce less than twice
monthly, as the board of Directors may dsrect
10
14.
The Directors' policy is normally to deal w'th requests received
w trl prudence and in good faith on the basis of their expected
d:sposal or acquisition price. Cash, bills payable on demand and
other debts and prepaid expenses are valued at their nominal
amount, unless it appears unlikely that such nominal amount is
obtainable.
before 12 noon Luxembodrg time on a Dealing Day on tnat day,
other requests are normally dealt with on the next Dea'ing Day
Net Asset Value and Price Determination
11. All prices for transactions in Shares on a Dealing Day are based on
the Net Asset Va!ue per Share of the Class of Shares concerned, as
shown by a valuation made at a time or times determined by the
Directors. The Directors currently operate "forward pricing" for all
Funds and Classes of Share, i.e., prices are calculated on the
Dealing Day concerned after the closing time for acceptance of
orders (see page 26). Prices in respect of a Dealing Day are
normally published on the next Business Day. Neither the Company
nor the Custodian can accept arly responsibility for any error in
publication, or for non-publicaton of prices or for any inaccuracy
of prices so published or quoted. Notwithstanding any price
quoted by the Company, by the Custod,an or by any distr butor, a!l
transactions are effected strictly on the basis of the prices
calculated as described above. If for any reason such prices are
required to be recalculated or amended, the terms of any
transaction effected on tile basis of them will be subject to
correction and, where appropriate, the investor may be required to
make good any underpayment or reimburse any overpayment as
appropriate. Periodic valuations of holdings irl any Fund or Class of
Shares may be supplied by arrangement with the Transfer Agent or
the Investor Service Centre.
12.
Tne Net Asset Value of each Fund, calculated in its Base Currency,
is determiied by aggregating the value of securities and other
assets of t i e Company allocated to the relevant Fund and
deducting the liabilities of the Company allocated to that Fund
The Net Asset Value per Share of tne Classes of Shares of a
p a r t d a r Fund will reflect any adjustment to the Net Asset ValJe of
the relevant Fuid described in paragraph 16(c) below and will
differ as a result of the allocation of different habillties to those
Classes (see "Fees, Charges and Expenses" on pages 25 to 26) and
as a result of dividends paid
13.
The va ue of all securities and other assets form,ng any part cular
Fund's portfolio is determined by last known prices upon dose of
If a security is not traded on or admitted to any official stock
exchange or any regulated market, or in the case of securities so
traded or admitted the last known price is not considered to reflect
their true value, the Directors will value the securities concerned
15.
If in any case a particular value is not ascertainable by the methods
odtlined above, or if the Directors coisider that some other
method of valuation more accurately reflects the fair value of the
re evant security or other asset for the purpose concerned, the
method of valuation of the security or asset will be such as the
Directors in their absolute discretion decide.
16.
Under current procedures adopted by the Directors the price
for ali Classes of Shares of any Fund is the Net Asset Value per
relevant Class of that Fund calculated to the nearest currency
unit of the relevant Dealing Currency.
For those fmdS with more than one Dealing Currency (as set
oJt on page 2). the additional Dealing Currency prices are
calculated by converting the price at the relevant spot
exchange rate at the tsme of valuation
If on any Dealing Day the aggregate transactions in Shares of
all Classes of a Fund result in a net increase or decrease of
Shares which exceeds a threshold set by the Directors from
time to time for that Fund (relating to the cost of market
dealing for that Fund), the Net Asset Value of the relevant
Fund w.ll be adjusted by an amount (not exceed,ng 1 25%. or
3 % in the case of the H gh Yield Funds, of that Net Asset
Value) which reflects both the estimated fiscal charges and
deal ng costs that may be incurred by the Fund and the
estimated bid/offer spread of the assets in which the Fund
invests The adjustment will be an addit40nwhen the net
movement results in an increase of a'l Shares of the Fund and
a deduction when it results in a decrease. As certain stock
markets and jurisdict ons may have different charging
structures on the buy and sell sides, the resulting adjustment
may be different for net inflows than for net outflows Where
Merrill Lynch InternationalInvestment Funds 43
Appendix B
a Fund invests substant ally in government bonds or money
market securities, the Directors may decide that it is not
appropriate to make such an ad,ustment.
Redemption and Deferred Sales Charges
17
(a) The Directors are entitled to levy a discretionary redevption
charge on shareholders of all Classes of Shares where they
believe that excessive trading is being practised.
Conversion
18.
The Articles allow the Directors on issuing new Classes of Shares to
impose such rights of conversion as they determine, as described in
paragraph 6 above. The basis of all conversions is related to the
respective Net Asset Values per Share of the relevant Class of the
two Funds concerned.
19
The Directors have determined that the number of Shares of the
Class into which a shareho!der wishes to convert his existing Shares
will be calculated by dividing (a) the value of the number of Shares
to be converted, calculated by reference to the Net Asset Value per
Share by (b) the Net Asset Value per Share of the new Class This
calculation will be adjusted where appropriate by the inclusion of a
conversion charge (see paragraph 20 below) or a delayed initial
charge on Class A, Class D or Class E Shares (see paragraph 20
below). No conversion charge wit be made when a delayed initial
charge is payable If applicable, the relevant exchange rate
between the relevant Dealing Currencies of the Shares of the two
Funds will be applied to the calculation
(b) On redemption of Class B, C and Q Shares, the relevant CDSC
rate is charged on the lower of (I) the price of the redeemed
shares on the Dealing Day for redemption or (11)the price paid
by the shareholder for the original purchase of the redeemed
shares or for the shares from which they were converted or
exchanged, in either case calculated in the relevant Dealing
Currency of the redeemed shares
(c) No CDSC will be levied on the redemption of (a) Class E, C
and Q Shares derived from reinvestment of dividends, or (b)
Class B. C and Q Shares in the Reserve Funds (provided they
were not converted from Shares of a non-Reserve Fund or
exchavged from shares of a ML Fund)
The Net Asset Value($) per Share used in this calculation may reflect
any adjustment(s) to the Net Asset Value(s) of the relevant Fund(s)
described in paragraph 16(c) above.
(d) The CDSC is levied by reference to the "Relevant Holding
Period", which is an aggregate of the periods during which (a)
the redeemed shares, and (b) the shares from which they were
derived (if any) as a result of conversion or exchange, were
held in:
any Fund except a Reserve Fund;
(i)
(ii) any ML Fund (but not a ML Money Market Fund).
When the Relevant Holding Period exceeds four years no
CDSC is payable in respect of the redeemed shares.
In cases where redeemed shares are only part of a larger
holding of Class B. C and Q Snares, any Shares acquired by
dividend reinvestment will be redeemed first, and where the
holding consists of Class B. C and Q Shares acquired at
different times. it will be assumed that those acquired first are
redeemed first (thus resultmg in the lowest CDSC rate
possible)
Where the redeemed shares have a different dealing currency
to the Shares (or similar shares of a ML Fund or ML Money
Market Fund, as described on page 6) originally purchased,
for purposes of determining the CDSC the price paid for the
latter w d be converted at the spot exchange rate on the
Deallog Day for redemption
The CDSC may be waived or reduced by the relevant distributor
a t its discretion or for shareholders who, after purchasmg Class
E, C and Q Shares, become US Persons and are required to
redeem their Shares as a result (see paragraph 4 above).
20.
Except as set out under the section "Switching Between Funds and
Share Classes" above, no conversions are perrnittec between
different Classes of Shares of the same Fund or of different Funds.
Selected distributors may impose a charge on each conversion of
those Shares acquired through it, which will be deducted at the
time of conversion and paid to the relevant distributor While other
conversions between the same Class of Shares of two Funds are
normally free of charge, the Investment Manager may, at its
discretion (and without prior notice), make an additional
conversion charge which would increase the amount paid to up to
1% if unduly frequent conversions are made Any such charges will
be deducted at the time of conversion and paid to the relevant
distributor or the Investment Manager (as applicable)
When Class A, Class D or Class E Shares of a Reserve h i d resulting
from a direct investment into that or any other Reserve Fund
("direct Shares") are converted for the first time into Class A, Class
D or Class E Shares of a non-Reserve Fund, a delayed initial charge
of up to 5 % of the price of the new Class A Shares or up to 3% of
the price of the new Class E Shares (where applicable), or up to 2%
of the price of the new Class 0 Shares, may be payable to the
Investment Manager Where a Reserve Fund holding includes both
d,rect Shares and Shares acquired as a result of a conversion from
Shares in any Fund other than a Reserve Fund ("oroinary Shares") a
partial conversion of the holding will be treated as a conversion of
the direct Shares first and then of the ordinary Shares
The Directors reserve the right to waive or vary these requirements
and a i m to amend their policy if they consider it appropriate to do
so, either generally or in particular circumtances.
Appendix B
with the Company's Articles, cancel the allotment or, if applicable,
Settlement on Redemptions
21
Payment of an amount to a single shareholder in excess of
redeem the Shares Redemption or conversion instrudions may be
refused or treated as though they have been withdrawn if payment
for the Shares has not been made or a completed initial application
form has not been received by the Company. In addition. no
dealings will be effected following a conversion instruction and no
proceeds w II be paic on a redemption until all documents required
in relation to the transaction have been provided to the Company
An applicant may be required t o indemnify the Company or,
as described below, the Investment Manager against any
losses, costs or expenses incurred directly or indirectly as a
US$500,000may be deferred for up to seven Bds ness Days
beyond the normal settlement date. T i e redemption price may be
payable in specie as explained in paragraph 23 be'ow Failure to
meet money laundering prevention requirements may result in the
withholding of redemption proceeds The Company reserves the
right to extend the period of payment of redemption proceeds to
such period, not exceeding eight Business Days, as shall be
necessary to repatr,ate proceeds of the sale of investments in the
event of impedimeits due to exchange control requiremeits or
similar constraints in the markets in wbich a substantial pa? of the
assets of the Company are invested or in exceptional circumstances
where the liquidity of the Company is not sufficient to meet the
redemption requests.
result o f the applicant's failure t o pay for Shares applied for
or t o lodge the required documents by the due date.
In computing any losses covered under this paragraph 25, account
shall be taken, where appropriate, of any movement in the price of
the Shares concerned between the transaction date and
cancellation of the transaction or redemption of the Shares, and of
the costs incurred by the Company or, if applicable, the Investment
Manager in taking proceedings against the applicant
In Specie Applications and Redemptions
Shares of the Company may be allotted as consideration for the
vesting in the Company of securities acceptable to it and having a
value (after deduct ng any relevant charges and expenses) eaual to
the price payable for the Shares Such securities WI'I be
independently valued in accordance with Luxembourg law by a
special report of an independent aud tor, such report being
deposited with the Luxembourg Distr.ct Court
22
23
The Investment Manager has agreed to exercise its discretion
(specified in the Company's Articles) to take steps to avoid the
Company suffering losses as a result of late settlement by any
applicant In cases where payment for Shares is not made on a
timely basis, the Invest+nent Manager may assume ownership of
the Shares a i d it shall also have the right to give instructions to the
Company to mate any consequent alterabons in its register of
shareholders, delay t i e completion of the relevant transaction,
redeem the Shares in question, claim indevnification from the
applicant and/or tate proceedings to enforce any applicable
indemnity, all to tne same extent that the Company itself
may do so
Tne obligation to pay redemption proceeds may also be satisfied by
payment in specie by allocating to the holder (subject to their prior
consent) investments from the portfolio of the relevant Fund equal
in value (calculated in the manner referred to in paragraphs 13 and
14 above) to the price of the relevant Shares to be redeemed (let of
any applicable CDSC in the case of Class B, Class C and Class Q
Shares) The nature and type of asset to be transferred in sdch case
wlll be determined on an equitable basis and witnout prejud cing
t i e interests of the other holders of Shares of the same Class, and
tlle valuations used will be confirmed by a special report of an
independent auditor, deposited with the Lmembourg District Court
Dealings in Shares by t h e Investment Manager
24.
The Investment Manager, acting in its capacity as Principal
Distributor, may as principal acquire and h o d Shares and may at its
sole discretion satisfy, in whole or in part, an application or request
for the issue. redemption or conversion of such Shares by selling
Shares to and/or buying them from the applicant, as appropriate,
provided that the applicant consents to such transactioi
Shareholders will be deemed to have consented to deai with the
Investment Maiager unless they have expressly informed the
Transfer Agent or the Investor Service Centre to the contrary A i y
such traisaction will be effected on the same terms as to price and
settlement as would have applied in the case of a corresponding
issue, redempt,on or conversion of Shares (as relevant) by the
Cornpaiy T+e livestment Manager is entitled to retain any benefit
arising from these transadions
The Company has instrdcted the Custodian that any interest
benefit that may arise as a resJlt of the early settlement of Share
subscriptions and late clearance of redemption proceeds may be
set off against a n y interest obligation that the Investment Manager
may incur as a result of its arrangements to protect tbe Company
from losses from the late settlement of Share subscriptions
Compulsory Redemption
26.
If at any time the Net Asset Value of the Company is less than
US125 million (or equivalent), all Shares not previously redeemed
may be redeemed by notice to all shareholders. There is a similar
power to redeem Shares of any Class if the Net Asset Value of the
Fund to which that Class is linked falls below US815 million (or
equiva:ent), or in the circumstances described in paragraph 8
above.
Limits o n Redemption and Conversion
The Company will not be bound to redeem or convert on any one
27.
Dealing Day more than 5 % of the value of Shares of all Classes of
Default in Settlement
25
Where an applicant for Siares fails to pay settlement mon es on
subscr ption or to provlde a completed applicat,on form for a i
initial application by the due date, the Directors may, in accordance
a Fund then in issue or deemed to be in issue, as described in
paragraph 30 below.
Appendix 6
Suspension and Deferrals
28.
Valuations (and coisequently issues, redemptions and conversions)
of any Class of Shares of a Fund may be suspended in certain
Circumstances including:
the closure of or suspension or restriction of trading on any
stock exchange or market on which are quoted a substantial
proportion of the investments held in that Fund,
31
Shareholders may not redeem a holding of the Company's Shares
unless and until cleared funds have been received by the Company
in respect of that holding
the existence of any state of affairs which constitutes a1
emergency as a result of which disposals or valuation of assets
owned by the Company attributable to such Class of Shares
would be impracticable,
9
Non-Acceptance of Orders
32
any breakdown in the means of communication normally
employed in determining the price or value of any of the
investments of such Class of Shares or the current price or
values on any stock exchange or other market,
any period when the Company ,s unable to repatriate funds
for the purpose of making payments on the redemption of
such Shares or during which any transfer of funds involved in
the realisation or acquisition of investments or payments due
on redemption of shares cannot in the opinion of the
directors be effected at normal rates of exchange;
any period when the net asset value per share of any
subsidiary of the Company may not be accurately determined,
where notice has been given or a resolution passed for the
closure or merger of a Fund as explained in paragraph 8;
in respect of a suspension of the issuing of Shares only, any
period when notice of winding up of the Company as a
whole has been given.
29.
Each period of suspension shall be published, if appropriate, by the
Company. Notice will also be given to any shareholder lodging a
request for redemption or conversion of Shares.
30.
The Company will also not be bound to redeem or convert any
Shares of a Fund on any one Dealing Day if there are redemption or
outgoing conversion orders that day for all Classes of Shares of
that Fund with an aggregate value exceeding a partxular level
(currently fixed at 5%) of the approxiTate value of that Fund In
addition, the Company may defer redemptions and conversions in
exceptional circumstances that may, 11 the opinion of the Directors.
adversely affect the interests of holders of any Class or Classes of
Shares of that Fund In either case, the Directors may declare at
their discretion that some or all redemptions and conversions may
be deferred until the Company has executed, as soon as possible,
the necessary realisation of assets out of the Fund concerned or
until the exceptional circumstances cease to apply This may result
in some shareholders having redemption or conversion orders
deferred on a particular Dealing Day, whilst others do not
Redemptions and conversions so deferred will be dealt with in
priority to later requests
46 Merrill Lynch InternationalInvestment Funds
During a period of suspension or deferral a shareholder may
withdraw his request, in respect of any transaction which is
deferred or suspended, by notice in writing to the Company. Such
notice will only be effective if received before the transaction is
effected
The Directors also have power to decline to accept any order for
redemption or conversion into a particular Fund on any one
Dealing Day where the aggregate value of orders for all Classes of
Shares of that Fund exceeds a particular value (currently fixed by
the Directors at 5% by approximate value of the Fund concerned)
and the Directors consider that to give effect to such orders on the
relevant Dealing Day would adversely affect the interests of existing
shareholders In addition, the Company may defer redemptions or
conversions in exceptional circumstances that may, in the opinion
of the Directors, adversely affect the interests of holders of any
Class or Classes of Shares of that Fund In either case, the Directors
may declare at their discretion that some or all redemptions or
conversions may be declined on a particular Dealing Day, and this
may result in some shareholders having redemptior or conversion
orders declined whilst others do l o t In such circumstances the
Directors will inform each applicant as soon as practicable and if
the applicant wishes alternative instructions can be given
Transfers
33. The transfer of Registered Shares may normally be effected by
delivery to the Transfer Agent of an instrument of t-ansfer in
appropriate form. If a transfer or transmission of Shares results in a
holding on the part of the transferor or the transferee having a
value of less than a prescribed minimum the Directors may require
the holding to be redeemed. The current minimum is US85,OOO or
eauiva!ent.
Probate
34.
Upon the death of a shareholder, the Directors reserve the right to
require the provision of appropriate legal documentation to
evidence the rights of the shareholder's legal successor.
Dividends
35.
The Articles impose no restriction on dividends other than the
requirement to maintain the statdory minimum level of capital
(currently the equivalent of €1,250,000). The Directors have the
power to pay interim dividends in respect of any Fund. The current
dividend policy of the Directors is explained on page 30.
Changes of Policy or Practice
36.
Except as otherwise provided in the Articles, and subject to any
legal or regulatory requirements, the Directors reserve the right to
amend any practice or policy stated in this Prospectus.
Appendix B
Intermediary Arrangements
37.
Where Shares are issued by the Company to finaiclal instltutions
(or the'r nominees) which act as iiterrnediaries, the benefits and
obligations described in the Prospectus may be applsed by the
Company to each of the intermediary3 clents as if such client were
a direct shareholder
Appendix C
Appendix C - Additional Information
History of the Company
1.
The Company is registered under Number 8.6317 a t the Register of
Commerce at the District Court of Luxembourg where its Articles
Administrative Organisation
9.
of Association are available for inspection and where copies thereof
may be obtained upon request (and see also paragraph 33 below).
2.
Toe Company's constitution is defined in the Articles The orig8nal
Articles were published in the Recueil des SociPt& et Associations
du M h o r d (tbe "Mhorial") of the Grand-Duchy of Luxembourg
on 2lst July 1962. The Articles have been amended and restated
several times, most recently on 16 September 2005, with
publxation in the Memorial on 16 September 2005
3.
The Company was incorporated as Selected Risk Investments 5.A
on 14th June 1962.
4.
Wito effect from 31st December 1985 the name of the Company
was changed to Mercury Selected Trust, the Company adopted the
legal status of a soci6te d'investissement A capital variable (SICAV)
and was reconstitdted to enable it to issue different classes of
Snares It qualifies as an Undertaking for Collective Investment in
Transferable Securities
Manager whereby the Investment Manager is responsible for
managing the assets of the Company. The Investment Manager is
entitled to delegate its investment management functions to any of
its subsidiaries or associates and, with the approval of the
Management Company, any other person. The Investment
Manage: has delegated some functions to the Investment Advisers,
Merrill Lynch Investment Managers Limited and Fund Asset
Management, L.P. as described on page 8 and, in the case of
certain Funds, Merrill Lynch Investment Managers Limited has in
turn sub-de!egated some functions to Merrill Lynch lrlvestment
Managers Co., Ltd.
The registered office of Merrill Lynch Investment Managers Co ,
Ltd is at Nihonbashi 1-chome Building, 1-4-1, Nihonbashi,
Chuo-ku, Tokyo 103-0027, Japan.
The Investment Manager, incorporated with limited liability in
Jersey on 10th August 1972 for an unlimited period, has an issued
and fully paid-up share capital of f530.000 and carries on the
business of, inter alia, investment management. The directors of
the Investment Manager are: Mr. A J. Arnold, Mr. F.P. Le Feuvre, Mr.
G.J. Grime, Mr, G. Hamilton, Mr. A.F.J. Roe, Mr. R.E.R. Rumboll, Mr.
With effect from 1 July 2002 the name of the Company changed
to Merrill Lynch International Investment Funds.
N.J. Coats, Mr. T. Beck, Mr. G. Bamping and Ms. T.A. Fritot.
With effect from 16 September 2005 the Company was submitted
to Part I of the law of 20 December ZOO2 that implements
Directives 2001/107/EC and 2001/108/EC.
The registered office of the Investment Manager is a t Forum House,
Grenville Street, S t Helier, JerseyJE4 8RL. Channel Islands.
With effect from 16 September 2005 the Company has appointed
Merrill Lynch Investment Managers (Luxembourg) S.A. as its
management company.
5.
As from the date of this Prospectus, Shares are offered solely on
the bass of this Prospectus, which supersedes all previous versions
6.
The Notice Legale required by Luxembourg law in connection with
tnis offer has been filed with the Registrar of the District Court of
Luxembourg
Directors' Remuneration and Other Benefits
There are no existing or proposed service contracts between any of
7.
the Directors and the Company and the Articles contain no express
provision governing the remuneration (including pension or other
benefits) of the Directors. The Directors receive fees and out-ofpocket expenses from the CoTpany. Directors who are not
representatives of the MLlM Group currently receive a fee of
US830,OOO per annum.
Auditor
The Company's auditor is PricewaterhouseCoopers of 400 route
8.
d'Esch, L-1471 Luxembourg.
48 Merrill Lynch InternationalInvestvent Funds
The Investment Manager and the Investment Advisers
The Management Company and the Company have entered into
an Investment Management Agreement with the Investment
DSP Merrill Lynch Fund Managers ("DSPML-FM") provides nonbinding investment advice to the Subsidiary. DSPML-FM is duly
registered with the SEBI as an asset management company to DSP
Merrill Lynch Mutual Fund and as a portfolio manager. DSPML-FM
is a well reputed mutual fund asset manager in India and as of 31
December 2005 had assets under management of approximately
US$l.9 billion.
The Subsidiary is registered as a sub-account of Merrill Lynch
Investment Managers Limited which is an entity registered as a
Foreign Institutional Investor with the Securities and Exchange
Board of India under the SEBI (Foreign Institutional Investors)
Regulations. 1995 and invests in India under the provisions of the
said regulations
10.
The Investor Service Centre
The Investment Manager has entered into an Investor Services
Agreement with Merrill Lynch Investment Managers Limited for the
provision of an Investor Service Centre to provide dealing facilities
and related investor support functions. Other Merrill Lynch local
offices also serve as local Investor Service Centres for customer
enquiries only, the dealing facilities being always provided by
Merrill Lynch Investment Managers Limited.
Appendix C
11
The Custodian
15.
The Company has entered into a Custodian Agreemevt with the
Custodian whereby the Custodian has agreed to act as custodian
of the assets of the Company and to assume the functions aod
responsibilit es of a custodian under the Luxembourg law of 20th
December 2002
The Paying Agents
The Company has appointed the following as Paying Agents'
Austria
RaiffeisenZeitralbank
Osterre ch AG
Am Stadtpark 9
1030 Vienna
The Custodian and Fund Accountant (see paragraph 12 below) is
The Bank of New York Europe Limited, Luxembourg Branch. Its
office is at Aerogolf Ceiter, 1A Hoehenhof. L-1736 Senningerberg,
Luxembourg The Bank of New York Europe Limited was
Belgium
Citibank Bank nv/sa
Boulevard General Jacques 2639
1050 Brussels
incorporated with limited Iiabilmty in Eigland on 9th August 1996
with an issued and fully paid up share capital of fZ00 milllon Its
registe-ed office is One Canada Square, London E14 5AL aod its
ultimate holding company is The Bank of New York Compaiy, Inc
which is incorporated in the United States of America The
Custocian's and the Fund Accountant's principal business activity is
tne provision of custodial and investment administration services
a i d treasury dealing
Germany
Commerzbank AG
Kaiserplatz
60261 Frankfurt am Main
Luxembourg
12
The Fund Accountant
The Management Compaiy and the Investment Manager have
entered into an agreement with the Fund Accomtant whereby the
Fund Accountant has agreed to provide fund accourlt ng. Net Asset
Value determination and setvices related to these functions Subject
to Luxembourg law and regulation the Fund Accountant is ent,tled
to delegate specific funrtions to any other person, firm or company
(with the approval of the Management Company and the
regulatory authority)
(Central Paying Agent)
J.P Morgan Bank Luxembourg S.A.
5, Rue Plaetis, L-2338 Luxembourg
Switzerland
HSBC Private Bank (Suisse) 5.A
Paradeplatz 5
CH-8022 Zurich
United Kingdom
13
14.
The Transfer Agent
The Management Compaiy and the Investment Manager have
entered into a Transfer Agency Agreement witn the Transfer Agent
whereby the Transfer Agent has agreed to provide all necessary
transfer agency functions including appl cat on and transact]on
processing, ma ntainiig the Share register, a i d setvices related to
these functiois
Relationship of Custodian and Fund Accountant with MLlM
Group
The Custodian's arld Fund Accountant's assacgates provide custody
and fund accounting services to Merri I Lynch Investment Managers
Limitec and some of its associates in respect of thelr investment
management business generally Under agreements between
companies in The Bank of New York Company, Inc ("BNY") group
a i d some companies in the MLlM Group relating to the provision
of these sevices, payments due from the relevant companies in the
MLlM Group to BNY companies will be abateo by the fees paid by
the Company to the Custodian and Fund Accouitant in respect of
custodian and fund accountiig services
UBS Warburg (a financial services group of UBS A.G.)
1 Finsbury Avenue
London EC2M 2PP
Attention: Corporate Adion - Paying Agency
16.
The Subsidiary
In addition to the India Fund, certain other Funds may invest in
securities through the wholly-owned subsidiary of the Company,
Merriil Lynch India Equities Fund (Mauritius) Limited. The Subsidiary
is incorporated as a private company, limited by shares. The
Subsid:ary is organised as an open-ended multi-class fund and
holds a Category 1 Global Business Licence for the purpose of the
Financial Services Development Act 2001 and is regulated by the
Financial Services Commission. Mauritius ("FSC"). It must be
understood that in giving this authorisation, the FSC does not
vouch for the financial soundness or the correctness of any of the
statements made or opinions expressed with regard to the
Subsday.
The Subsidiary was incorporated on 1 September 2004, and has an
unlimited life. It is a wholly-owned subsidiary of the Company. The
Subsidiary is registered witn the Registrar of Companies, Mauritius,
and bears file number 52463/CI/GBL. T i e Constitution is availab!e
for inspection at the registered office of the Subsidiary.
Appendix C
records of the Subsidiary, maintains the register of shareholders
and makes all returns required to be made by the Subsidiary under
the laws of Mauritius. The Mauritian Administrator is respons;ble
for all tax filings in Mauritius relating to the Subsidiary
The authorised capital of the Subsidiary is US$ 5,000,000,100 and
is divided into 100 managemeit shares of nominal value US 81 .OO
each, which are issued to the Company; 4,000,000,000 class A
redeemable participating shares of nominal value US $1 .OO each of
which may be issued as A shares ( " A Shares"), which may only be
issued to the Company; and 1,000,000,000 redeemable
participating shares of nominal value US 81 .OO each of which may
be issued to the Company in such classes of participating shares as
The Subsidiary has entered into a Custodian Agreement with the
Custodian and the Company whereby the Custodian has agreed to
act as custodian of the assets of the Subsidiary and the Company.
the directors may determine with such preferred or qualified or
other special rights or restrictions whether in regard to voting,
dividend, return of caplta! or otherwise. Additional classes of shares
may be issued issued to the Company at a later stage in
accordance with the Subsidiary's Constitution. The Subsidiary issues
regstered shares only
The Subsidiary has appointed the Mauritian Auditor as auditor of
the Subsidiary in Mauritius to perform the auditor's duties required
by Mauritius law. The Company and the Subsidiary shall issue
consolidated accounts All assets and liabilities, income and
expenses of the Sdbsidiary are consolidated in the statement of net
assets and operations of the Company. All investments held by the
Subsidiary are disclosed in the accounts of the Company All cash,
securities and other assets of the Subsidiary are held by the
Custodian on behalf of the Company
The board of directors of the Subsidiary may for efficient
management authorise a committee of directors to issue
partscipat.ng shares of the Sdbsidiary on such terms as approved by
the board
Indian Investment Adviser to t h e Subsidiary
DSP Merrill Lynch Fund Managers Ltd
Tulsiani Chambers, West Wing, 11th Floor, Nariman Point,
Mumbai - 400 021, India
The business aqd affairs of the Subsidiary are managed by the
directors. The directors of the Subsidialy are Mr. Geoff Radcliffe,
Mr. Frank Le Feuvre and Mr Jean-Claude Wolter as non -resident
directors and Mr. Couldip Basanta Lala and Mr. Dev Jooy as
resident directors. At any time, the directors of the Subsidiary will
comprise a majority of directors who are also Directors of the
Company. The directors are responsible, inter alia, for establishing
the investment object:ves and policy of the Subsidiary and for
morlitoring the Subsidiary's investments and performance.
The Subsidiary acts solely in favour of the Company and its sole
ob,ect is to carry out activities in favour of the Company and the
Funds.
The Subsidiary complies with the investment restrictions of the
Company
1he Subsidiary has appointed Merrill Lynch Investment Managers
Limited as its investment manager and DSP Merrill Lynch Fund
Managers Ltd to act as its Indian Investment Adviser.
International Financial Services Limited ("IFSL"), MauritiJs has been
appointed by the Subsidiary as its administrator and secretary (the
"Mauritian Administrator") IFSL is a leading offshore management
company incorporated II Mauritius and licensed by the Financial
Services Commission (FSC) to provide advisory and management
services for international businesses
The Mauritian Administrator carries on the general administration
of the Subsidiary, keeps or causes to be kept the accounts of the
Subsidiary and such financial books and records as are required by
law or otherwise for the proper conduct of its financial affairs. The
Mauritian Administrator calculates the net asset value per share on
each valuation day and the subscription price and redemption price
in accordance with the Constitution. The Mauritian Administrator
convenes meetings of the directors, keeps the statutory books and
Mauritian Auditor t o the Subsidiary
PricewaterhouseCoopers
6th Floor, Ceri6 House, Chaussbe. Port Louis. Mauritius
Mauritian Administrator t o t h e Subsidiary
IF$ International Financial Services Limited
IF$ Court, Twenty Eight, Cybercity, Ebene. Mauritius
17.
Taxation of the Subsidiary and t h e India Fund
Mauritius
The Subsidiaryshall hold a Category 1 Global Business Licence for
the purpose of the Financial Services Development Act, 2001 ("FSD
Act") and is liable to tax in Mauritius at the rate of 15% on its net
income. However, the Subsidiary will be entitled to a foreign tax
credit equivalent to the higher of the actual foreign tax suffered or
a deemed tax credit of 80% of the Mauritian tax on its foreign
source income, This will result in a max;mum effective income tax
rate of 3% on foreign source income. The Subsidiary is not subject
to capital gains tax in Mauritius.
No tax on capital gains will be payable in Mauritius on disposals by
the Subsidiary of Indian securities There is no withnolding tax
payable in Mauritius in respect of payments of dividends to
shareholders or in respect of redemption or exchange of shares
held in the Subsidiary.
The Subsidiary has obtained a tax residence certificate from the
Mauritian autiorities and such certification is determinative of its
resident status for treaty purposes. Accordingly, the Subsidiary
qualifies as a resident of Mauritius for the purposes of the
India/Mauritius Double Tax Avoidance Treaty (the "Treaty"). On this
Appendix C
basis. the Subsidiary is entitled to certain reliefs from Indian tax,
subject to the continuance of the current terms of the Treaty
Shareholders are not sub,ect to any wealth, capital gains, income,
withhoding, gift, estate, inheritance or other tax in Mauritius
(except for shareholders do.niciled, resident or having a permanent
establishment in Mauritius)
India
The following are the tax implications on the income earned by the
Subsidiary or as the case may be, the India Fund from Indian
portfolio companies
The subsidiary, or as the case may be, the India Fund, has income
in the form of capital gains, income from dividends and income
from interest
A
1
The tax consequences for the Subsidiary on account of the
application of the Treaty, read with the provisions of the
Indian Income Tax Act, 1961 ("ITA")are as follows
Capital gains resulting from the sale of Indian securities
(including Foreign Currency Convertible Bonds) or Global
Depositary Receipts ("GDRs") or Amercan Depositary
Receipts ("ADRs") issued by Indian companies w II not be
subject to tax in India, provided the Subsid ary does not have
a permanent establishment in India, however, the purchase
ard sale of Indian securities in a recognised stock exchange in
India is subject to a Securities Transaction Tax ( S T ) as
discussed below This tax has been receitly introduced by the
Finance (No 2) Act, 2004,
2
3
B.
Dividends on hares received from an Indian company on
which dividend distribution tax has been paid are exempt
from tax in the hands of the shareholders Thus, any deviaends
distributed by the Indian Fortfol o companies are not be
subject to tax in India, provided tqe company paying the
dividends pays a dlvidend distribution tax of 12.5% (plus
surcharge and education cess '),
Interest income from Indian securities IS taxed at the rate of
20% (plus surcharge and education cess); (if the interest
income arises out of the Subsidiary's subscription to Foreign
Currency Convertible Bonds, the interest will be taxed at tqe
rate of 10% (plus surcharge and education cess)),
Dividends on shares received from an Indian company on
which dividend distribution tax has been paid are
exempt from tax in the haids of the shareholders. Thus,
any dividends distributed by the Indian portfolio
companies to the Subsidiary or, as the case may be, the
India Fund are not subject to tax in India, provided the
company paying the dividends pays a dividend
distribution tax of 12 5 % (plus surcharge and education
cess as applicable),
Interest income from Indian securities is taxed at the rate
of 20% (plus surcharge and education cess as
applicable); (if the interest income arises out of the
Subsidiary's or, as the case may be, India Fund's
subscriptio? to Foreign Currency Convertible Bonds, the
interest will be taxed at the rate of 10% (plus surcharge
and education cess));
Capital gains from the sale of Indian securitses heid for
12 months or less is taxed as short-term capital gains at
the rate of 30% (plus surcharge and education cess).
However, if the short-term capital gains arises on the
sale of a listed security in a recognised stock exchange in
lidia, the rate of tax shall be 10% (plus surcharge and
education cess) provided STT as discussed below has
been pasd on such transfer,
Capita' gaiis from the sale of Indian securities held for
more than 12 months are taxed as long-term capsta'
gains at the rate of 10% (plus surcharge and education
cess). However, if the long-term capital gains arise on
the sale of a listed security in a recognised stock
exchange in India, the same will not be subject to tax
provided the S T as discussed below has been paid on
such transfer
All Indsan taxes mentioned at A & B above are exclusive of the
currently applicable surcharge of 2.5% (for companies) 01 the
Indian tax and education cess at the rate of 2% on tax arld
sdrcharge. In respect of dividend distribution tax mentioned in A.2.
and B(i) above, the applicable surcharge is 10% on the Indian tax.
The Subsidiary, or, as the case may be, the India Fund is liable to
pay STT. The rates of S T r with effect from 1 June 2005 are as
follows
The tax consequences for:
0.1 % on purchase of equity shares in a company or units of
e q d y oriented funds in a recognised stock exchange in India
The Subsidiary (in the event Treaty beneftts are not
avai!able to the Subsidiary); or
(11) The lndla Fund.
0 1 % on sale of equity shares in a company or units of equity
oriented funds in a recognised stock exchange in India
(!)
are governed by the provisions of the ITA which are as follows:
' Education cess is an additional surcharge on income-tax and surcharge,
introduced by the Finance (No.2) Act, 2004 and continued under the Finance
Act 2005.
0.02% on sale of equity shares in a company or units of
equity oriented funds in a recognised stock exchange in India
where the contract for sale is settled otherwise then by the
actual delivery or transfer of share or unit.
Appendix C
0 0133% on sale of derivatives in a recognised stock
exchaige in India.
18.
The Investment Manager is entitled to management fees based on
the Net Asset Value of each Fund, as shown in Appendix E.
0.2% on sale of units of an equity oriented fund to the
Mutual Fund.
19.
The Custodian receives annual fees, based on the value of
securities, which accrue daily, plus transaction fees. The annual fees
range from 0.01 1% to 0.608% per annum and the transaction
fees range from US$13 to US$157 per transaction. The rates for
both categories of fees will vary according to the country of
investment and, in some cases, according to asset class.
Investments in bonds and developed equity markets will be at the
lower end of these ranges, while some investments in emerging or
developing markets will be at the upper end. Thus the custody cost
to each Fund will depend on its asset allocation at any time.
In the event the gains on sale of shares is taxed under the head,
"Profits and Gaiis of Business or Profession" the Subsidiary (in case
the Subsidiary is held to have a permanent establishment in India
and sucn gains are attributable to the permanent establishment) or,
as the case may be, the India Fund, will be liable to tax at the rate
of 40% (plus surcharge and education cess as indicated above)
Credit for S
n paid will be available against income tax on income
arismg from transactions on which STT has been paid
The Transfer Agent receives annual fees calculated according to (a)
the number of holdings (ranging from US89 to US825 per holding),
(b) transaction processing (ranging from US82 to US813.35 per
transaction, depending on the transaction type), and (c) Fund/Share
class annual maintenance fees (ranging from US82.000 to
US820,OOO depending on the number and type of Fundshhare
Classes).
Special Risk Considerations for the India Fund
The India Fund invests through the Subsidiary, which invests in
Indian portfolio compaiies under the SEBI (Foreign Institutional
Investors) Regulations. 1995. The India Fund may also invest
directly or through its Subsidiary in foreign securities issued by
Indian companies.
Investors should note t i a t the Subsidiary relies upon the provisions
of the Treaty to minimise, so far as possible the taxation of the
Subsidiary No assurance c a i be given that the terms of the Treaty
will not be subject to review in the future and any change could
have a material adverse effect on the returns of the Subsidiary The
repeal or amendment of the Treaty, a change in the Mauritius or
Indian domestic tax laws, or a change of policy of the Mauritian or
Indian tax alrthorities may adversely affect the tax treatment of the
investment of the India Fund and/or the taxation of the Subsidiary
and, as a coisequence, the value of the India Fund's shares There
can be no assurance that the Treaty will continue and will be in full
force and effect during the life of the Subsidiary
The Fund Accountant receives annual fees calculated according to
the Net Asset Value of each Fund, ranging from 0.01 5 % to
0.023%.
20.
the initial charge of up to 2% of the price of the Class D
Shares issued, where levied;
the initial charge of up to 3% of the Net Asset Value of the
Class E Shares issued, where applicable and levied,
The current status of the Treaty is that following the issue of
assessment orders agaiist certain Mauritian resident companies
deriving benefits under the Treaty during 2000, the Indian Central
Board of Direct Taxes ("CBDT") issued Circular 789 (the "Circular")
on 13 April 2000 The Circular clarified that a certificate of tax
residence issued by the Mauritian tax authorities was sufficient
evidence for accepting the status of the residence as well as
beneficial ownership for purposes of applying the Treaty The
Supreme Court has recently upheld the validity of the Circular
Accord ngly, the Subsidiary should be eligible to claim the benef,t
of the Treaty It is to be noted that a curative petition has been filed
in the Supreme Cou? against the above order The Supreme Court
has not yet admitted this petition The Directors will keep under
review the progress of this petition and may at any time implement
a poiicy to provide for any potential tax liability in the price of the
Shares Any such provision will be affected in the Net Asset Value
of the Fund
The Investment Manager, in its capacity as Principal Distributor, is
entit:ed to receive:
the initial charge of up to 5 % of the price of the Class A
Shares issued, where levied;
the CDSC on redemptions if the Investment Manager is acting
as distributor:
any delayed initial charge on Class A or Class E Shares,
respectively;
the Investment Manager's charge on unduly frequent
converSons of any Class of Shares (see paragraph 20 of
Appendix B); and
any distribution fees.
21
Subject to the approval of the board of Directors, the Maiagement
Fee for any Fond may be increased up to 2.25% by giving
shareholders at least three months' prior notice. Any increase to
the Management Fees above this level would require approval of
shareholders at an extraordinary general meeting. At least one
Appendix C
moith's notsce will be given to siareho'ders of any increase in the
28
22
23
The Inbestment Manage- is entitled at its sole d,scretion aqd
witimut recourse or cost to the Company to rebate al: of or part of
its fees and charges and to pay com-nission to a i y investors
(includiig discounts on charges to d rectors a i d emp'oyees of the
livestment Manager and its affil:ates) or i t s d str,butor or agents in
respect of any subscriptions fo: redemption or holdings of, Shares.
The Company bears al expenses mcurred :n tne operation of the
Company (wiether incdrreo direct!y or by the Management
Comptny, t i e Custodian, t i e Pay ng Agents, tne Fuid Accountant.
the Principal D,stributor, the Transfer Agent, the Investment
Manager and its affiliates, or the Investor Service Ceitre),
including. without I:m,tation, taxes, expenses for legal and a m t ng
services, costs of prirlting proxies, share certificates, shareiolders'
reports and statemerlts, prospectuses a i d other offering
documeits and other require0 documentation. the expenses of
iswe anc redemption of Shares and paymeit of dividends, foreign
exciange costs arising in the calculation of the dealing prices in the
addit,oial Dea:iqg Currencies, registratioi fees dile to supervisory
authorities n va':ous jurisd ctions and otner re'ated expenses. fees
Advisers geierally seek reasoiab'y competitive comm ssion rates,
the Company does not necessari'y pay tne lowest c o n m won or
spread available In a nuTber of oeve:oping markets, commissions
are fixed pursuant to local law or regJlation and, therefore, are not
sub,ect to negotiation
29.
When arranging traisactions in securities for the Company,
cornpalies in t i e ML Group may provide secu:it:es brokerage,
foreign exchange, balking and other services, or may act as
pmcipal, 01their usilal t e r m and may benefit therefrom.
Cornm ssions wi:l be paid to brokers and agents in accordance with
the re evait market practice a i d the benefit of any bulk or other
commission discounts or cash comm:ssions rebates prowded by
broke.5 or agents will be passed on to tbe Company. The sevices
of ML Group compan:es will be used by the Investment Adv:sers
where it is coisidered appropriate to do so provsded that (a) their
covrniss'ons and other t e r m of business are generally comparable
bviti those ava lable from Jnassociated brokers and agents in the
markets concerieo, a i d (b) this is consistent with the above pol cy
of obtaiiiig best net results. Consistent with the above policies, it
s ant:cipated that a proportion of the Company's investment
trarlsactions b d ' be executed through ML Group broker dealers and
that they w:l be amongst a relative:y smal' group of global firms
w h i c ~may each be ass grled a larger pwport orl of transactions
than the proportion ass.gied to any other firm.
30.
Sub,ect to the f o w p n g , and to a i y restrictions adopted by the
Directors or set fortn in the Articles, the Investment Manager, the
Investvent Advisers and any otier ML Group company, and any
c rectors of the foregoing, may (a) have a i interest in thc Company
o* in any traisdct,on effected w t i or fo- it, or a relations9ip of any
description w:tn any ot;ler person, which may involve a potential
and out-of-pocket expenses of tile Directors of the Company,
insxance, interest, listing and brokerage costs, and t i e costs of
Computation ana pilbkation of Net Asset Values a i d prices. T i e
expens-s borne by the Company also include costs incurred by
distribLtors and agents in complying w th local regulatoy
reqilire-nents and other costs speciflcal y incupredby them w:th the
approva' of the Directors.
24
If a Fund is closed at a time when any expenses previously allocated
to that Fund have not been amortised in full, the Directnrs s ~ a l l
determine how t i e outstanding expenses s'lould be tfeated. a i d
may, where appropriate, decide that the outstanding expenses
should be met by t i e Fund as a 1:qu:dation expense.
25
26
Sub~ectto any policies established by t i e Directofs, when arraiging
investmeit traisact ons for the Company, the livestment Adv seis
wil seek to obta n t i e best net results for the Company, taking into
account sJch factors as pr ce (including the applicable brokerage
commiss 07 or dealer spread), size of order, difficu:ty of execution
and operational facilities of the firm involved and tCle firm's risk in
positioning a block of securities Therefore, whilst the Investment
rates of other fees and charges specified n this PmSpectus. unless
prior shareWder consent .s required under t r e Company's Art clcs
w h e i at least one monti's wtice w:l be given fro-n the oate of
such consent.
Mamtiai Administrator, estimated at apprormateiy US$ 36.800
per year, are borne by the SJbsiaiary There are no rnanagemert
fees borne by t i e Subsic ary
confl ct with their respective duties to the Conpany, and (b) deal
with or otherwise use the services of ML Group co-npaiies in
connection w t h the performance of such duties; a i d none of tnem
w:l be I ab'e to accomt for a i y profit or remuneration derived
from so doiig.
The India Fund wi'l be lauiched upon its merger w th the Mefrill
Lynch Specialist Investment Funds - I d a Fund and the
(a)
Toe operating costs of the Subs diary iiclud ng t i e fees for the
unamo-ti7ed expenses of that fund will be carried over to the Ind a
Fund as part of the merger process.
Relationships with the M L Group
27.
The illtimate holding company of the Marlage-ncnt Company, the
Investment Maiager and the Investment Advisers :s Merrill Lyncl &
Co., Inc., a company incorporated in De:aware, USA
For examp!e, such poteitial conf,icts may arise because.
the relevant ML Group company undertakes business fo*
other clients,
(b) any of the relevarlt ML Group company's directors or
employees is a director of, holds or deals in securities of, or is
othewise interested in, any company the secur t.es of whici
are held by or dealt in 01behalf of the Company,
Merrill lynch liiternational lnvcstmcnt Fu~ids 53
Appendix C
(c)
the transaction relates to an investmeit in respect of which
the relevant ML Grodp company may benefit from a
commission. fee, marc-up or mark-down payable otherwise
than by the Company,
(d)
a ML Group company may act as agent for the Company in
any connecteu persons of FAM L.P. provided t i a t the brokerage
rates are not in excess of customary institutiona full-service
brokerage rates
33
For mestments in t i e units of otier UCITS and/or other UCls that
are managed, direct y or by delegat on, by any ML Group compaiy,
no maiagement, subscription or redemption fees may be charged
to t i e Co-npany on its investment sn the units of such other UCITS
and/or other UCls
34
With refereice to Paragraph 3.5.of Appendix A, the Company has
appoiited Merrill Lyich Investment Managers, LLC ("MLIM LLC"),
hav ng its reg,stered office at 800 Scuddm Mill Road, Plaiqsboro.
08536, New Jersey, USA as its stocilending agent MLlM LLC has
the discretion to arraige stock loans with highly rated specialist
financial inst tutions (the "counterparties"). Such counterparties
can iiclude associates of MLlM LLC. Collateral, in the form of cash,
could be subsequent'y invested in money market ntruments with
a rat:ng of A-1 or eou,valent. Collateral IS marked to market on a
relation to transactions in wh:ch it is also acting as agent for
the account of other clients of ML Group companies;
( e ) a ML Group company may deal in investments and/or
currencies as principal with the Company or any of the
Company's shareholders,
(f)
the transact,oi is in units or shares of a collective iivestment
scheme or any company of wh ch any ML Group company is
tile manager, operator, banker, adviser or trustee:
(9)
a ML Group company may effect transactions for the
Company involving placings arld/or new issues with another
ML Group company w k h may be acting as principal or
receiving agent%commissmn
31
As described above, securities may be held by, or be a i appropriate
iivestment for, the Company as well as by o'for other clients of
t i e Investment Manager, the Investmeit Advisers or other ML
Group companies. Because of different objectives or other factors,
a particular security may be bought for one or more sJch clients,
when other clieits are selliig the same secu' ty If purchases or
sales of securities for the Company or such c: ents arise for
consideration at or about the same t me, such transactions wII1 be
made, insofar as feasible, fof the relevant clieits i i a manner
deemed equitable to al There may be c.rcumstances when
purchases or sales of securities for one or more ML Group clients
have an adverse effect 01other ML GroJp clients
32.
With respect to the Filids (or port on of a Fund) for which
it
provides investmeit management and advice, FAM L.P. and any of
its coinecteo persois may effect Pansactions by or through the
ageicy of aiother person w : t i whom FAM L.P. and any of its
collected persons iave an arrangement under which that party
wi I from t me to tmme provide to or procure for FAM L.P. and any of
its connected persons goods, services or other benefits such as
research and advisory services, compder hardware associated with
specialised software or research sewices and performance measures
etc., the nature of which is such that their provision can reasonab:y
be expected to benefit the Funds as a whole and may contribute to
a n improvement in the Fuids' performance a i d that of FAM L.P. or
any of its connected persons in providing sewices to the Funds a i d
for which no c rect payment is made but instead FAM L.P and any
of its coinected persons undertake to place bus:ness w t h t i a t
party. For t i e avoidaice of doubt, such goods and sewices do not
incldde travel, acco-nmodation, enterta nment, general
adm:n.strat:vegoods or services, general office equipment or
prern:ses, membersnip fees, employee salaries or direct money
payments. Soft dollar commissions may be retained by FAM L.P. or
cla,ly basis and stock loans are repayable upon demand. At the cost
of tfie Compaiy, MLlM LLC receives remuneration n re'ation to its
activities above. Such remunerattoi shall not exceed 50% of the
revenue from the activities.
Statutory and Other Information
35
Copies of the fol ow8ngdocumeits (together w t h a ceqif eo
translation thereof where re'evant) are available for iispection
during usual bJsiness hours on any weekday (Saturdays and PJblic
Holidays excepted) at the reg stered office of the Company arld at
the offices of Merrill Lyich Investment Maiagers (Luxemboxg)
S A , 60 route ce TrPves, L-2633 Senningerberg. Luxembourg,
(a) the Articles of Association of the Company, a i d
(b) the material contracts entered into between the Company
and its functionaries (as varied or substituted from time to
time).
A copy of the Articles of Association of the Company may be
obtained free of charge at the above addresses.
Appendix D
Appendix D - Authorised Status
Austria
Tne Compary has no:ified tbe Federal Iv1inis:ry of Finarce of ,ts ment.on to
distribbte its Shares ir Austria under Article 69 of the Bank r g Aci in
connectioi w th Ar!icie 36 of t i e Irvestment Fund Act 1993 T i i s Prospectils
is available in a Germai laiguage vecs.on. which :nclLdes add:riona!
sewices of Ceitralising Correspondent ir France This Prospectus is available
in a Frerch laigkage version tha: inc.ddes add.t:onal informatior for Frencb
inves:ors Tie additional informtion for F w c h inves:ors shou'd be read in
corjLrct 01wit+ the Prospectus Docmeitatlor! relating to tne Company
car! be irspected at t i e off:ces of Crbdit Agr cole Indosuez, 91-93, bodlevard
iiformatioi for Austriar investors
Pasteur, 75710 Pa'is Cedex 15, France, during normal business hours a i d
cop'es of the docLmenta:ion can be obtained from them if required
Bahrain
App*oval has teen granted by t i e Babwn Monetary Agency to market :lie
Company in Bahrdii, shbjec; :o its regJ ations on the G e r m Supervision,
Operation ard Marketing of Collect ve Investmeit Scbemes The Agency
takes ro respois billty for n e fsnarc al soLrdiess of :+e Compaiy or for the
correctless of any sta:emen: made or expressed in relaiior :beveto
Belgium
The Compaiy ias been reg.stered witb the Baik:rg ard Finance
Commission in accordaice with Article 130 of t i e Ac; of 20 July 2004
relating to financia! transactions a-d the fiiaicial ma-kets. Tqe Frerlcb
dis:,ibilted in Be,gih-n includes addi:ional
IangLage version of This P~o~pcc:~s
information for Beig an inves:ors
Brunei
The Compary's adm!r..stra:or in B w e i is The Hong Kong ard S i a n g k
Baqking Corpcration L,mited, Brures Darussalam. who holds a license to
d stribUte Shares of the Company pursuait to Section 7 of the Mdtual F-rds
Order 2001. Sha-es may only be pilblicly d st:lbu:ed
Company's Brune. admir?istrator
ir. Brunei by :be
Chile
Tne Compary i a s obtained :ie reg st'acion of certain Furds with the Risk
Classif cation Comm:sslon ir Chi!e following a i appiicatioi by a local
pensior: f m d manage. The Compaiy's Shares may only be so'd :o certa I
Chilean pens:oi funds
Denmark
Approval has beei granted to the Compdiy by :be 32- sh F,narcial
Supervisory Autho- ty (Fioaistiliyie:) in accorddoce w :b Sections 11 avd 12 of
the Danish Act on lrvestment Associatiors. Special-Purpose Associa:ions a i d
other Collec:vf 1nves:ment Sciemes etc. (Coiso':dated Act r o 768 of 19 July
2005) to market its Snares to inst.tutional iivestorj in Denmark Tie simplified
prospectus as well as certain informatior, on taxation is available in Dan:sh
Finland
The Cornpaiy has notified the Fira-cia1 Supevis 01Abtborlty in accordarcf
Germany
T i e requiremeiis of Sectsoll j c of the Germar Foreign 1ives:mert Act have
beei met ard :be Company's Shares may be distr buted pJbliCly ir the Federa!
RepJb' c of Ger-nary Triis Prospec:us is available in a Ge-mal IaigJage
ve's o r w b cb ircludes additioial iiformation for German irvestors
Gibraltar
T i e Company has obtaired the status of a recognised scheme under Section
24 of the Gibraltav Financiai Sewces Ordinance. 1989. By v r:ue of a
cor.fsrmation from :be Financial Services Commiss.on the Company may
pilbl.cly d.5trihute its Shares in Gibraltar
Greece
Approval bas been grarted to the Company by the Capital Maritets
Commit:ee ,n accordaice w i t i the procedures of Articles 49a and 49b of
t i e Law 1969/1991, to distribL:e 1s: Siares 'n Greece This Prospecx is
avahble :n a Greek IangLage trans'ation It must be noted :hat the re'evant
Capital Markets Commitxe guide!lies provide :ha: "Mutual Funds do not
have a guaranteed return and that previous perfor-nance does not secLre
futxe Derformance"
Guernsey
Corsei: Jide- t i e Cor:rol of Borrowing (Bailiwck of Guernsey) 0.d i a i c e s ,
1959 i o 1989, has beer ob:a red to :he t rtulatim of this Prospects in
Gmnsey Neither tne GJevisey Finarcial Services Commiss on nor the States
Advisory a i d Flnaice Committee takes any resporsibility for the financial
souqdiess of t i e Company or for t i e correctness of any of the statemeits
made or opinlons expressed wi:h regard to it
Hong Kong
T?e Co-npaiy is autiorsed as a mutLa! fdrd corporation by tbe Securities
a i d Fdtbres Commissior r H o i g Korg. Tbe Commissm takes no
responsibility for tbe financia' SoJndneSS of any schemes or for the
cor:ectiess of any staicments made or opiniors expressed in this Prospectus
This Prospectus is available for Hong Kong res!der?ts:I? bo:h English and
Chinese 1ives:ors us i g t i e English language Prospec:us shoirld read tbe
Prospectus ir conjunction witn the Hong Kong addendlr-n, which contaiis
with Sectior 127 of the Act on Commor L i d s (29 1,1999/48! and by vlELe of
coif rmaIior from :be Finarclal SJpervisor Ailthority the Company may
publ:cly d,str bute its Shares ir Fiiland TI s Prospectus a i d all o:ier infoqatioi
addi:iona' rfo*-nation for Hong Kong residerts This additiona: nformaton
is also colla ned in the E3glish/Ch nese hmmary of Prospectils :bat is
and documer:s that t i e Company mJsi publ,sh in LuxemboL:g pLrsmnt to
applscable Luxembourg Law are traislated into Finnishand are available for
Fiinish investors at the offices of the appointed d.stribu:ors in Finland
ava:lable for Hong Kong Irvestors who are considering applyiig fov Class A
Slares other tbav :hrougi M e v I Lynch l h e Company's represen:ative in
Hony Kong is Merril' Lynch Investment Managers (Asia) Limed.
France
[he requirements of Genera: Regulatior of the "Autofit4 des Marches
Fmnc ers" (:he "AMF") hav i g beer: me:, the Company bas been ahtk,or.sed
to market its Shares ir Fracce Cred,: Agrico'e Indosmz w:ll perfovn the
Ireland
The reqdsrewits of Regulatiois 86 and 90 of the European Commirnit.es
(Urdertaiirgsfor Collective Investmcn: ir lransferable Securi:ies)
Regl;latioris. 1989 havirg beer met, ?he Ceitral Bank of Irelard bas
Merrill Lvnch Iriternaional Investment Funds 55
Appendix D
corfirrned that :he Company may market iis Siares in Ireland (subject to the
provisiors of RegLIation 87) AIB/BNY Fund Management Limited wi I
perform the serv ces of fac lity agert lrelaid DocLmentation relatiig to
the Company c a i be inspected a: AIB/BNY FJnd Maiagement Limited's
offices at Guild House, Gu Id Street, IFSC, Dublin 1, Ireland during normal
bus ress hours a i d copies of the docLmenta:ion cai be obtained from them
if reqJ red AIB/BNY Fbrd Managemer: Limited will also forward any
redemption or d v deod paymen: reqJests or any compiaints relating to the
Compary to the Transfer Agent
Iceland
The Ccmpany has notified :he Icelard8cFinancial SLpervision Authority
(FjArrn6laeftirliti ) ir acco*daice w ' t i Section 43 of the Act No 3012003 on
Unde-:akings for Co!lecbve Investmei: i i Transferab!e Securities (UCITS) and
Iivestwnt Fupds rega-d'pg foreigi .nvestme?t undertakings' rights to offer
UCITS-funds in Iceland. By virtue of copfirmation fro71 tne Icelandic Finaicial
Superv.sionAutkority the Compaiy may marxet and sell its Shares in
lcelaid 1his Prospectusand all o:kr information and documents that the
Company must publish in LuxemboLrg pursuant to applicable Luxembourg
Law are no: translaied into Icelandic as the Compary's Shares are only
intended to be offered to professioia ir.vestors in Icesand
Italy
The Company has ob:a,ned the reg Stration in Italy of certain Funds from the
Commissione Nazionale per le Socie:A e la Borsa (CONSOB) and from the
Banca d'ltalia puwant to article 42 of Legislative Decree no. 58 of 24
Febwary 1998 acd implementirg reyulat;ons The offering of the Fuqds can
only be carried out by the appoiited distribLtors indicated in the Italian
wrapper (New Subscription Fo-m) in accordance with the procedures
ind cated there n. The Italian t:aislation of th s Prospectus is available fov
Ita'ian investors togetber with rhc Italian wrapper and the other documents
ind cated IF the Italian wrapper at t i e off ices of :he appointed
correspordent bank of the Company
Jersey
T k consent of the Jersey Financial Services Commission (rke "Commission")
has been obtained pl;rsuai: to the Control of Borrowing (Jersey) Order
1958, as amended, :o raise money in t3e Is!and by the issue of Smres of the
Company and for t i e d stribution of t i s Prospectus The Commission is
protecxd by the Con;rol of Borrowiig (Jersey)Law 1947, as amended,
agains: liability ar sing from the d scbarge of its funct OFS under That law
Korea
A registration statement for the d str batior of Shares in the Compary to the
pub1c n Korea ?as been fled w tn the Fmrcial Supervisory Commissioi in
accordance witb the Indirect lrvestment Assets Management Bilsiness Actof
Korea ard its regular ons thereunder
Macau
Authorisat o r is givei by :he Aitondade Moneta a De Macau fav the
advert sing a i d ma*ke:iiy t i e CoTpany and certa n registered sJb-funds in
MacaL in accordarce wi;b Article 61 and 62 of Decree Law No 83/99/M of
22 November 1999 T? s Prospect&
Englisi and Chinese
is
available to MacaJ residents in both
Malta
The Compaiy bas been au:?orised as a Collective Investment Scheme by the
Ma:ia Firanca' Sevices Certre ("MFSC") in respect of cerrain Funds. Such
aJthOriSatiOn does not cons;itute a warranty by the MFSC as to the
performance of the Compaiy and the MFSC shall not be liable for the
performance 0: default of t i e Compaiy.
Netherlands
Tie Company has notified t i e Netherlands Author,ty for the Financial
Markets (Autorite t Financie e Markten) in accordance wi:n section 17 of tine
lnvestmerts lrstitutions Act (Wet toezich: beleggingsirstel ,ngen) and by
virtue of a coifirma!ion from the Netherlands AuthoriTy for the Financia:
Markets may offer iis Siares to the pbblic in the Ne+er!aqds. This
Prospectus and al other information ard documents tbar tbe Company mils:
pliblish in Luxembourg pursant to appiicable Luxembourg aws are
translated into DL:ch aqd are held ava.lable by Merri:l Lynch N V, the
representative of the Company in the Netherlands
Norway
Tie Company has notified t'le Banking. Insurance ard Securities
Commission of Norway (Kredittilsynet) in accordance with the Secur,ties
Fbnds Act of 1981 and the Regulation of 1994 regarding foreign investment
Lrdertakngs r:gh:s to offer UClTS-fundsfor sale in Noway. By virtue of a
confirmation :ettev from the Banking, lnsilrance and Securities Commissloi
dated 5 March 2001 tke Company may market ard sell its Shares ir Norway
Peru
The Shares of the Covpany will pot be registered in Peru under Decreto
Legislat vo 862 Texto Unico Orderado de la Ley del Mercado de Valores, as
amended, and m y orly be offered and sold to irstitutiona! mves:ors
pursuar: to a p7iva:e place-nent T i e Compaiy bas obtained registration in
Pew of certain Funds with the Superintendeicia de Eanca, S e g n s y AFP
pursuart to Dec'eto SJpre-no 054-97-EF Texto Unico Ordenado de la Ley del
Sistema Privado del Fondo de Pers ones, as amended, and tlle rdes and
regdations enacted thereunder
Poland
The Company has notifed the Polish Secu*ities and Exchange Commission
(Komisja Papierow Wartokiowych i Gield) of its intenbon to distribute its
Shares in Poland wder article 253 of ar Act on inves:-nert funds (Dz U
04 146.1546). Tb,e Company has establ shed its represenwve and paymert
ayen: in Poland The Compary is obliged to publish i i t i e Polish langmge
t h s Prospectus, s,mpl fled version of Prospectus, annlial a i c semi-annilal
f rancial reports and other documents ard informavoi required by tbe
provisions of laws of the sta:e where it maintains its head office. The
Company d.sPibutes its Shares in Polaid by authorised distributors opiy.
Portugal
In Portugal, the Coms20 do Mercado dos V a l o w Mobilidrios bas issued
nct f:ca:ions of no objeciion to the marketing of certain Furds by several
dis:r bJtOrS (according to :he 1,s: of Funds contained in the respect,ve non
objecr on rotif!cations) wi:h wbom the Principal Distributor nas ertered into
disrr bJtion agreemerts
Appendix 0
Singapore
T k offer or :iditation of Snares of the Company wkich is :he sub,ect of tbis
Prospectu is cdy allowed :o be made i o accredited rvestors acd r o t the
retail pdblsc in S ngapore. Moreover, the P'ospectus is ro: a prospecu as
defined in the Securit-esand FutLires Act, Chapter 289 of Yrgapore (tbe
"SFA") Accordingly, sta:;ltoiy liability under the SFA in 4 a t l o i to the
content of prospectilses would not apply. You sioJ'd cons der carefully
whether the irvestvent is suitable for YOL.
The Company is regulated wde- Pa-: I of the Luxembourg Law of 20
December 2OCZ (The "2002 Law"), as ameided. re!ating to uwlertakings for
col:ect ve .rvertment a r d is silbject to t k sl;pervis.on of t k Comrn ssion dc
Surveiilaice dil Secteur Financier (the "CSSF"). The cortact detalls of thc
Luxembourg CSSF are as follows
Address:
1 IO, route d'Arlon
L-2991 Luxembodrg
This ailthorisation is ro: to be corsidered as a posit ve assessmei: made by
tkis sJperv:sory author :y of t i e qJa!i:y of the Shares offered for sa:e.
The Inves:*nect Manager of the Compaiy, Merrill Lynch Investment
Managers (Chamel Islands) Limited, is reghted by vie Jersey Financ al
Services Commission. The coitact details of the Jersey F 7ianc.a' Services
Commlssioi a'e as follows
Address.
PO Box 267
Nelson HoJse
David Place
S t Helier
Jersey, JE4 8TP
Cianrlel Islands
This Prospectus has r o t been reg:stered as a p-ospectus with the Monerary
AL;:hority of S:igapore. Accovdiigly, This Prospectus and a i y othedocLment or material II correcion w ? t i e offer or sale, or invitatioi foe
sdbscr,pt on or pnhase, of Shares may ro: be ci7cula:eti or d:smbbted, nor
may Shares be offered or sold, or be made the subject of an iivitation for
subscription or purchase, w+et+er directly or ind rectly, io the plibl c or any
member of the pLbiic in Singapore other than (,)toan iqstit,itloial ii-ves?or
specified in Sectior 304 of the SFA, (11) to an accred ted irvestor, a i d in
accordance w:th the coqdiiiois, specified in Section 305 of the SFA or (11 )
o:krwise pJwant to, ard ir accordarce with the copdit!ois of, ary orhe,
applicable prousion of tne SFA.
Spain
The Company ias obtained the reg stratloi of Class E Snares of certa.3
Funds w t h the COT sidn Nacioral del Mercado de Vzlores in Spaii Class E
S h e s of t h e Funds may be dis:ribd:ed to :he pJblic in Spain twoilgh
d st-ibLitors appointed by :be Priicipal Distributor.
Sweden
The Compaiy has notifled the Financial Supervisoy Auriofiiy i i accordance
with Section 7 b of :he Securities h i d Act (1990.1114) and by v rtue of a
conf:rmation from tne F1narc:a' SJpervisory Adthority thc Compaiy may
pJbl,cy d,st.ibute its Spares T Sweder
Switzerland
The Swiss Federal Banking Commissioi has authorised Merri:, Lynch
1nves:mert Manage's Limited (Londor;). Zurich Branch. as ti-e Company's
Sw!ss rep-esertat,ve, :o offe- and d.stribAe the Shares of each of t k
Company's Fwds !n or from Switzerland in acco-darce with Article 45 of t k
Swiss Federal Law on Investment Funds of 18th March 1994. A German
language versioq of this Prospectus is available which also inclLdes the
additional informa:ion for Swiss Investors ir.Appendix F of th,s Prospectus.
Taiwan
Tne Compaiy h s obtained t k regismtion of certain Fmds with the
Sec&ties a i d Excbarge Covm,ssion ("SEC") in Ta:wan. fol,owing an
applicaton by a local securities investment corsu!t:ig en:e*prise ("SICE")
Tne Shares may be dis:r bdted under the rules of the SEC and in accordance
w i t i the Secur::ies a i d Exchaige Law Shares may be recommended by the
SICE for prchase by its custcmers or directly to customers of au:horised
baiks.
United Kingdom
The cortercs of this P'ospectLs have been approved solely for the purposes
of senioi 21 of t i e UK Finaicial Services and Markets Ac: 2000 (tie "Act")
by the Compaiy's UK Distributo:, Merril Lynch Investmer: Managers
Lim.:ed, 33 King WilliaT Street, London EC4R 9AS (which is regulated by tb,e
Financial Services Auihor ty ir the conduct of investment business ir the UK).
The Compxy has ob:air;ed t i e status of "recogiised scheme" for :he
purposes of the Act Some or all of tke protecrions provided by the UK
regL atory system will not apply :o !nvestmen;s in the Compacy
Compersa::on mder the UK lrvestors Compensat,on Scheme will geperally
r o t be ava lab e. T i e Compaiy provides the facilit es requ red by the
regulations goveriing S J C ~schemes at the offices of Merri:l Lynch
Investment Managers Limited. UK bearer shareholders should contact the UK
Distributor for the arrangements that wil! apply to them. An applicant for
Shares wil no: have the r ght to caicel his appl cation under tbe UK
Findrcial Services Authority Corduci of Business Rules. Further details on
Merri Lynch Internzt,onal 1nbes:ment Funds can be obaned from the UK
D stribLror's B-oie. S~ppor;Desk in Lorrdon, telepione, 08457 405 405
USA
The Shares will not be registeped under the US Securities Act of 1933, as
aineided (the "Securities Act") a i d may no: be directly or ind,rectly offered
or so'd in the USA or acy of its terri:o*ies or possewons or areas subjea to
1s: jJr,Sd ct on or to or for the benefir of a US Person. The Company will rot
be registered Lider tne US llvestment Company Act of 1940. US Persors
afe not perm:t;ed to own Shares. Attention is drawn to pavagraphs3 ard 4
of Appendix B which specify certain compulsory redempt,on powers and
define "US Person"
Generally
Tne d st. b W o i of t?:s Prospect& ard the offemg of the Shares may be
aJ:horised
restr c;ed in certa n other Iurisdictions. The above information
is for genera' 9.1 dance only and it is the responsibility of ary persons i i
possession of this Prospectusand of any persons w,shing to make
07
appl:cation for Shares to nform themselves of. and to observe, all appl,cable
laws a i d regulations of dry relevai: jurisdict ors
Appendix E
Appendix E - Summary of Charges and Expenses
Class A
Clars 3
Class C
Class D
Clarr E
Clasr J
Class Q
Class x
5 00%
0 00%
150%
G OG%
150%
1 00% 4 00% to 0.00%
0 00%
1.50%
1.25% 1 00% to 0.00%
2 00%
3 liO%
C.7556
0O G I
0.00%
150%
0 5G%
0.00%
0 00%
0O W
1
0.00%
0 00%
0 00%
1 00% 4 OG% to 0.00%
0 OC%
0.00%
0 00%
0 00%
Class A
Class 8
Class C
5 0040
0 00%
0 00%
.om
1.OOY"
1 GO%
1 00%
0 00%
0.00%
1 00% 4.OG% to 0.00%
1 25% 1 00% to 0.00%
C!ass E
3.00%
1.OO%
C.50%
Ciass I
0.00%
0.008
0 00%
C'ass x
0 00%
O,OO%
0 55%
0.00%
0.00%
Class A
5 00%
150%
Class B
0 00%
0 00%
2 00%
3 00%
0 00%
0 OG%
1 50%
C!&S
c
0.00%
0.00%
0.00%
1 00% 4.00% to 0.00%
0.00%
Class A
Class B
5 00%
0 00%
100%
1 .OO%
0 00%
oo w
L O O % 4.00% to 0 00%
Class C
C h SE
0 00%
3 00%
100%
100%
1 25% 1 00% to 0 00%
0 50%
0 00%
Class X
0 00%
0 00%
0 00%
Class A
5 00%
0 00%
2 OO$b
0 00%
Class B
Class C
O.W%
G 00%
1 00% 4.00% to 0 00%
1 . 2 5 2 1.00% toC00%
0 00%
2.00%
2.00%
Class 0
Class E
Class J
Class Q
Class X
2 00%
3 00%
1 .OO%
2 00%
0 00%
0 00%
0.00%
2.00%
0 00%
G 00%
0.50%
0,OOYa
0 00%
0.0056
1.25% 4.00% to 0 00%
0 00%
0.00%
0.00%
Class A
5 GO%
1.35%
Class B
0 00%
0.00%
1.35%
0.00%
0 09%
1.OO% 4 C O % to 0 00%
1 25% i 00% to 0 00%
0.50%
0 00%
0.00%
0 00%
:.OO% 4.00% to G W%
0.00%
0 00%
0 00%
0 00%
0 00%
1 00% 4 00% to 0 00%
1 25% 1 0090 to 0 CO%
0 00%
0 00%
0 50%
0 00%
0 00%
0 GO%
0 00%
0 00%
5 00%
0 00%
1.35%
135%
0 OG%
0.00%
1 00% 4 00% to 0.00%
Class E
Class C
0 00%
3.00%
1?5%
1 25% 1.DO% to 0.00%
0 50%
0 OC%
Class C
Class E
Class I
Class Q
O.OOD/b
0.00%
Class I
0.00%
0.00%
1.35%
0 00%
O.OG56
1 25% 4 00% to 0.00%
1.25% 4.00% to 0 00%
0 00%
0 00%
0.009b
0 00%
0 00%
1.50%
Clas5 X
Class Q
Class X
0 00%
n no%
n nn%
1.OO%
0.00%
0 00%
5 @G%
0 00%
0 OGU
3 00%
135%
0.00%
1.00%
1 009~4,00% to O,OO%
0 00%
0 00%
0 00%
0.00%
l.OGO/b 4.00% to 0 00%
1 25% 1 O W IO 0.00%
0 50%
0.009j
c 00%
0.00%
Class A
Clars B
Class C
Class E
Class Q
5 00%
Class A
0 00%
3 00%
G 00%
G 00%
1 .OO%
1.OO%
1.15%
O.OG%
1.25% 1.00% t O 0.00%
0.50%
0.00%
1.25% A 00% to 0 00%
0.00%
0 00%
class 9
Class X
0 0096
135%
0 00%
1 25% 4.00% To O.OCM
0.00%
O.CC%
Cia55 A
5 00%
000%
150%
0 OG%
1.50%
1 om 4 00% to 0.00%
1 25% 1 00% to 0.00%
0 OO?/.
0.00%
0 50%
0.00%
0 00%
0 C0%
0.00%
0.00%
Class c
Clars D
Class E
Class J
Class X
150%
0 75%
1
50%
Class C
Class E
Class J
Class Q
Class X
Class A
Class A
Ciass a
C'ass
c
Class E
Clarr 8
Class C
Class E
C i a1
Ciasr 3
cia55 c
0 00%
-
13596
135%
135%
1354e
1.508
Class D
0 00%
2.00%
0 15%
Ciass E
3 00%
150%
Clarr J
O.OC%
Class X
0 OG%
0 00%
c 00%
0.00%
0 00~:
Class X
3.00%
0 00%
0.00%
0 00%
5 00%
0 00%
:.35%
1.35%
0.00%
0.55%
0.00%
0.00%
1 00% 4.00% to 0.00%
150%
150%
0 00%
0 00%
1.50%
2 GO%
3 GO%
0 75%
!.503/o
1.25% 1 .OO% tO 0 00%
0 OG%
0 00%
0 50%
0 00%
0.00%
0 00%
0 00%
As from 29 M a y 2006, the f e e table for the Euro Bond Fund shall read:
Class A
5 00%
0 75%
0 00%
Class B
Class C
0 00%
0 00%
1 00% 4.00% to 0 000.6
1 25% 1 00% to 0.00%
Class E
3 00%
Class J
Class Q
Class X
0 00%
G 00%
0.75%
F.75%
0.756
O,OO%
1.15%
0 OG%
0 00%
0 00%
0 50%
0 00%
O.GO%
0 00%
1.25% 4 00% t0 0 00%
0.00%
0 %I%
Appendix E
C!ass A
5 oc Yo
100%
0 OG%
c2rs 3
0 00%
0 GO%
3 00%
0 00%
0 00%
100%
1 CO%
1 OG?b 4 0c% !o 0 00%
Class C
Class E
Class J
Class X
Class A
Class B
Class C
Class 0
Class E
Clarr I
Clajs Q
Class X
C!ass A
C'ass 3
Ciass C
Class D
Class E
Class J
100%
1.25% 1 00% to 0 OC%
0.50%
0 OF%
0 00%
0 00%
0 00%
0 90%
c 90%
0 00%
c 00%
5 00%
150%
0 OG%
150%
0 00%
1509;
0 75%
2.00%
3.00%
0 00%
0 00%
0 00%
5.OC9b
G 00%
c CO?.b
2 00%
3 00%
0 00%
0 00%
1 50%
0 @O%
115%
G 09%
0 GO%
0 75%
0 GO%
0 00%
0 C0%
0 7596
e 00%
0 00%
Class C
Class C
Claa J
Class 9
Class X
0 G030
0 00%
0 00%
0 00%
0 0090
0 25%
0 00YO
0 00%
0 GO%
0 00%
0 00%
0 7596
0 75%
0 00%
0 75%
0 00%
0 00%
0 00%
G 00%
0 0090
1 .OC% 4 00% tc 0 90%
1.25% 1 90% ?G 0 00%
0 00%
0.OG9.k
0 50%
0 @C%
0 ooc/o
0 GO%
1 25% 4 00% to 0 C O s j
c 00%
0 CO%
0 004"
1 00% 4 0C% :o 0 00%
Class A
Class B
C!as A
Clasr B
5 00%
1 5G%
0 00%
0 00%
0 GO%
1 50%
1.50%
1 00% 4 00% to 0 00%
:lass D
Class E
2 00%
3 00%
0 75%
1.50%
0.00%
0.5OC/o
Cl3SS I
0 00%
0 00%
Class 3
Class X
0 OC%
1 OO~/O
0.00%
0.00%
1 COY0 4 00% to 0.00%
0 00%
O.OG%
0 00%
5 00%
100%
0 CO%
100%
0.00%
0 00%
1.00010 4 00% to 0 00%
1 25% 1 00% to 0 00%
Class c
Class
c
0 00%
100%
3 00%
1.00%
0 50%
Class J
C 00%
0 011%
c 00%
Class 3
Class X
c 00 3;
c 00%
0 00%
115%
0 00%
0.00%
0.00%
: 25% 4.00% to 000%
0 GO%
c 00%
class A
Class B
5 002
100%
0 00%
0 00%
1 00%
0 OG%
c 00%
Class A
5 00%
1.75%
0 00%
0 OC9j
Class E
0 00%
3 GO%
100%
0 CC%
4 00% to 0 OC%
Clajs I
G 00%
0.OCYc
Ckss Q
0 00%
115%
Class X
O.GO%
0 00%
Clars A
5 00%
0 C0%
0 CO%
2 GOZ
0.75io
3.00%
0 75%
0 00%
0 00%
Class C
Cldrs A
5 OC%
1 50%
G 00%
Class B
150%
150%
1 00%
Class c
0 OCJb
0 OC%
C'ass 3
Class E
2 OC%
3 GO%
0.7596
150yb
Clarr I
Clajr X
0 009'-
0 00%
0 00%
G 03%
1 25% 1 00% !O 0.00%
0.03%
0 OF%
0 50%
O.OG9;
0 00%
C OG%
0 oc9,
C'ass A
5 GO%
3
0 GO%
175%
175%
0.00%
Cl&S
Class
c
0 00%
175%
1 2 5 5 0 1.00% toOC093
1.00%
1.75%
0 00%
G 50%
c 0050
G OC%
0 00%
0 oc
CIS5
c
C'ars x
Clars A
Class B
Clasr c
Class 0
ciass E
C'zss J
Class Q
Clasr
x
175%
G.@O%
5 00%
0 00%
1.OO% 4 OC% IO 0 00%
O.GO%
ti 00%
0 GP/b
1.25% 4 OOom to 0 0070
0 OG%
0 00%
e
clasr c
Class D
Class E
Clars I
Class X
Clarr A
G OOYo
0 00%
Class B
5 00%
0 G0%
0 oosb
1 .OO% 4 00% tO 0.00%
1 2 5 % 1 00% to 0 00%
0.50C.b
0.00%
O.GOX
0.00%
1 25% 4 00% to C 00%
0.00%
0 00%
1 25%
: 00% to 0 00%
0.40%
0.00%
0.5096
0 00%
0 00%
0 0046
0 00%
0 00%
0.09%
0 0%
@ 00%
? 5G%
150%
1.002 4 GO% t3 0 90%
1.25% 1.GO% to 0 00%
0 00%
0 00%
0 501
0 0096
Clasj C
0 oot/o
150%
0 CG%
Class D
2 00%
3 FG%
c 75%
15046
1 00% 4 GO% to 0 OC%
Clarj E
150%
2.00%
3 GO%
0 75%
Ciass J
Ciar?X
1.5096
0 00%
100%
I 25% 1 0096 to 0 OC%
0 OG%
0 00%
0 50%
0 00%
0 00%
0.00%
1 00% 4.0090 to 0 00%
0 00%
G 00%
0 00%
G 00%
O.OG%
1 00% 4 00% to 0 00%
c 900,.
9 9Oib
G 0%
0 75%
0 75%
150%
0 OG%
0.00%
0 00%
0 OG%
1 GG%
0.00%
C CC'k
CIZF
Clasr J
0 00%
:lass E
C!ass X
z 00%
0 00%
0 00%
0 00%
0 00:
0 GO%
1 25% 4 0046 to 0 00%
O.OC%
0 OF%
3 00%
1.25% 1 08; to 0 00%
1 25% 1 OC5b I O 0.OC.C.b
1 i5%
Class D
0 00%
0 00th
C.5010
0 OGSb
0 OC%
C1311 E
0 00%
1 50%
150%
150%
0 75%
150%
Q
CldSS
Class A
Class B
150%
0.00%
0 CC%
0.00%
0 CO%
0 00%
0 009~
0GO6
Merrill Lynch International Investment Furrdr
59
Appendix E
5,00%
0.00%
0.00%
2 00%
3.0096
0 00%
0 00%
0 00%
!.50%
i.50%
1 .SO%
0 75%
150%
0 00%
1 .OO%
0.00%
o.ooc/b
Class A
Class B
Class C
Class D
Class E
Class J
Class X
5 00%
0 GO%
1.50%
1.50%
1.50%
0.75%
1.50%
0 OC%
0.00%
O.OOS6
Class A
Class B
5 00%
I .50%
150%
0.005'0
0 00%
1 ,OO% 4.00% to 0 00%
Class C
0 00%
Class D
Class E
2 00%
1.50%
0 75%
1.50%
1.25% 1 .OO%
0 00%
0 50%
0.00%
0.00%
0.00%
0.00%
0.0046
0 00%
1.50%
1.50%
1.5C%
0.75%
0.00%
0 00%
Class A
Clay A
Clan B
Class C
Class 3
Clarr E
Clan J
Class Q
Clasr x
Class A
5.00%
0 0096
0.00%
2.00%
3 00%
0 00%
0.00%
0.00%
Class X
5.002
0 00%
0 00%
2 00%
3 OC%
0 OC%
0 00%
Class A
5 00%
Class 3
Ciass C
Class 0
C :ass E
C:dsi J
1.50%
150%
c 00%
1.50%
0 75%
1.504/0
0 00%
1.15%
0.0046
1 25% 1 .OGS lo 0 00%
0.00%
1.25% 4.0C% toO.OO%
0.75%
0.004~
0.00%
0 50%
0 00%
0.00%
0 00%
0 00%
0 00%
0 00%
0.00%
0.00%
0.00%
1.50%
1 50%
0.00%
2 00%
1.50%
0 75%
3 00%
1.50%
0.00%
0 00%
c. 00%
0.00%
0 00%
C!ars X
0.00%
0.OOYb
0.00%
Class B
Class C
Class G
0 50%
1.SO%
1 .SO%
150%
1 50%
0.00%
0 OO$
G 00%
0.00%
5 00%
Class J
1 00% 4.0CSb to 0,0096
0.00%
Class A
Class D
Class E
0.00%
1 00% 4.0C% to 0.00%
1 25% 1 OC% TO 0.00%
0 OG%
0.00%
1 00% 4 06% to 0.00%
1 25% 1 00% to 0.00%
0 00%
0.00%
C 50%
0 00%
Class 8
Class C
Class D
Class E
Class J
Class Q
Class X
:lass J
Class X
c 00%
3 00%
0 00%
0 00%
0 00~6
Class 9
2 CO%
3.00%
0 00%
0.00%
x
0 0040
0.00%
Class A
5 CO%
0 00%
0.00%
0.00%
0 00%
Class B
0 00%
0 00%
0.00%
Class C
0 00%
0.00%
0 00%
l.CO9b 4.00% to 0 00%
1 25% 1 .OO% to 0 00%
Class V
Class f
Class 1
2 eo%
3 00%
G 00%
Class X
o 00%
1.50%
1.5056
150%
0 75%
1.5GCh
0 00%
0 00%
1.75%
175%
175%
1 .CO%
175%
0.00%
175%
0 00%
0 00%
0.00%
1 GO% 4.00% lo 0 09%
1.25% 1 .OO% to 0 0(1%
0.00%
G 00%
0 50%
G 00%
0.00%
2.00%
3.0070
0 00%
0.00%
0.00%
0 GG%
1 00% 4.00% to 0.00%
1 25% 1.OO% to 0 00%
0.00%
0 50%
ria55
Ciass A
5 OCY
1.35%
C iass B
0OGY
1.35%
0 00%
0 00%
1.00% 4 OG% to 0 00%
Clasr c
0 00%
135%
1.25% 1.00% IO II.GG%
Class E
3.00%
0 00%
0.00%
0.00%
135%
0 00%
1.35%
0 00%
0 5046
0 GO%
0 00%
0 00%
1 25% 4 00% to 0.00%
Class A
5 00%
Class 8
0 00%
0.00%
Class C
0 00%
2 00%
3 00%
0.00%
Class D
Class E
Class J
C'an 9
2 0096
3 00%
0 130%
0 00%
C :2sj X
0 00%
Class E
0.00%
Class C
Class D
Class E
0.00%
0.00%
Class C
Class C
Class D
tO 0 00%
1.00% 4 Oc.% to 0.00%
1 50%
150%
G 75%
150%
0 00%
0 00%
5 OG%
0 00%
0 00%
150%
0 00%
0 00%
O.GOYo
0 00%
1 .OO%
5 00%
Class B
Class C
0 00%
0.00%
0 OOYO
Class A
0 00%
3 00%
0 00%
Class B
Class J
Class Q
riau x
1 2556 1 00% to 0.OOX
0 00%
0 5043
Class A
Class B
Class A
0 00%
2 CO%
3 00%
0.00%
0 00%
0 00%
1 00% 4 00% to 0 00%
0.00%
0 00%
Class E
Class J
Class J
r Iws x
0 00%
0 00%
1 00% 4 GO% to 0 00%
1.25% 1 .OO% to 0 00%
0 00%
c. 00%
0 50%
0 00%
0 00%
c 00%
1 .OO% 4.CO% to G 00%
0.00%
0 00%
1.50%
150%
150%
G 75%
150%
G 00%
0 00%
0.00%
1 .OO% 4.00% io O.CO%
1 25% 1 00% lo 0.00%
O.OC%
O,OO%
0.5G%
0.00%
0 OG%
0 00%
1.50%
1 25% 4.00% to 0 00%
0.00%
0.oox
60 Weriill Lynch International I n v e s t r e n t Furlos
0.00%
Class J
Class Q
Class X
0 0096
0 00%
0 00%
1 SO%
0 00%
1.15%
1 00% 4.00% to 0 00%
1.25Yo 1 .OO% 10 0 00%
0 00%
0 50%
0 00%
0 00%
0.00%
1 25% 4 00% to 0.00%
0.00%
0.0046
0.00%
0 00%
0 50%
0 00%
c 00%
0.00%
0 00%
0.00%
0 00%
0 00%
G 00%
1 25% L 00% to 0 00%
0 00%
0.00%
Appendix E
Class A
5 00%
1 75%
0 00%
Class B
0 00%
1 00% 4 00% to 0 00%
ClaT5 A
5 00%
Clarr c
Class D
G 90%
1.75%
175?6
cox
O.GC%
G 00%
1 50%
100%
ClXs C
c CO%
1 5G%
1.25% 1.00% t o 0 0 0 1
17556
0 50%
0 0046
Cfarr E
3 GO%
1.50%
0 50%
0 00%
0 00%
100%
0 00%
0 00%
0 00%
1 00% 4 OG% to G 00%
Class J
0 OiJ%
0 GO%
0.00%
0 00%
Class Q
Class X
0 00%
1.50%
1
0 OOOlb
0.00%
0 CO%
175%
175%
C OG%
G 00%
1 00% 4 00% to 0 00%
Cla5r A
Class C
Class C
5 00%
c 00%
0 GO%
Class X
9 GO%
Class A
5 00%
Ciass 3
0 GOYo
c:zss c
0 00%
2 00%
3 00%
175%
1 . 2 5 5 1 00% to 0 00%
100%
175%
0 00%
C 50%
0 OCTO
0 OC%
0.0046
0 00%
o.oc96
0 00%
1 75%
G 00%
1 25%
5 00%
0 GO%
1505b
1 50%
@ 00%
0 005.
1 SO%
1 25% 1 OG% to 0 00%
2 00%
3 00%
G 75%
c 00%
150sb
0 00%
0.5C%
G COX
O.G@%
0.00%
ono8
.
Class E
Class J
Class Q
Class
4 00% to 0 GO%
Class B
Cldsr E
2.001
3.00%
<la55 I
Class X
0 00%
0 00%
CbrrA
5 G9%
Clasr A
Class B
25% 4 00% to G 00%
0 00%
........
15G%
15C%
1.50%
0 7556
150%
0 00%
0 00%
0 00%
1.OO% 4.00% to 0 0C"h
1.25% 1 00% to G 00%
O.CO%
G 00%
0.50%
0 00%
O.GO%
0 00%
0 00%
0 COY0
0O ~ %
1.75%
0.00%
0 00%
5 00%
1 50%
O.GO%
0 00%
150%
Clarr C
0 00%
Class C
2 00%
150%
0 75%
Clarj E
Class J
3 G3%
0 00%
9.00%
x
Class A
Clarr B
Class C
Class D
Class E
Class J
Ciass Q
Clasr X
Class A
ciarr a
C!ass c
Class E
Class J
Class Q
Clarr X
0 OC%
G 0070
1 00% 4 00% to O.OC%
G.OOI
1 15?0
1 09% 4 00% i o 0 00%
0.00%
0 00%
0 00%
5 OG%
1 CF%
0 OG%
1 OO?u
0 00%
100%
3.00?E
0 0046
1 00%
0 OLW
0 00%
1 00%
0 GG%
0 00%
C!ass A
@ 00%
0 75%
Class B
0 00%
0 75%
Clajr C
0 tiO%
0 75%
Class E
0 OGW
c 75%
Class 1
OOC%
0 00%
C a sQ
0 OC9k
0 75%
Class X
0 00%
0 09%
nn m
0 OC%
1 .OG% 4.G096 to 0 OC%
1 25% 1 0096 tc 0 O@%
0 50%
O.OC%
G 00%
0 OC%
1 2 5 % 400% toOOCX
0 OC%
0 GC%
0 00%
0 00%
0 00%
0 00%
0 25%
G 00%
0 00%
0 O@%
0 00%
5 G0%
15GZ
0.00%
0 00%
0.00%
1.50%
150%
Clav D
ClmE
2 00%
3 00%
c 75%
Class J
0 00%
Class Q
Class X
C GO%
0 00%
0 OCYC
1.GC%
1 .OO% 4 00% to G 00%
1 25% 1 00% to G 00%
0 CO%
0 00%
0 50%
0 00%
G.OOE
0.00%
1.OO% 4 00% to 0 00%
0.00%
0 00%
0 4ow
0 9G%
:lass E
Class J
Clasr Q
Clarr x
3 GO%
0 00%
0 00%
0 00%
1 00% 4 OG'?'o to 0 00';
159%
1 25% 1 O C S '.O 0 GO%
150%
0 00%
G.00?0
C 50%
G OG%
1 25?h 4 GO%
0.00%
O.CG%
5 00%
150%
0 00%
150%
0 00%
G GO%
0 00%
3 00%
150%
Cia% A
Class B
Clars C
Class B
Class C
C GO%
0 0osb
G 00%
Clars A
c
C OC%
115%
G 00%
0 00%
C!ars B
0 00%
0 00%
Class X
i.5096
0 CG%
150%
Clarr C
Clasr X
Class Q
0.05%
1 00% 5 GO% to 0 00%
1 25% 1 .OO% to 0 00%
0 00%
0 00%
0.50%
G 00%
0.00%
C.OO%
1 25% 4 00% to 0 00%
0 GO%
0 OOCh
0 00%
0.00%
5 GC%
Class E
Class J
..
G 00%
Class A
Class
0 00%
0 00%
1.OO% 4 00% to 0.00%
Class B
Class Q
C!ass D
150%
1.75% 1.00%to 0
G 00%
0 CO%
2 0046
3 OC%
0 OG%
0 OGYo
Class E
C!ars J
.. .
,
0 00%
0 00%
0 65%
0 COCh
0 00%
1.OO% C.G0% to 0.00%
1.25% 1 00% to 0 00%
0.50%
0 00%
0.00%
0 OOSb
1 00% 4.00% to G 00%
0.00%
0 00%
0 00%
0.9C.4E
0 9G%
0 OG%
G OO'lb
0 00%
Class A
5 COT6
1.35%
0.00%
Clars 6
0 OG%
1 00% 4 OFYOto G 00%
to 0 GG%
Class C
0 00%
1.3556
1359b
Cldrs E
3 00%
C GO%
135%
0 GO%
0 00%
0.75% 4 0090 to 0 00%
0 00%
Class J
Class Q
0.00%
Class X
0.004b
0.ocx
0 556
LOO%
0 00%
1 25% 1 00% to 0 00%
0.50%
0 00%
0.00%
0 00%
Appendix E
Class B
5 00%
0 009>
Class C
0.00%
Class E
3.90%
0 00%
Clars A
Clars J
Class A
0 OC%
Clasr 3
0 00%
Clars C
0 00%
100%
100%
1 .OO%
1 .OO%
0 00%
0 00%
0.00%
1 00% 4 00% to 0.00%
1.25% 1 .OO% 10 0.00%
0.50%
0 00%
0 00%
0.00%
O.OG%
0 OOY
0 75%
0 75%
0 75%
0 75%
0 00%
0 00%
C OG%
0 25%
0 00%
0 OG%
0 00%
0 00%
0.00%
0 00%
0.00%
Class E
0 00%
Clars J
0 00%
Class Q
0 00%
0 0096
0 75%
c:ass x
0 00%
0 00%
O.CO%
0 00%
0 00%
Class A
5 CO%
1.50%
Class B
c 00%
Class C
Class D
2 00%
Class E
3 00%
Class J
Class Q
Class X
c 00%
1.50%
15C%
0,75%
1.50%
0 00%
1.50%
0.00%
ClasA
Class B
5 00%
0 GO%
Class c
Class D
0 00%
Class E
Class I
3 00%
Class Q
Class X
Clars A
Class 8
Cia- C
5 00%
Class D
2 00%
3 OOh
'
Class E
Class J
Class Q
0 00%
0 00%
0 00%
0 00%
Class A
5 OC%
Clarr E
Class C
0 OC%
Class 3
Ciass E
2 00%
Cisss J
Class Q
0 0090
Clasr x
0 00%
j OG%
0.00%
0 00%
Class A
5 00%
Clars S
O.OC%
Ciass C
C:ess E
O.OG%
3 00%
Class I
0 00%
C las? Q
0 00%
C larc X
nn m
CkSS A
C!esr 6
Class C
Clasr D
Clasr E
Class J
Clesr Q
c Ids5 x
150%
150%
150%
0 7596
1.50%
0.00%
1 1 5 5;
0 00%
0 00%
0 00%
0 00%
2 00%
0.00%
0 00%
0 00%
0 00%
0.oosb
c 00%
1.25% 4.00% to 0 00%
0.00%
0.00%
0 00%
0.00%
1 .OO% 4 00% to 0 00%
1 2536 1 00% t3 0 00%
0 00%
0 50%
0 00%
0.00%
0 00%
1 00% 4.00% to 0.00%
0.00%
0.00%
0 00%
0 00%
1 2570 1 OG% to 0 00%
0 OC%
0 00%
Class A
5 00%
0 85%
0 00%
Clars 6
0.00%
0 50%
c 00%
0 00%
1 25% 4 00% to 0.00%
Class C
0 00%
G 00%
0 85%
0 85%
0 85%
1 00% 4.00% to 0 00%
1 25% 1 00% to 0 00%
0 50%
0.001
0 OOCh
0 00%
0 00%
0 00%
1.75%
i .75%
' ,7556
1 .OO%
i.75%
0.00%
1.75%
0 OG%
0 00%
0 00%
1 00% 4 00% to G 00%
1 25% 1 00% to 0 00%
75%
1 75%
1 75%
1 .OO%
1 75%
O.CO%
100%
0.004b
0.00%
0 00%
0 00%
0 00%
1 75%
1 75%
1 75%
100%
1 754'0
0 00%
150%
0.00%
0 00%
0 002
0 00%
Class E
Class J
Class X
3 00%
0 00%
000%
0 00%
0.00%
1 00% 4 00% :o 0.00%
1 25% 1 00% to 0.00%
0 00%
0 00%
0.50%
0.00%
0.00%
0.00%
1 00% 4 00% to 0 OG%
100%
1.00%
1.OO%
1 .OO%
0 09%
109%
0 0096
0 00%
0 00%
1 00% 4 00% to 0.00%
1.25% 1 .OD% to 0.00%
Class A
5 00%
Class 6
Class C
0 00%
0 00%
Class D
Class E
2 00%
Class J
Class Q
0 GO%
Clars X
0 00%
Clars A
Class B
0 00%
0.00%
0.50%
0 00%
0 00%
0.00%
0 75% 4 00% t o 0 00%
0 OC%
0.00%
L50%
150%
150%
0 75%
0 00%
1 25% 1.00% to 0 00%
G.OO%
0 CO%
0.50%
0.00%
0.00%
0.00%
0 00%
0 00%
100%
0 00%
I 00% 4 00% to 0.00%
0.00%
0 00%
0.00%
Class A
Class B
Class C
Class D
Class E
Class I
Class Q
Class X
5 00%
0 00%
c 00%
2 00%
3 00%
0.00%
0 00%
0.00%
O,OO%
3 00%
G 00%
q
0 00%
0 00%
0 GO%
0 50%
0 00%
0 00%
0 00%
o 00%
1 25% 4 GO% to 0 00%
0 00%
0 00%
0 00%
1 .OO% 4.00% to 0 00%
1 25% 1 .OO% IO 0.00%
0 00%
0 00%
0 50%
0 09%
0 00%
0 002
1.OO% 4.00% to 0.03%
0.00%
0.0056
0 00%
5 03%
0 00%
0 00%
2 00%
3 00%
0 DG%
67 hrerrill Lynch International Investment Funds
0 50%
0 00%
0 00%
1 00% 4 00% t o 0 GO%
150%
1 50%
15056
0 75%
150%
0.oosb
1.OO%
0.00%
1 50%
150%
1.50%
150%
0 15%
150%
0.00%
100%
0.00%
0 00%
1 00% 4 COY3 to 0 00%
1.25% 1.003/oto 0.09%
0 OOOh
0 00%
1 00% 4 00% to 0 00%
5 00%
Class C
Class D
0 00%
Clajs E
Class J
3.OOqo
Class 4
Class X
2 0070
0 00%
1 00% 4 00% to 0 00%
1 25% 1 00% to C 00%
0 00%
0 00%
0 50%
0 00%
0 00%
0 00%
1 25% 4 00% to 0 00%
0 00%
0 00%
Appendix E
Class A
5 aoah
175%
c 00%
Class B
Class C
0 0090
0 00%
1 00% 4,003; to 0 00%
1 2546 1.00% to 0 00%
Class 3
Class E
2 00%
3 02%
175%
175%
100%
Cia% J
0.OG9b
Class Q
o aov0
17590
Class X
0 00%
0 00%
1.25% 4.00% to 0 00%
0 OC%
0 00%
175%
c 00%
0 00%
o no?&
0 00%
0 59%
0 0090
0.00%
0 00%
5 00%
1.OO%
c 00%
i ao%
Class C
0 00%
0 000.0
1 OOcib 4 OGYb to 0 GO%
1 25% 1 00% to 0 CO%
Cldss E
3 ocsb
1 0096
C!ass J
aOGC~~
C!mX
0.00%
0 00%
0 00%
Class A
Class 9
Class A
5 009.
Class B
Class C
Class 3
C!as E
Ciass J
Class Q
Class X
0 00%
0 00%
Class A
5.00%
0 00%
0 00%
Class 3
Cless c
(!ass D
Ciass E
Class J
Class Q
Class X
1.00%
1 75%
1.75%
0.GCI
0 50%
0 00%
a 00%
0 CO%
0 Oi146
0.00%
G 00%
0.00sk
1. 75%
1 ao% 4 OCE t o o OW
1 25% 1 02% io 0 OG5o
100%
o.owC
O.GO%
I . 75%
0 50%
o.ao%
o aa%
o 00%
0 00%
150So
0 00%
1.25% 4 00% to G 00%
0 00%
1.75%
1. 75%
0 00%
0 0C%
1 90% 4 5G% to 0 00%
z 00~0
1. 7556
100%
1 25% 1 oc% t o o c w
G.OO%
O.CO93
3 OC%
1, 75%
0 50%
0 00%
0 00%
c 00%
0 00%
oo w
0 90%
1 OOCh
0 OG%
1 OG% 4 00% to 0.00%
0 00%
0 00%
2 00%
3 ocso
9 00%
0 @E%
0 GO%
Note: SJbJeCtto thc approval of the board of D,rectors, t h e Managcwnt
Fee for any Fuqd may be ,ncreased up to 2.25% by giviqg
shareiclders three montis' prior not ce in accordance nlitn
paragraph 21 of Appendix C. Any iicrease above this level would
require approva! of shareholders at a general meeting.
Appendix F
Appendix F - MLllF available funds and share classes
All Funds a r d Share Classes listed below are Iexisteice as at the time of
isslre of the Prospectus This lis: may be updated frow time to tlme A copy
of t i e dpdated list m y be obtamned by applica:ion to the livestor Service
Certre Not a'l share classes are registered r all juwdictioqs
Share class descriptions conta:n a rumerica' code to represen: its relevapt
d,stribut on method as defined ir the ProspectI;s, for examp'e.
A I = ' A ' share class which follows Distribut,ng (0) calculatioi
metiod (div dend is calculated ca ly based upon da ly-accrueo
income less expenses, for t i e nu.nber of Shares outstanding o i
t i a t day A cumulative rnoithly divideid is distributed to
Siareholders monthly based upon the number of Shares held and
t i e nu.nber of days for which they were he d during the period)
A2 =
'Ashare class which is Non-Distributing (no dividend is paid)
A3 = 'Ashare class which fol ows Distribut ng (M) calculation
method (divdend is calculated montily based upon i n c o w
accrued dur ng the dividend period less expenses and cistr buted t o
Siareholders moqth:y based upon the number of shares he'd at tne
month ena)
A 4 = 'A' mare class wh,m follows Distributing (A) calculation
(divioend I S calculated annua'ly bascd upon income accrued during
the d videid period less expenses. The dividend 1s distributec to
Shareho ders aqnually based upon the n m b e r of Shares helo at
the e i d of the annJal period)
A4 DS = A share c ass wiic+ follows Distribuvng (A) calculafio~
and seeks UK Distributor Status.
Asian Dragon A2 USD
Asiar D:agon A2 EUF(
Asiar. DragonA2 GBP
Asiar DragonB2 USE
Ariar; Dragon 82 EUR
Asian Jragon E2 GBP
Asian Dragoi C2 USD
Arian Dragci C2 EUR
Asiai Dragol E2 GBP
Asian DraoonE2 USD
Asian DragonE2 EUR
Awn Drzgon E2 GBP
Ajiar D%gonA4 D5 GPB
Asian Tiger Bond A I USD
Asian Tiger Bond A2 USD
Asian Tiger Bond A3 USD
Asian Tiger Bord 3: USD
Asian Tiger Bard 9i US3
Asiai Tiger B w d C 1 USE
Asian Tiger Eord C2 USD
Asia?Tiger Bond E2 USD
US0
USD
USD
EUR
USC
GBP
USD
USD
EUR
USD
US0
GBP
UjD
USD
EUR
GBP
US3
EUR
AD
LSD
GBP
GBP
USD
USD
US0
USD
USD
USD
USD
USD
USD
USD
uSD
USD
61 Merrill lynch International Investment Funds
USD
USD
USD
USD
USD
US0
US3
US3
Non-Distributing
Non-D!strbuting
Non-Distributing
Non-Dis?r1buting
NOn-D#5tr:bJting
Non-D!strioJting
Nan-Distributing
Ncn-Distribu;lng
Non-Distribut!ng
hon.Distributing
hion-Distributing
Non-Distributing
Distributng (A)
Distributing (D)
Non-D:str~bJting
Distribkting (U!
Distributing 13)
Non-Distribu:.ng
Distributing(D)
Kon-Distribut r g
Non-Distributing
Conservative Allocation (Euro) A1 EUR
ConservativeA k a : on (Euro) A2 EUR
ConseNat8YeA'loca: on (Euro) A3 EUil
ConservativeA Io:a:,on (Euro) 8 1 EUR
Conservatve A loca;.on (Euro) 92 EUR
Conrervat8reAdotatton (Euro) C 1 EUK
Conservative Alloca! on (Euro) C2 EUR
Conjervat,veAlloca! 09 (Euro) E2 EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
U
:R
EUR
EUR
EUR
EUR
EUR
Distributing (D)
Non-Distributing
Dirrributing (M)
Distributing(0)
Yon-Distributmg
3s:ributing (D)
Von-Distributmg
Uon-Distributing
Conservative Allocation (US Dollar) A1 USD USD
Coiservatlve Albcdtion (US Dollar) A2 US0
USD
Consevitive Allocation(US Dollar) A3 US0
USD
Colsew6tive Allocation(US Dollar)61 USD
USD
ConservativeAllocation(US Dollar) BZ USD
USD
Coiservatiwe AllocationIUS Colla:) C1 USD
USD
ConservativeAllocation(US Dollar)Z: USE
USD
Consewative Allocation (US Dollar)E2 ;IS0
USD
USD
USD
USD
USD
USE
US0
USD
USD
Distributing(D)
Uon-Gistributing
listributing (MJ
3istributing (D)
Yon-Distributino
Distributing(0)
Nan-Distribmg
Non-Distributiqg
Continental European Growth A2 EUR
Continental European G:owth E2 EUR
Continental European Growth E2 EUR
Continental European Growth C2 EUR
Continental Eurooean Growth A4 DS GBP
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Non-Distributing
Nan-Distributing
Non-Distributing
Non-Distributing
Disiributing(A)
Corporate Bond Fund (Euro) A1 EUR
Corporate Bold FuKd (Euro)A2 EUR
CorporateBold Furd (Euro! A3 EUR
CorporateBond Fund(Euro)E1 EUR
Corporate9ond Fund (Euro)B2 EUR
Corpo!a!e BondFund;Euro1 C 1 EUR
Corpc:a:e Bond Fund (Euro)C2 EUR
CorporafeBond fund fiurol E2 EWE
"(uitil 31 July 2006 whm me fuid will be
renamedEuro Corporate Bond Fund)"
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Distributing (D)
Non-Distriburing
Non-Cistibuting (M)
Distribut 1g (0)
Non-Dist:ibuting
Distributmg(0)
Non-DistribLting
EUR
EuR
Non-Distributino
Emerging EuropeA2 EUR
Emerging Europe A2 LSD
Emerging Europe B2 EUR
Emerging Europe 82 USD
Emerging Europe C2 EUR
Emerging Ei.rope C2 USD
Emerging Eurcpe E2 EUR
Emerging Europe E2 USD
Emerging EhropeX2 EUR
Emergrg EuropeX2 USD
Emergrg Europe A4 CS GhF
EUR
EUR
EUR
USD
EUR
USD
EUR
US0
EUR
USD
EUR
USE
Non-Distributing
Nol.Distributing
Ncq-Cistributing
Non4istributing
Non-Distibuting
Ncn-Cijtiibuting
Non-Cistributing
Non-DisPibuting
Non-Distributing
Non-DistribLting
Distributing<A)
Emerging MarketsEond A1 USD
EmergmgMarketsBond Ai EUR
Emerging Markes Bond A2 US3
Emerging Markex 3ond A2 EUR
Emerging MarketsBcndA3 USD
Emerging Ma-kets Bond A3 EUR
Emerging Ma'kets Bord E1 USD
Emerging Mar& Bord E1 EUR
Emerging MarketsBordBZ US0
Emergrg MarketsBord E2 EUR
Emergr g MarketsBord C 1 US0
USD
USD
USD
ELlR
USD
US0
US0
USE
USD
EUR
USD
EUR
US0
EUR
US0
EUR
USD
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
USD
USD
USD
USD
EilR
EUR
GBP
EUR
EUR
EUR
EUR
GSP
Distributing (0)
Distributing(Dj
Non-Distr4buting
Non-Distributing
Non-Distributing(M)
Noi-Distributing (M!
Dijtrib?ltilQ(Di
Di5::ibJting (Dl
NovGist:ibuting
Non-Distributing
Non-Dist:ibuting
Appendix F
EmergingMarketsBond1: EUR
Emerging MarketsBond C2 USD
Emerging MarketsBond C2 EUR
Emerging MarketsBond E2 USD
Emerging Marke:r Bond E2 EU9
LSD
Emerging Markets A2 USD
Emerging MarketsA2 E M
Energiig MarketsB2 USD
Energiig MarketsE2 EU9
Emerging MarketsC2 US0
Emerging MarketsC2 EUR
Emerging MarketsE2 JSD
Emerging Market5 E2 EUR
USD
Euro Bond A I EUR
Euro BondAI USD
Edro BondA2 EUR
EJro BondA2 US0
EJrO BondA3 ECR
Euro Bold A3 US0
Euro Bold E1 EUR
Euro So13 81 LSD
Euro Bond 82 EUR
Euro Bond 62 LjD
Euro Bond C 1 EiJR
Euro Eond C l USD
Edro Bond C2 EUR
Exo Bond C2 US0
Euro Bond E2 EJ9
Eu*o Bond E2 bS5
EUR
EUR
EUR
EUR
USD
EUR
Em
US3
EL!?
EUR
EJR
EUk
EUR
USD
EUR
USD
EUR
EilR
USD
CUR
EUR
EUS
EU?
USD
EUR
LSD
USD
USD
USD
usc
us0
USD
LjD
LjD
US0
L SD
EuR
EJR
US0
EUR
us0
EUR
USD
CUR
LSD
EUR
USD
EJR
UjD
E;?
EUR
JS3
CL9
EUR
E,il
CISD
Dirtribu:.r.g (D)
Non-Disvhuting
Von-Dis!r buting
kon-Di5tr o:itiig
tor-Distribdting
Nan-Distributing
Non-3istnbd:,ng
Nov36tribu: cg
Non-Ystribuxg
Non-Ostribu: r;9
NOP-Dstribut rg
Non-Dstribur rg
Nos-Dsjtribut.ry
Distributing (D)
D,stribu:.r.g (DJ
Yon-Distr.outing
Coc,-Distr:bAting
D str:buting (M)
D'str buting (M)
Distr outmg (3)
Distr:buting(3)
Non-D'siribut r9
Non-Dir:ribut.rg
Distriburing(D;
Distribc: vg CD!
Kon-Distr,buting
ion-Distr bd!iig
Nor-3istrib.iiing
Nor-3!st:ibursng
Euro Corporate Bond Fund A1 EUR
EUR
Euro Corporaye Bond FundA2 EUR
EUR
Euro torpo!a:e Bond F d A3 EUR
EUR
Euro Corpo.xe Bond Fun0 E: EUR
EUR
EJr3 Corpoate Bord Fun0 82 FUR
E23
E m CorporateBoro Fljrid C l EU9
EUR
Edro CorporateBoso Furd C2 EU?
EU?
Euro Corporate30116 Furd E2 EUR
"(from 3: July 2006whe.1 t k firnd :haiges ,ts
E A
name f m m Co'pordte So.id Fund(Eurol"
EUR
EUR
Euro-Markets A4 EUR
Euro-MarketsA2 Eti9
Edro-MarketsA2 US3
EJro-MarketsB! EUR
E.iro-Markets B! USD
Ed:o-Marke3 C2 EUP
Euro-Ma:kets E2 EUR
Euro-MarketsE2 USD
EUR
EUR
EUR
EUR
EU9
ELI?
EUR
EUR
us0
EUR
E&
EjR
EUR
EUR
USD
Distributing (A)
Non-Dismbuting
Kon-Dirir8huting
hon-Distrlouting
U3r-DiStr.outiig
rCor-hstrtbdting
Nos-OistribJ:;ng
Non-3:stribu:,ng
Euro ReserveA2 EUR
Eiiro Reserve B2 EL?
Euro ReserveC: FUR
Exo R W N e E2 EUR
European A2 EUR
European A2 US3
EUR
EUR
EUR
EL3
EUR
EL2
EUR
EUR
EUR
EUR
EUR
LSD
Non-Distributing
hron-Dijir~buting
%on-Distr.outing
Wc-Distr.od!ing
Non-Distributing
Non-&t!ibd::ng
EUR
EUR
FUR
EUR
EUR
Distributing (Dl
Non-D,s:ributisg
Non-Dis?ribut,ng(Mj
Distribcring (D;
Non.Dis!r!buting
0 strihutirg (Di
\or-Distr:Suting
ELR
3 3
EwFean E2 EUR
LLiqean B2 USD
Eu:opc-dn C2 EL'R
European C2 USD
European E2 EUR
European E2 USC
EUR
E29
EUR
USD
Et3
USD
EUR
EUR
EUR
EUR
EUR
US0
European Growth A2 EUR
European G w t n A2 ilSD
European G r w t i E2 EUR
European L ~ o w tBZl USD
European Gwdti2: EUR
Europeai t i w v t b l 3 ;SO
Europem Gronti E2 EUR
Eu'opeai Srorvtn E2 US3
EUR
EUR
EUR
EUR
EUR
USD
EUR
USD
EUR
USD
European Opportunities A2 EUR
European OpportunittesA2 LSD
European Opponiinities BZ EUR
FuropeanOpportunities 82 USD
European Opportd'lities C2 EUR
Ellropean Oppcr!mi:ies C2 USD
Europeai ~pp0r:JnI:les E2 EUR
Europeai Oppor'dii'ies E2 US3
EUR
EUR
EUR
EUR
EUR
EUR
FUR
EUR
European Value A4 EUR
ELrcpeai Value A2 EUR
EmpednValue A2 GBP
European Valte A2 US0
EllropeanValue 82 EUR
EuropeanValue 82 GBP
EuropeanValue E2 CSS
EuropemValJe C2 EUR
EuropeanValJe C2 G9F
EhropeaiVdlx CI USD
Ewpeai 'dahie E2 EUR
EL.opean Value E2 GBP
Eu'opean Value E2 USD
European Valhe A4 DS GBF
EUR
EUR
EUR
Global Allocation A2 USD
Glohal Allocatior.A2 EJR
G!obaiAllocation 62 A D
51oha' Allocatioli E2 EGR
G cbd' :,llocation C2 US3
G 003 A113cal:onC2 E M
G!coa' Allocat.onE2 U5D
Gioh~!
Allocat on E2 EUR
Glohal Allo:ation Hedged A2 EUR
GlobalAl:ocation Hedged A2 EUR
Global Alloiatior HedgedA4 EUR
Global .Nocatior HedgedA2 GBF
G'oha'Allocatiol? Hedged E2 FUR
Goba AllocationHedged C2 EUR
G:cbai Allocat!cnHedged i 2 EUR
USD
us3
USD
USD
USD
USD
USD
USD
USD
us3
us0
USD
USD
Global Bond Fund (Euro) A1 EUR
Globdl Bond Fui3 [,Euro; A2 EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
USD
USD
EUR
USD
EUR
USD
EUR
USD
EUR
USD
EUR
iJ3
GBP
USD
EUR
GBP
US0
EUR
GBP
USD
E,i
G9P
USD
GBP
USD
Ell9
USD
E39
USD
EUR
USD
EUR
EUR
EUR
Ed9
GBP
EUR
EUR
EUR
EUR
EUR
Non-Distributing
Non-Distributing
Nan-Distributing
Non-Distributing
Non-Disiributirg
Non-Distributing
Non-Distributing
No'l-Distributing
Non-Gistibutiig
Nol-Dist*ibutllg
Ncn-Disthti'lg
Noq-Dist'ibLtiig
NO?i-DiSt;ibutI.lg
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Cistributing
Nc'l-Distribkting
Noi-Distribbting
Noi-Dist'ibLti'lg
Non-DisMbuting
Distributing (A)
Non-Dis!riouting
Noc-Distriou:ing
Nan-Distributing
Non-Dirtributi'lg
Non-Gistributiig
Noi-Distcibcting
Noi-Diskibhting
Nan-Distributing
Non-Dastributing
Non.Distribdtir;g
Nor.-Distributing
Nom-Distributing
DlStrlbJtlng(Ai
Non-Distributing
Non-Distributing
Non-lis?ributinq
Nor;-Distributing
Non-Distributing
Non-Distributing
Nonhtribbting
Non-Girt:ibctiig
Non-DistrinLting
Non-Distriouting
Distributing
NomDistributing
Non-Distributing
Non-Cistrihuting
Ncn-Cistributiig
Distributing (D)
NmD!stributing
Verrill Lynch International Investment Funds 65
Appendix F
GlobalBond Fucd (Euro)A3 EUR
Global Bond Furd (Euro) B1 E23
Global 3ond Furd (Euro) 82 EVR
Global aond Furd (Euro! C1 EUR
Global 3ond Furd i h r o ) C2 EUR
Global 3ond Fusd (Euro) E2 EUR
Global Bond Fund (US Dollar)Al USD
Global Eocd Fund VJS Dollar) A2 USE
Global Eocd Fund (SS Dollar)A3 USE
C-lobalBord Fund (US Dollarj B1 USD
GlobzlBord Fund (US 0oI!dr)E2 UJD
GlobalEocd Fund (US Dollar)Ct USE
GlobalBord Fund {US Doliar)C2 USD
Globzl Bond Fund (US Dolldr) C3 USD
Global Bord Fund(US Oollar)E2 USE
Global Dynamic Equity A2 USD
Clobal Dyramc Equ!tyA2 EUR
GlobalDycamic Equity 82 USD
GlobalDyrarnic Eqtiity92 EJR
GlobalDyramr Equity C2 UjD
Global Dyi!amic Equity C2 EUR
GlobalDyvavir Equity E2 USD
Global Dyrarnir Eqiiity E2 EUR
Global Equity Core Fund A2 US0
Global EqLity Core Fund A2 EUR
Global Eqirity Core Fund82 JSD
Global Equity Core FundB2 EUR
Global Equity Core FundC2 USD
Global Equity Core FundC2 EUR
Global Eqiiity Core FundE2 A D
Global Equity Core FundE2 FUR
Global Equi'q Core FundA4 DS GBP
EUR
EUR
EUR
EUR
EUR
EUR
EUR
D!stributir;g(N)
Distributing (D)
XOC-DiStribJ?fig
Distributing (9)
Non-Distribd! ng
Son-Distribmng
USD
USD
USD
USD
USD
tiSD
USD
USD
LiSD
Distributing (D)
Non-Distribu:.rg
Distributing(VJ
Distributing(0)
Nan-Distribumg
Distributing(3)
Non-DistriCxing
Olstributing(K)
Fion-Distr~b>i:ng
USD
EUR
USD
EUR
US0
EUR
USD
EUR
Non-Distributing
hon-Distribdting
tvon-3istrlbAing
Aon-Distrib>ting
kon-Distribhng
Non-Distribmg
kOfl-DiStribJtlng
hoc-Distr:ou!ing
USD
USD
EUR
VSD
EUR
USD
EUR
USD
EUR
UID
GBP
Non-Distributing
Non-Dis!ributing
Nor;-Disfributing
Non-D!str!buting
Non-Distributing
Non-Dwibuting
Non-Distributing
Non.D:srributing
Distr1bL:ing (A)
'EUR
EUR
EUR
EUR
EUR
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
US0
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
uSO
I+
SD
Global Equity Diversified Fund A4 USD
Global Equity Cwrsified Fund A2 USD
Global Equity Lversified Fund A2 EUR
Global Eqiiity Diversified Fund 82 U59
Global Equity Diversified Fund 82 EUR
Globdl Equity Diversified FLnd C2 USD
Global Equiry Civersified Fmd C2 EUR
Global Equiy DiversifiedFwd E2 USD
GlobalEquiyy Diversified k i d E2 EUR
USD
Global FundamentalValue A2 US0
Global FundamentalValue A2 EUR
Global Fundamentall'elue 92 USD
Global Fkidamenta: Vdue B2 EUR
Globel Fwdamenta'Value C2 USD
Globzl FLndamenta'Value C2 EUR
Globel ;cndarwntal Vatue E2 USD
Globil FundamentalVaiue E2 EUR
Globcl Fmdarental Value X 2 I'SD
USD
USD
USD
USD
USD
USD
LJD
LSD
2SD
USD
US0
USE
USD
USD
USD
USD
U5D
US0
EUR
US3
EUR
USD
EUR
USD
EUR
Distributing (A)
Nan-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distribumg
Non-DistribWng
Non-DistribJt!cg
Global High Yield Bond (ELro) A2 E i l R
Globai High Yeld Bond (EYOJA2 USD
Globa, High v d d Bond (ELIO) A3 EUR
Global High Yield Bond (EcT: A3 USD
Globa: High Yield Bond (Euo) E l EUR
Globa! High Yield Bond (Esro)E1 US0
Global High field Bond (Euo) E2 EUR
Globam HighYAd Bond ( E m ) B2 USD
Global High Y d d Bond (EbrojC1 EUR
Global HighYeld Bond (EKO)C1 USD
Global High Keld Borld(Era:2: EUR
Globai High Y eld Bond (Em) C2 USD
Globai HighY!eld Bond (Eti-o: C3 EUR
Globa: High %Id Bond (Euro)E2 EUR
Global High Yield Bond (Euo) E2 ilSD
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
EUR
USD
EUR
U5D
EUR
USD
EUR
Global Opportunities A2 USD
Globs! OpportunitiesA2 EUR
USD
USD
USD
USD
USD
USD
us0
US0
Global Opportunities82 LSD
Globa! Opportunities B2 EUR
Global Opportunities C2 USD
Global Opportunities C2 EUR
Global OpportunitiesE2 USD
Global 0ppo:tunities €2 EUR
Global High Yield Bond (Euro) A1 EUR
GlobalHigh Yield Bond(Euro)A! US0
GSD
EUR
EUR
66 Ncrrill Lynch International lnvestrrent Funds
EUR
US3
Non-Distributing
hor-Distr,bdiing
kor-Distrbuting
Nor;-Disir,buting
Non-D#j!ributing
Non-D.s!ributing
Non-D,siributing
Non-Distributing
Nan-Dmstributing
Distributing (0)
Distributing(Dj
EUR
USD
EUR
EUR
USD
EUR
USD
EUR
US0
EUR
US0
EUR
Non-Gist.ibuting
DistributiqgIM)
Non-Distributing
Non-Dtstribmg
Non-Distributing
Non-Disvibbting
Non-Distribktiig
Non-Distributing
Non-Distribl;ting
Non-Distribbting
Non-Distribcting
Non-Distribktino
Glabat SmallCap A2 USD
GlobalSmallCap A2 EUR
GlobalSmdllCap 82 USD
Glooal SmallCap 82 E M
tlooal Smalltap C2 USD
Glooal SmallCap C2 EUR
Global SmallCap E2 USD
Global SmallCap E2 EUR
USD
USD
USD
USD
USD
USD
USD
U5D
USD
EUR
USD
EUR
US0
EbR
US0
Japan A2 USD
JapanA2 EUR
Jman E2 USD
Japan B2 EUR
Japan C2 USD
Japan C2 EUR
Japan.I2 USD
Japan E2 EUR
Yen
Yen
USD
Yen
USD
?E
;
USD
EUR
USD
EUR
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributmg
Non-Distributmg
Non-Distribiiting
Noi-Distributing
Non-Distributing
Japan Opponunities A2 US0
Yen
Yen
Yep
US0
EUR
US0
EUR
USD
EUR
USD
EUR
USD
GBP
Non-Distributing
Ncn-Distributing
Non-Distributing
Non-Distributing
Non-EisYibuting
Yon-Distfibutiqo
qon-Distribktiig
Von-DistriCutiig
'4on.Distribbtilg
3istributing (A1
USD
ELlR
US0
EUR
Non-Distributing
\[on.Distributing
Yon-Distributing
'4on-DistribL;tino
Japan 0ppomnit:es A2 EUR
lapan Oppor!unities 82 US0
USD
EUR
USD
EUR
USD
EUR
US0
EUR
US0
USD
USD
Non-Eist:ibuing
Ncn-Gistributino
Cis:rib;ltiig ( M i
Dis:rib:itiig (MI
Distribdtiig (CJ
Distributing(0)
Non-Diskibuting
NowDistributing
DiStribJting(E;
DistribJtiig (0)
Norl-Gistributino
Yen
Yen
Yen
Yen
Yen
lapai Oppo*tunities82 EUR
JapanOppcrtunities C2 USD
l a p a l Oppomnitier C2 EUR
lapm Opportunities E2 USD
lapsn 0pportur.ties E2 EUR
Japan Opportur-tiesX2 USE
JapanOoportur,ties A4 DS G3F
Yer
Yen
Japan Value A2 USD
Japan Value A2 EUR
Japan Value B2 USE
Japan Value 82 EUR
Yen
Yen
Yen
Yen
Yen
Yen
Yen
Yen
Yen
Ed9
EUR
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distr>buting
Non-Distributing
Non-Dirtributing
Appendix F
Japdn Value C2 USD
Ve i
us3
Non-Disrribu:ing
Strategic Allocation (Euro) A2 EUR
EUR
EUR
Japan Value C2 EVR
Yfl
EUR
Stra?egic Ailocation (Edro) 32 EL?
EUR
Japdn Value E2 USD
Japan Value E2 EUR
Ye i
us2
EUR
hon-Dis!ribu:inq
hon-Dis:rihu:ing
Strategic Allocatioi (EuToi C2 EUR
Non-Distribumg
3:stribu: ng :A)
Strateyic Allocatio1 (Eu:o) E2 EUR
EUR
EUR
EUR
EUR
Japan Value A4 0 5 GBY
Yen
Yen
Latin A m e r i c a i A2 USD
USD
USD
Latin Arnericaq A2 GBP
La?in Americai A2 EUR
USD
KSD
GB'
EUR
Latin American B2 US3
Latin American E2 GBP
USD
USD
US3
GBS
La!in American 82 EUR
Latin American C2 US0
U5D
USD
FJR
Latin American C2 GSP
Latin American C2 EUR
US0
USD
Latin American E2 U53
Latin American E2 G9F
USD
USD
Latin American E2 EUY
US0
him-0 strih.iting
Latin American A4 DS 53P
USD
EJR
GBP
GB?
US9
Straxgic Allocation (US Dollar) C2 USD
US3
us3
US0
USD
Noi-Distrioutiig
GBP
GBP
EUR
Non-Distributing
Nc+Distriouting
USD
GBP
Noi-Distri$utilg
Non-Distrimting
GBP
EUR
GB?
Ge?
USD
GBP
Noi-Distri$utilg
Non-Distriouting
GBP
CBP
EUR
United Kingdom A2 GBP
United Kingdom A2 EUR
GEP
Son-k!ribAnq
Kor;-D sfribdting
United Kingdom A2 US0
United Kingdom B2 GS?
CJR
Nor-3,jfribJting
US3
GBP
hior-3mb:itisg
Uiiited Kiriydom 82 EUR
United Kingdom E2 USE
United Kingdom 2: GBP
United Kingdom 2: EUR
D.str o m n g (AJ
United Kingdom C2 US3
USD
Non-Distributing
United Kingdom E2 GBJ
United Kingdom E2 EUR
NGr.3 StfibiltiOg
Nor-3 rtrib:itirg
United Kingdom E2 USD
United Kingdom A4 DS GBP
USD
hlew Energy A2 EUR
hew Energy E2 USD
USD
EJR
U5D
EJR
hew Energy C2 USD
US0
USD
USD
hew Energy C2 EUR
US0
K e b EnPrgy E2 USD
hew Energy E2 EUR
USD
USD
he:v Energ) A4 OS GSF
USD
Now3 striodtirg
N ~ r . 9st:ibJticg
EJR
NGr .J.striuutiPg
GBP
Distr uLting (A)
Nov-3 stribdticg
US Basic Value A 4 USD
US Basic Value A4 EUR
U j Basic Value A2 JSD
US Baric Value A2 SBF
US Basic Value A2 EUR
GBP
USD
GBP
EUR
Non-Distriouting
Non-Distrioutiqg
Non-Distriouting
Non.Dis:rioutllg
Ncn-Cistiouting
GBP
GB?
US0
GB?
GBP
USD
USD
USD
EUR
Distributing (A)
USD
us0
USD
GBP
Non-Dis:rioutiqg
U53
USD
EUR
NunOstributing
Non-Distriouting
Noi-Dis!riouting
Diswbuting (p!
Dis:ributing {Ai
Non-Dis:rioutllg
USD
USD
GBP
US3
us0
EUR
USE
Noii-Distrioutilg
Non-Disxiouting
US3
USD
GBP
EUR
US Basic Value E2 USD
US Basic ValLe E2 SBP
us0
US3
USD
GBP
Noi-Dir!riouting
Non-Distri$utilg
Noi-Distrijuting
Nor.3 jtribAr:g
NGr-3 rtrib.iting
US Basic Valbe E2 EUR
US Basic Valce X2 U X I
us0
USD
EUR
US0
GB2
hior-3 sirib.itirg
Nor-3 strib.iting
US B~sic':aluc A4 OS G3P
US B a w Va1i.e Hedged A2 EUR
GBP
EUR
Diswbutmg (AJ
Noq-Distriouting
EJR
Kor-O 8:ribiting
US Basic V a l w Hedged E2 Ed2
EUR
Non-Distributilg
US Basic Value Hedged C2 EUR
US Basic V a l w Hedged E2 EUR
us3
us3
US9
US3
us3
EUR
EUR
Noi~Dislnouting
Noi-Distributiqg
Pacific Equity A2 US0
Pactc EqultyA2 GBP
USD
USD
USD
Nan-Distributing
GBP
Nor-] st!ihiitivg
Pa:iflc Equity A? EUR
USD
USD
EJR
UjD
h i o d st:ib~tirg
Nor-:, Stribdtlrg
USD
USD
CSD
GBP
b - 3W l b J t l C J
US Basic Value C? USD
US Basic Value C2 GBP
US Basir Value C2 EUR
EJR
u5r
Nor-3 StribJting
Nor-3 W C J W ~
Par?:( Eqcsty C2 GBP
Pac5c E w t y C2 E N
ilSD
GBD
USD
Pa+c Eol: ty E: US3
Paci:.c i m t y E? GBP
USD
LSD
EJR
us3
Pa<#; c E q ~ - t E?
y EUR
L'SD
Pa:.t;c Equity 32 EUK
Pa: i c Equ.ty CZ US3
GB'
GB?
CBP
Noi-Distributilg
her, 3 stribding
US0
EJR
USD
US Bdsic V d l w B2 JSD
Pacific Equity E? USD
Pa:!ic Eqc!ty 32 GBP
Non-Distributing
Noi-Distrijutiig
USD
U53
hion-D:s:ributing
Mac-D:s:ribiiting
Nor-3~s:ribAng
Non-Distrioutiig
US0
Strafegic Allocation (US Dollar) E2 USE
US3
Noi-DistriDutilg
EUR
Strategic Allocation (US Dollar) A2 US0
8tra:egc Allocation (US Dollar) 92 USD
don-Dis:ribu:ing
Non-Dis:ributinq
New Energy A2 USD
Kew Energy 82 EUR
Non-Distributing
\on-Dir:rihu!ing
Non-Distributing
Noi-Diarinuting
US Baric Value E2 GBP
US Basic Value E2 E X
Non-Distriouting
Non-Dis:rioutiiq
Ncn-Gistributing
Noi-Distriouting
Short Duration Eond A1 EUR
EUR
EUR
Shor! C b r a t i x Bond A2 EUR
E"?
EUR
FUR
US Dollar Core Bond A1 USD
US0
USD
Distributing (D)
E59
EL9
ELK
EUR
US Dollar CGre Bond A2 EUR
USD
FUR
EL?
ESi
E22
EUR
EUR
US Dollar Core Bond a i VSD
Non-Distri3utiig
Noi-Distrbuting
Cin:ibutmg (Mi
Short Dbralion Bard C2 EUR
Short Dbratior Bond E2 EUR
EUR
US Dollar Core Bond 52 i'SD
us3
us3
US3
us3
U53
US Doliar Core Bond C1 US0
us3
Sterling Reserve A2 GBP
GBP
GBP
Non-Distributing
US Dolldr Core Bond C2 USD
US3
Sterling ReservE 82 GBP
GBP
GSP
GP
CB'
'.on-Dis:ribd:ing
Son-Dir:ribu:ing
US Dollar Core Bond C3 USD
US Dollar Core Bond E? USD
G3F
GB2
Son-Dijtr!buring
US Dollar Core Fond X2 USD
us3
us3
US3
GSF
GBP
D:stribu: no (\I)
Shor: DLratior Bond A3 EUR
Sho:? DLretior' Borid 61 EU?
Short DLratior. Eond 62 EU?
Short Gbratior. Bond C i EUR
Sterling Resew6 C2 G9P
Sterling Reserve E2 GBP
Sterling Reserve A3 DS GB?
EclR
USD
USD
USD
Dis:ributing (D)
Noi-Distriuutiag
USD
US0
Disxbuting (C)
USD
Dis::ibuting (Uj
us0
USD
Noi-Distributiig
NovDislriouting
Noi-Distrigutiig
hrerrill Lynch International I n v e s t r e n t Funos
67
Appendix F
US Dollar High Yield Bond A1 USD
US Dollar Higl Yield BondA2 US0
US Dollar k g i Yield Bond A3 USD
US Dollar H~ghYeld Bond B1 USD
US Dollar High Yield aond BZ USD
US Dollar High Yield Sond C i USD
US Dol:ar High Yield Bond C2 tiSD
L.8 Dcla High Yield Sold C3 L.50
bS Dollar High Yield Sond E2 US3
USD
USD
USD
llSD
USD
USD
us3
US0
USD
USD
USD
USD
Distributing (D)
Non-Distributing
Diskouting (MI
Distr'buting (0)
Non-Distributing
Distributing (Df
Non-DistribuIing
Distnbutir;g(M)
Non-DistribJ?ing
US Dollar Reserve A2 USD
US Dollar 3eserve B2 USD
US Dollar Resen,e C2 USD
US Dollar Rereve E2 USD
USD
USD
USD
USD
USD
USD
USD
Non-Distributing
hon-Disiributirg
Non-Db?ributing
Non-Distributing
US Flexible Equity A2 USD
US FlexibkEquityA2 EUR
VS Flexible Equity E2 USD
l j S Flexible Equity B2 EUR
LS Flexible Equity C2 USD
1;s Flexible Equity C2 EUR
C S Flexible Equity E2 NI
US Flexible Eqiiity E2 E X
US Flexible EquityA4 35 GB3
US :lexible Equity HedgedA2 EU9
US Flexible Equity HedgedC2 EUS
US Flexible Equity HedgedE2 EUR
US0
USD
USD
US0
US0
EUR
USD
EUR
USD
EUR
USD
EUR
GBP
EUR
EUR
EUR
Non-Distributing
Nor,-Distributing
Non-Distributing
Non-Distributing
Non.DisIributing
Nan-Distributing
Non-Distributing
Non-Distributing
Distributing(A)
Non-Distributing
Non-Distributing
Non-Distributing
US FocusedValue A2 USD
US FocusedValue A2 EUR
US Focuseo Value E2 USD
US FocusedValue 82 EUR
US F o c u m M l d e CZ USD
US FocusedValue C2 EUR
US Focused Value E2 USD
US FocusedWde E2 EUR
US Focured W e A4 DS GBP
US FgcusedValde Hedged A2 EUR
US FocusedValx tiedged BZ EUR
US FocuredVzlile *edged CZ EUR
US FocusedValue Hedged E2 EUR
USD
USD
US0
USD
USD
USE
USD
us0
USD
USD
US0
LISD
1150
US0
USD
USD
US0
USD
EUR
US0
EUR
USD
EUR
USD
EUR
GBP
EUR
EUR
EUR
EUR
USD
USD
liSD
USD
USD
bSD
US0
VSD
L'SD
USD
LSD
US Govt Mortgage A1 USD
US G w t Mortgage A2 VSD
US Govt Mortgage A3 USD
US Govt Mortgage 6 1 USD
US Govt Mortgage 92 USD
US Goi't Mortgage C 1 USD
US Govt Mortgage C2 US0
US G w t Mo:tgage C3 USD
US Govt Mortgage E2 USD
US Govt Mortgage X2 US0
USD
US Growth A2 USD
US Growth A2 EU9
US Growtb E2 L'SD
U5 Growth B2 FUR
US Growth C2 USD
CS
lD
VSD
LSD
CSD
L'SD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
LSD
USD
USD
USD
US0
EUR
US0
EUR
USD
GSD
USD
USD
US0
Non-Distributing
Non-Dis:r.bJ:!ng
Non-Dss?rind?ing
Non-D;s:r o d n g
Non-Dlstr:b>i:ng
Non-Distr'm?:ng
Non-Distr!bJ?ng
hlon-D!s!r,bd!.ng
Distribur rg (A)
Non-D,str,bu?,ng
h'on-D,s:r.bu:sng
Non-D8r:r,but.ng
Non-D;str!but!r.g
Distributing (D)
h'on-D's?r.butr;g
Distribwng (L?)
Dsstribur(rg(3)
Non-Dlsir bmng
Distribmg !O)
Non-D;s:r%bJ: ng
Distribu!ing (Vi
Non-Distribd?ing
Lon-Distr:butmg
Non-Distributing
Non-Distr:b>t:ng
Non-Distrxbd?mg
Non-Distributing
Non-DistribJ!ing
US Growth C2 EUR
USD
USD
USD
USD
EUT
US0
EUR
USD
Noi-Distributing
Nci-Cistributing
Non-Cistributing
Non-Disyibiting
US Opportunities A2 USD
US Opporwiities a2 IAD
US Oppozdnities C 2 US0
US 0ppo.tunities E2 USD
US 0pporiuni:ies A2 EUR
US Opportunities82 EUR
US OpportunitiesC2 EJR
US OpportunitiesE2 EUR
USD
US0
USD
USD
USD
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
No?-Distributing
US Small Cap Value A2 USD
US Small Cap Value A2 EUR
US Small Cap Va!ue82 USD
US Small Cap Value 82 EUR
US Small Cap Va:ueC2 US0
US Small CanVam C2 FUR
US Small C a n Vake €2 USD
US Small Cao Vake EL EUR
USD
USD
USD
us3
USD
us0
us3
USD
us0
US0 Low Duration Bond A1 USD
USD tow DbrationBondA1 EUR
USD tow Duration 9ond A2 USD
USD tow Duration Sond A2 EUR
USD Low Ouration BoadA3 USD
USD Low Juration BcndA3 FUR
USD Low Duration Bond6 1 USD
USD Low Duration BondE 1 EUR
US0 Low Ouration Boad82 USD
US0 Low DurationBond 82 EUR
US0 Low Ouration BondC 1 USD
USD Low Duration BondC 1 EUR
USD tow DurarionBondC2 USD
USD tow DuraIionBocdC2 EUR
USD to'w DurationB0r.d E2 USD
USD Low DurationBondE2 EUR
USD
US0
USD
USD
USD
USD
USD
USD
US0
USD
USD
USD
USD
USD
USD
USD
USD
World Bond FundA1 US0
Wodd Bond FundA2 USD
World Bond Fwd A3 USD
World Bond Fund B1 USD
World Bond Ftind C l USD
World Bond Fund E2 USD
USD
USD
USD
USD
USD
USD
USD
USE
World EnergyA2 US0
World EnergyA2 EUR
lVorld Energy 82 USD
World EnergyB2 EUR
World EnergyC2 US3
World EnergyC2 EtiS
World EnergyE2 US3
World EnergyE2 EUR
Woflo EnergyX2 US0
World EnergyX2 EUR
World Ewgy A4 DS GEP
USD
USD
US0
USD
USD
USD
USD
USD
USD
USD
USD
USD
EUR
USD
EllR
USD
EUQ
UjD
EllR
USD
Uj Growth E2 USD
US Growth E2 EUR
US Growth X2 X D
USD
US0
USD
USD
USD
USD
USD
Eu'R
EU3
EUR
EUR
EUR
US0
EUR
USD
EUR
USD
FUR
E,: R
USD
EuR
USD
Ell9
USD
E N
USD
EU9
USD
E M
USE
EUR
USE
EUR
USE
USD
USD
USD
EU9
GBP
Non-Distributing
Non-Distribcting
Non-Datfibiting
Non-Distribbting
Non.Distributiig
Non-Distribitii?
NowDistributing
Non-Distributing
Distributing (D)
DistributingiDj
Non-Distrhuting
Non-Distributing
Distributing (M)
Distributing(M)
Dis!ributing (0)
Distributing(0)
Non-Distributing
Non-Distributing
Distributing (0)
Cis?ributing(0)
Non-Eistnburmg
Non-Cistributing
No'l-Distributing
No;l-Cistributdng
Distributing (D)
Non-Distributing
Non-Distributing
Gis!ributing (D)
Distributing (0)
Non-Gistributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non.Distributing
Non-Distributing
Disrributing(A)
Appendix F
World Financials A2 US0
World i;nancialsA2 EUR
Vlo:;d Financial$62 USD
WoVorid Financials82 Eli!
Wor'd Financial5C2 USD
World Financials C2 EUR
Wodd hanrialr E2 USD
Worid Firiancialr E2 EUR
US0
USD
usc
EUR
USE
UjD
USD
US0
USD
EUR
USE
usc
EUR
USD
usc
EUR
World Gold A2 USD
World Gold A2 EJR
Wor:dGold 82 JjD
US0
US0
UjD
EUR
USD
LSD
Wo:id Gold 62 !UR
USD
EUR
World Gold C2 uSD
Wopld Gold C2 :JR
USD
CiSD
USD
World Gold E2 CSD
UjD
USD
EUR
USD
Wo*!dGold E2 E3R
World Gold X2 EUR
USD
USD
EUR
Non-Distributing
Non-3istribdting
bSD
EUR
Non-3w!oJ:ing
Nor-) stribding
Non-3:strlbu:ing
Non-3:r:r:baiinq
F!on-3,stribJtinq
Kor-?istrib&ng
Distributing (D)
3:str buting ( 3 )
kor-Di$tribu::ng
Nor-Distribuflng
Dlstr.buting('4
bstr buting :La)
USD
5SD
EUR
LSD
FUR
World Income A1 USD
Worid Income A1 EUR
World :xomeA2 US0
Wofid lntome A2 EUR
World kame A3 USD
World income A3 EUR
World irtome 51 USD
World 'rcome 81 EUR
World Ircorne 62 USD
World !rromp B7 EUR
World Ircorne C 1 USD
World h o m e C 1 EL3
Worldlncomc C2 Uj3
World Income C2 EU3
World Income E2 US3
World Income E2 EL9
Wxld Income 13 US3
USD
USD
USD
US0
EUil
USD
usc
usc
E M
USD
UjD
USD
UX
EUR
USD
USG
US0
usc
EUR
USD
World Mining A2 USD
World Miniig A2 EJR
World Mining 62 USD
World Mining 32 EUR
Wo+'dMining C2 clSD
World Minmg C2 FUR
World Mining E USD
World Mining E EUFi
Wor:d Mining X US0
Worid Mining A4 DS GBP
llsc
UjD
US0
USD
us0
USD
Xor.-Dirtribu:,ng
hor-Distribut.ng
Vor-Distrihu::ng
EUR
EUR
USD
USD
Lor-Dist!ibu:,ng
Non-Distributing
Non-3~strihmng
hiop-3,str!bd:ing
hioP.3,stCbJ:lng
Nor-Oistr,bd:ing
Non-J,stribd:ing
Non-Oistribdmg
Non.3istrloJiinq
Nor;.36tributmg
World Healthscience A2 USD
Wwd Healthscifice A2 Ell?
WG'!d Healthsaeice 82 US3
World Healthscieice82 EU9
Wor!d Hedlths(iei(e C2 US3
Wo:ld HealthscieiceC2 EU?
Ww!d Hea'thscieite E2 US0
World Healthscieite E2 EUR
USD
USD
Non-Distributing
kon-Distribut rq
Roi'-Dirtrihu: vg
hoc Distribu:,rq
EUR
US0
E M
USD
EUR
USD
us0
USD
EUR
usn
US0
USD
US0
USD
US0
US0
USD
ilSD
EUR
US3
JSD
LSD
US3
EUR
EUR
US0
EUR
LSD
bS0
LSD
GE?
World Technology A2 USD
Worlo Technology A2 EUR
World Technology A2 GPP
World Technology 82 USD
World Technclogy B2 GBP
World Technology E2 EUR
Worlo Technology C2 USD
WorldTechology C2 GB?
Worlo Techoloyf C2 EUR
Worlu Techology E2 USD
florla Techology E2 GBP
Worlu Techlogy E2 EUR
USD
USD
us0
USD
EUR
GBP
USD
LSD
US0
GEP
USD
EUR
USD
USD
USD
USD
GBP
EUR
USD
USD
USD
GBP
USD
EUR
Non-Distributing
Non-DisVibuting
Non-Distributing
Noi-Distributing
Non-Distributing
Non-Dist'ihuting
Non-Gistributing
Non-Dirtrihbting
Ncn-Diskibuting
Non-Distributilq
Non-Distribctiig
Non-DistribLting
I!rtr.buting(3)
D.str,uuting( 3 )
Nor-Distrihut ng
horOstribu!q
D stributing (9;
D'stributing(01
Lon-Distributirg
hmDistrihot;sg
Non-Dirtribut:rg
Non-Distributr g
D.stributing( N )
NowDirtributing
Non-Dirtrihutlrg
Non-Distributhg
Non-Distributirg
Non-Dis:ributing
Non.Dis:ributina
Non-Disfr.btitino
Non-D:r!r buting
Non-Di:r oiltiy
Distribb: 1'9(AI
Iderrill Lynch International Investment Funds 69
Summary of Subscription Procedure and Payment Instructions
Application Form
For :nitla' subscriptions for Sha-es yo0 must complete the applicatior
form w+.ch may be obtained +om the Transfer Agent or the lnvestoi
Service Centre and the form mbst be signed by a:I joint applicants
by fax or
Subsequent subsc-ipt!ons may be made in wri:.rg
telephone, stat r g your reg.stration detai!s and the avourt io be
irvested If yoLr app ca: on is be,T)gwbmitted by yod- professional
adviser, sec:ior 5 of t i e application form should be comple:ed.
Completed applicatior forms mbst be sen: to the Transfer Agent or
the Investor 5erv:ce Centre
JP Morgan Chase New York
SWIFT code CHASUS33
For the account of Merrill Lynch Investment Managers
(Channel slands) Limited
Account NJrnber 001-1-460185. CHIPS UID 359991
ABA Number 02 100002 1
Quoting Reference "Name of Fund - Name of Appltcant"
07
JP Morgan Frankfurt
SWIFF code CHASDEFX, BLZ 501 108 00
For the account of: Merrill Lynch Investment Mandgers
Money Laundering Prevention
P!ease read t+e notes on the application form regarding the
ider:f cation documents required ard ensure that you provide these
to t i e Pansfer Agent or the Investor Service Centre together wmrb
y o ~ application
'
form
Account Number (IBAN) DE40501108006161 600066
ffor6erly 616-1 6-00066)
Quoting Reference ,"Name of Fund - Name of Applicant"
An applicant's obligation to pay for Shares ISfulfilled once the
Payment
Your cneque or a copy of your telegraphic transfer instrudions
should be supplied with y o u applica:,on (see sections 4 to 6 below).
JP Morgan London
SWIFT code CYASGBZC, Sort Code 60-92-42
Payment by Telegraphic Transfer
Payment by SWIFT/bank Vaqsfer in tke relevart cwency should be
made to one of the accoLr':s oppos,te. The SWIFT/bank transfer
1cs:rudion should c0nta.r ;?e followirg informat on:
(formerly 1 11 18940)
Quotinq Reference "Name of Fund - Name of Applicant"
..
h
0 BankName
SWIFT Code or Bank Identifier
Account
( v ) Account Number
(v) Account Reference - "MLIIF - Fuid name sbbscrlbed into"
(vi) By order of [Siareholder name/agent name & SqarePolder
numberlagent numbe'l
(I)
(11)
Account JP Morgan London
Account number 023000000441290500008
For the account of Merrill Lynch Investment M
(Channel Islands) Ltd
:
>
Accouq;fjurnbet
(IBANJ GB56CH$609242 17354
i (formerly*?735~70) x
Ref "Name of Fund -Name of Applicant"
Payment by Cheque
As payment by cheque may de,ay dealing un:ii cleared fmds have
been received, payment by telegraphic transfer is strong!y
recommended. Your cheque, made payable to "Merrill Lynch
Investment Managers (Channel Islands) Limited" and drawn on a
ban? accobnt in the country or countries of the relevant currency
shoid accompacy your application.
i
elsbanken Stockholm
SWIFT code HANDSESS
Account JP Morgan London, Account number 40386589
(Channel islands) Ltd
Accomt Numoer (IBAN) GB80CHAS60924222813401
(formerly 2281 3401)
- Name of Applicant"
'*
Foreign Exchange
If yo^ wish to make payment iq a cwrency other than that in the
Dea r g Currency (or one of the Dea ir,g Currencies) of your cbosen
c.z
:,.
. 'Y. i-
> '...1
97
,
:
Fay JP Morgan Hong Kong
'
Furd (see page 2 of this Prospectus), this must be made clea, a: the
time of appl1catio:r
E
SWIFT code CHASHKHH
Account JP Morgan London, Account numb& 6743197680
Account Number (IBAN) GB24CHAS60924224466319
(formerly 244663 19)
Pay JP Morgan Tokyo
SWIFT code CHASJPJT
Account JP Morgan London, Account number 195006713
Account Number (IBAN)
222813405
(fdrmerty 22813405)
Ref "Name of Fund - N
.s
7C Merrill Lynch InternationalInvestment Funds
-
.
II
9
i
PRISMA 06/1102 MLllF PROS ENG 0306
I

Merrill Lynch International Investment Funds

Transcription

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