Merrill Lynch International Investment Funds

Transcription

BMerrillLynch Investment Managers
www.mliminternationaI.com
Prospectus
....
.
....
_ .....
..
..
Contents
Page
Introduction to Merrill Lynch International Investment Funds
2
General
3
Distribution
3
Management and Administration
4
Enquiries
4
Board of Directors
5
Glossary
6
Investment Management of Funds
8
Special Risk considerations
9
Excessive Tradiqg Policy
17
Investment Objectives & Policies
17
Classes and Form of Shares
25
Dealing in Fund Shares
26
Prices of Share;
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 - livestrnent and Borrowing Powers and Restrictions
36
Appendix E - Summary of Certain Provisions of the Articles and of Company Practice
41
Appendix C -Additional Information
48
Appendix D - Authorised Status
55
Appendix
E -Summary of Charges and Expenses
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 K I T S (Undertaking for
Collective Investment in Transferable Securities) It has an
Choice of Funds
"umbrella" structure comprising a number of different Funds,
As of the date of this Prospectus, investors are able t o choose
each having a separate portfolio o f 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 Fund (E)
ERIC Fund* (E)
Conservative Allocation Fund (Euro) (M)
ConscwativeAllocation Fund (US Dollar) (M)
Continental European Growth Fund (E)
Corporate Bond Fund (Euro) (until 31 July 2006) (6)
Emerging Europe Fun&(E)
Emerging M d e t s B o b F s d (8)
EGergingMaikets Funb (E)
Euro Bond fund (B)
Euro Corporate Bond fund (effective 31 July 2006) (6)
Euro-Markets Fund (E)
European Fund (E)
European Focus Fund' (E)
Eunlp&n
Furid (Et
2
~
Eu+an
kurog!an i&kkind~E)
Euro ?tesed Fuh8 IB)'
Glonal Allocation Fund (M)
Global Bond Fund (Euro) (8)
Global Bond Fund (US Dollar) (B)
Global Capital SecuritiesAbs
Global Dyiiamic E d d y Fund (E
Global E&y C o m o d (E)
Giobal Eqcity Div&<died Fund
Global Fo&s Fun&&)
Global Fuhdamen6l i'alue Fu
Global G$Wh fu% (E)
Global Hiah Yield Bond Fund (
'
Global Opportunities Fund (E)
Global SmallCap Fund (E)
Greater China Fund* (E)
India Fund* (E)
Japan Fund (El2
Japan Opportunities Fund (EF
Jdpan Value Fund {E)'
Gtin A&rican Fund (E)
i
New Energy Fund (E)
Pacific Equity Fund (E)
Short Duration Bond Fund (Euro) (6)
Sterling Reserve Fund (8)
Strategic Allocation Fund (Euro) (M)
Strategic Allocation Fund (US Dollar) (M)
Thailand Fund* (E)
UK Focus Fund' (E)
P
e
us5
<
e
e
e
USJ
uss
e
US$
e:
US$
e
e
ud
e
e
us$
e
US5
US$
IC
e
e
e
us5
US$
f and US$
6
e
us5
e
us4
E,
US$
f
US9
US5
e
e
e
US5
US$
US$
e
€
US$
US$
E
US%
US$
e
us5
f and B
€
e
e
US$
US$
US$
US$
US$
f ande
US$
e
$7
v*
f
t
d
US Basic Value Fund (E)
US Dollar Core Bond Fund (8)
US Dollar High Yield Bond Fund (E)
US Dollar Low Duration Bond Fund (B)
US Dollar Reserve Fund (B)
US Flexibk Equity F h d (E)
-k T
US FocusedValue Fund (E)
US Government Mortgage Fund (B)
US Growth Fund (E)
US Opportuniues Fund (E)
US SmallCap Value Fund (E)
2 Merrill Lynch International Investment Funds
>
a
US$and€
World Energy Fund (3
World Financialr; Funa (E)
World Gold Fund (E)
US$
World Healthscience Fund (E)
World Income Fund (B)
World Mining Fund (E)
Wortd Technology Fund {E)
US$
us$
US$
us4
US$
US$
* Fund not available for suhscriotion a the date of this Prospertur Such Funds may be launrhed a t the Directors' discretion Confirmation of the launch date of
these Funds w II then be made available at the Investor Service Centre Any provisions in this Prospectus relating to any one of these Funds shall only take effect
from the launch date of the relevant Fund
I
Fund is only registered in Luxembourg, Germany and Switzerlana
' With effect from 29 May 2C06,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
M Mixed Fund
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 a r e 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 for you, y o u should consult y o u r stockbroker,
solicitor, accountant, relationship m a n a g e r
or o t h e r
Statements made in this Prospectus are based o n the law and
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 o n page 4,
Distribution
are the persons responsible for the information contained in this
This Prospectus does not constitute an offer or solicitation
document To the best of the knowledge and belief of the
by anyone in anylurisdiction 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 is
or solicitation is not qualified to do so or t o anyone t o w h o m
in accordance w i t h the facts and does not omit anything likely
it is unlawful to 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 are contained in Appendix D. 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 g o down 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 to subscribe for Shares should b e m a d e on t h e
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 w h i c h
is issued b y t h e Company a n d in t h e m o s t recent a n n u a l a n d
24 March 2006
(if later) i n t e r i m r e p o r t a n d accounts of the Company which
are available f r o m t h e registered o f f i c e of t h e Company.
Merrill 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 TrPves, 1-2633 Senningerberg, Grand Duchy of
Luxembourg
Investment Advisers
Merrill Lynch Investment Managers Limited
Paying Agents
33 King William Street, London EC4R 9AS. UK
A list of Paying Agents is to be found on page 49.
Fund Asset Management, L.P.
Registered O f f i c e
800 Scudders Mill Road, Plainsboro, NJ 08536, USA
Aerogolf Centre, 1A Hoehenhof, L-1736 Senningerberg,
Luxembourg
Investment M a n a g e r a n d Principal Distributor
Merrill Lynch Investment Managers (Channel Islands) Limited
Enquiries
Forum House, Grenville Street, St. Helier, Jersey JE4 8RL,
In the absence of other arrangements, enquiries regarding the
Channel Islands
Company should be addressed as follows:
Written enquiries: Merrill Lynch Investment Managers, d o
Investor Services
J.P. Morgan Bank Luxembourg SA.,
Written Enquiries: Merrill Lynch Investment Managers, d o
Luxembourg.
J.P. Morgan Bank Luxembourg S.A., P.O. Box 1058, L1010
All other enquiries: Telephone. + 44 207 995 6655,
Luxembourg
Fax: + 4 4 207 743 1143.
All other enquiries: Telephone: + 44 207 995 6655,
Fax:
+ 44 207
743 1 143
Custodian
The Bank of New York Europe Limited. Luxembourg Branch
Aerogolf Center, 1A Hoehenhof, L-1736 Senningerberg,
Luxembourg
Fund A c c o u n t a n t
The 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 TrPves, L-2633 Senningerberg,
Grand Duchy o f Luxembourg
Auditor
PricewaterhouseCoopers
400 route d'Esch, L1471 Luxembourg
Legal Advisers
Linklaters Loesch
Avenue John F. Kennedy 35, L-1855 Luxembourg
4 Merrill Lynch international Investment Funds
P.0 Box 1058, L-1010.
Board of Directors
Chairman
Robert Fairbairn
Managing Director, Chief Operating Officer, EMEA Pacific
Directors
Frank P. Le Feuvre
Managing Director, Merrill Lynch Investment Managers
(Channel Islands) Limited
Forum House, Grenville Street, St. Helier, Jersey JE4 8RL.
Channel Islands
Geoffrey Radcliffe
Director and General Manager
6D route de TrPves, L-2633 Senningerberg, Luxembourg
Jean-Claude Wolter
Avocat Honoraire
232, rue Edith Cavell, B-1180Brussels, Belgium
Andrew Donohue
First Vice President, General Counsel
Merrill Lynch Investment Managers, 1.P.
Princeton, New Jersey, USA
James Charrington
Managing Director, Head of Retail Business, EMEA Pacific
33 King William Street, London EC4R 9AS, UK
Ernilio Novela Berlin
Independent Director
Paseo de la Castellana 40 bis - 4a Planta, 28046 Madrid, Spain
Merrill Lynch InternationalInvestment 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 the Hedged Share Classes may be
Business Day
available and the date of their launch can then be obtained from
In relation t o Shares of any Fund, any day normally treated as a
the registered office o f 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 of the Prospectus. All
CDSC
the shareholders of the respective Hedged Share Classes
gainsAosses from hedging transactions are borne separately by
Contingent deferred sales charge.
Investment M a n a g e r
D e a l i n g Currency
Merrill Lynch Investment Managers (Channel Islands) Limited
In relation t o Shares of any Fund, the currency or currencies
acting either in its capacity as Investment Manager or in its
indicated o n page 2 as at the date of 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 registered 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 of the Prospectus.
Group company that may perform such functions from time t o
time) for dealing and investor servicing functions.
D e a l i n g Day
In relation t o Shares of any Fund, any Business Day (other than
one falling within a period of suspension).
M a n a g e m e n t Company
Merrill Lynch Investment Managers (Luxembourg) S.A., a
Luxembourg societe anonyme authorised as a management
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 declared o n 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 dividends may be declared will then be
UClTS and for which the investment adviser is Merrill Lynch
made available from the registered office of the Company and
Investment Managers, L.P. or Merrill Lynch Bank (Suisse) S.A. or
from the Investor 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 Investment Managers Limited.
Prospectus.
M L Group
Funds
The Merrill Lynch group o f companies, the ultimate holding
The funds of the Company described in this Prospectus.
company o f which is Merrill Lynch & Co., Inc.
H e d g e d Share Classes
M L l M Group
Those Share Classes 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
of the ML Group.
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.
N e t Asset Value
In relation t o a Fund or a Share (of any Class), the amount
determined in accordance w i t h the provisions described in
paragraphs 11 t o 16 o f 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 docurnen:.
Share
A share in the capital of the Company, as described in this
Prospectus.
Share Class
The class of share in each case o f no 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.
UK D i s t r i b u t o r Status Funds and UK 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 for Shares o f
other Funds and for other Share Classes or Dealing Currencies o f
these Funds and 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 of the Company and from the
Investor Service Centre. An updated list of available UK
Distributor Sta:us funds, Share Classes and Dealing Currencies
will be included in the next version o f the Prospectus.
Merrill Lynch international Investment Funds 7
Investment Management of Funds
Management
The Management Company has delegated its investment
The Directors are responsible for the overall investment policy
management functions t o the Investment Manager, w h o in turn
of 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) S.A. has been
selection and strategic allocation. One of the Investment Advisers,
appointed by the Company t o act as its 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 w i t h 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 Management Company and t o the Company for all
The Company has signed a management company agreement
investment transactions, subject t o the direction of the
(the "Management Company Agreement") with the
Management Company's Directors. Merrill Lynch Investment
Management Company. Under this agreement, the Management
Managers Limited a150 acts as the Investment Manager t o the
Company is entrusted with the day-to-day management o f the
Subsidiary.
Company, with responsibility for performing directly or by way
of delegation all operational functions relating to the Company's
Investment Advisers
investment management, administration, and the marketing
Merrill Lynch Investment Managers Limited is the principal
of the Funds
operating subsidiary of Merrill Lynch Investment Managers Group
In agreement w i t h 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
Limited, which is a subsidiary
of Merrill Lynch & Co., Inc
Managers Limited for the purposes of the FSA Rules and will
in this Prospectus.
accordingly not directly benefit from the protection o f those
The directors of the Management Company are:
Rules
Frank P Le Feuvre
Merrill Lynch Investment Managers Limited forms part of the
Managing Director, Merrill Lynch Investment Managers
MLlM Group. The MLlM Group currently employs over 3,000 staff
w h o provide investment management services internationally for
Forum House, Grenville Street, St. Helier, Jersey JE4 8RL.
institutional, retail and private clients. The MLlM Group has over
Channel Islands
US$539 billion of assets under management and is represented in
James Stratford
the global activities o f which include not only those of the MLlM
First Vice President, Global Head of Compliance
Group, but also investment banking and securities brokerage
businesses.
18 countries. The ML Group is a major financial services group,
Fund Asset Management, L.P. was established 01: 15 December
Geoffrey Radcliffe
1976 and is regulated by the Securities and Exchange
Director and General Manager
Commission. It has over USB133 billion o f assets under
management. It is also a directly owned operating subsidiary of
6D route de Treves, L-2633 Senningerberg, Luxembourg
Merrill Lynch & Co., Inc. and forms part of the
MLlM Group
15 a
wholly
owned subsidiary within the ML Group. It is regulated by the
Commission de Surveillance du Secteur Financier. Merrill Lynch
Investment Managers (Luxembourg)
SA
Group
forms part of the M U M
Special Risk Considerations
Investors must read these Special Risk Considerations before
investing in any of the Company's Funds.
This section contains explanations of some of the risks that
apply t o the Funds. Not all risks apply t o all Funds and the
following table sets out the risks that, in the opinion of the
Investment Manager, could have significant impact t o the
overall risk of the portfolio. Investors should be aware that
other risks may also be relevant t o the Funds from time to
time.
Merrill Lvnch International Investment Funds 9
x x
i
x x
x x x
X
X
x
x x
X
> >
x
x
m
aA
E
r
DL
x x x x
x x x x
x x x x
: x x x x x
X
x x
X
x x x
x x x x
x x
x'5x x
x x
,*
x
x x x
X
x x
x x
x x
x x x
x x
X
x
X
:
,
x x x x
x x x x
x
X
x x x x
x x x x
X
X
x
x
I
x x x
X
Merrill Lynch International Investment Funds 1 1
General
emerging markets may have a low level of regulation,
There can be no assurance that the investment objectives of each
enforcement of regulations and monitoring of investors' activities
Fund will be achieved Also, past performance is n o guide t o future
Those activities may include practices such as trading o n material
performance, and the value of investments may go down as well as
non-public information by certain categories of investor.
up. Changes in rates of exchange between currencies may cause
the value of a Fund's investments to diminish or increase.
The securities markets of developing countries are not as large as
the more established securities markets and have substantially
Emerging M a r k e t s
less trading volume, resulting in a lack o f 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 investment, are of particular significance in certain
capitalisation and trading volume in a small number of 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 ) m a y include
concentration of investors and financial intermediaries. These
investments in certain smaller a n d e m e r g i n g markets, which
factors may adversely affect the timing and pricing o f 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 are 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 regulation.
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 d o
issuers. The possibility of fraud, negligence, undue influence
environmental problems. Certain economies also depend t o a
being exerted by the issuer or refusal t o recognise 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 be affected by a variety of factors.
should therefore be aware that the Funds concerned could suffer
In adverse social and political circumstances, governments have
archaic legal systems a Fund may be unable t o make a successful
been involved in policies of expropriation, confiscatory taxation,
claim for compensation.
loss arising from these registration problems, and as a result of
nationalisation, intervention in the securities market and trade
settlement, and imposition 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 taxes on investment income, some
markets, these may be reduced when there is a low correlation
emerging markets may 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.
Generally accepted accounting, auditing and financial reporting
Investments in Russia are currently subject to 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 in developed markets. Compared t o mature markets, some
Russia, this is evidenced by entries in the books of a company or
12 hlerrill Lynch international investment Funds
its registrar (which is neither an agent nor responsible to the
Custodian).
No certificates representing ownership o f Russian
companies will be held by the Custodian or any correspondent or
governmental entities. There is no bankruptcy proceeding by which
Sovereign Debt on which a governmental entity has defaulted may
be collected in whole or in part.
in an effective central depositary system. As a result o f this system
and the lack of state regulation and enforcement, t h e Company
Restrictions on Foreign Investment
could lose its registration and ownership o f 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 of
exposure t o no more than 10% of its Net Asset Value, except for
investment by foreign persons in a particular company, or limit
investment in securities listed on either the Russian Trading Stock
the investment by foreign persons in a company to only a specific
Exchange or :he 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 on such investments, may have an
obligations (”Sovereign Debt”) issued or guaranteed by developing
adverse impact on the operations of a Fund. For example, a Fund
governments or their agencies and instrumentalities (“governmental
may be required in certain o f 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 of 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 entity’s
resulting in a delay during which a Fund may be denied certain of
willingness or ability t o repay principal and interest due 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 of 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 b u t is
sufficient fore.gn exchange on the date a payment is due, the
subsequently informed, at the time of 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 of the ability t o make its desired investment at
Fund and the political constraints to which a governmental entity
the time. Substantial limitations may exist in certain countries
may be subject. Governmental entities may also be dependent on
with respect to a Fund’s ability t o repatriate investment income,
expected disbursements from foreign governments, multilateral
capital or the proceeds of sales of securities by foreign investors.
agencies and others 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 o n 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 of any restriction
be conditioned on a governmental entity‘s implementation of
on investments. A number of countries have authorised the
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
reforms, achieve such levels of economic performance
or repay
indirect foreign investment in their capital markets. Shares o f
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 to 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 o f expenses in the Fund (including management fees) and,
entities may default o n their Sovereign Debt. Holders o f Sovereign
indirectly, 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.
Fixed Income Transferable Securities
Capital Securities
Debt securities are sublect t o b o t h actual and perceived measures
Where the term "Capital Securities" is used, it refers t o
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 o f the security, particularly in a thinly traded market
capital by regulators or are regarded by rating agencies as having
both debt and equity characteristics and includes, but is not
A Fund may be affected by changes in prevailing interest rates
limited to, financials.
and by credit quality considerations. Changes in market rates of
interest will generally affect a fund's asset values as the prices of
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 do 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 o r 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 projected
of reorganisation will not have a lower value or income potential
business forecasts, or the unavailability o f 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 and 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 o f 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 a t least one recognised rating
reorganisation will be completed, and there may be a
agency, or, in the opinion of the Investment Manager, are o f
requirement t o bear certain expenses t o protect the investing
com parable qua I ity.
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 participation in negotiations w i t h respect t o any
The terms "non-investment grade" or "high yield" define debt
exchange offer or plan of reorganisation w i t h respect t o an issuer
securities which are unrated or rated, at the time o f purchase,
o f Distressed Securities, the investing Fund may be precluded
BB+ (Standard and Poor's or equlvalent rating) or lower by at least
from disposing of such securities. Furthermore, constraints on
one recognised rating agency or, in the opinion of the Investment
investment decisions and actions with respect t o Distressed
Manager, are of comparable quality.
Securities due t o tax considerations may affect the return realised
on 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 o f 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 on the prices of non-investment grade debt securities
fixed income transferable securities of 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 Merrill Lynrh international Investment Funds
Smaller Capitalisation Companies
Competition between 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 a t substantial losses with n o
experience short-term price volatility and wide spreads between bid
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 o f smaller companies 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 the 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 t o more abrupt or erratic price movements
than stocks
of large Companies The securities of small companies
may also be more sensitive t o market changes than the securities
bear interest or pay preferred dividends at below market rates
and, in some instances, may not bear interest or pay preferred
dividends at all.
of large companies These factors may result in above-average
fluctuations ir 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 or technologies
in a stated amount of the asset t o which it is related. In such
Investment is Tade in a limited number of market sectors and
instance, a Fund would endeavour t o sell the asset-based security
therefore these funds may be more volatile than other more
in the secondary market prior t o maturity if the value o f 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 activiry. In particular, certain Funds may have exposure t o
thereby realise the appreciation in the underlying asset
technology stocks. Investments in securities of 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 be relatively
vulnerable t o price fluctuations of financial services companies
more volatile. Technology-related investments may include smaller
and other factors that particularly affect financial services
and less seasoned companies. Such 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 o f stock issued by many financial services
a limited management group. The companies in which the Funds
companies have historically been more closely correlated with
concerned may invest are also strongly affected 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 the 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 of many
the 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
now valued, using certain valuation criteria, at a substantial
(Ginnie Mae, Fannie Mae or Freddie Mac) for a fixed price at a
premium t o the average for equity markets in general. There can
future date A t the time of purchase the exact security is not
be no assurance or guarantee that current valuations of
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 o f the security t o be purchased declines
other major currencies. The use o f 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 of 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
deemed appropriate t o d o so. Proceeds of TBA sales are not
Derivatives - General
received until the contractual settlement date. During the time a
In accordance w i t h 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 TBA 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 t o the size
loss o n the commitment 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 to
Hedged 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 n o t completely eliminate the
Using swap contracts t o 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 credi: 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 of 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
bond they hold (hedging the investment) or buy protection on a
The objective of these strategies is to mitigate major sources o f
bond they d o not physically o w n in the expectation that the
currency risk, while taking account of 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 o f protection, and 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
to reduce the risk of currency movements between the Base
the required premiums and the swap terminates on maturity w i t h
Currency and the currency of the Hedged Share Class by hedging
no further payments. The risk of the buyer is therefore limited t o
the Net Asset Value of the Fund in the currency of the Hedged
the value of the premiums paid.
Share Class. Funds invested in multiple currencies will apply a
hedging strategy which aims t o 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 Nerrill Lynch international Investment Funds
swaps must at all times be able t o meet the redemption requests.
levy a redemption charge of 2 % of the redemption proceeds
Credit default swaps are valued o n a regular basis according t o
t o shareholders w h o m the Directors, in their reasonable
verifiable and transparent valuation methods reviewed by the
opinion, suspect of excessive trading This charge will be
made for the benefit of the Funds, and affected shareholders
Company's auditor.
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 t h e Special Risk Considerations section
adversely affect the interests of all shareholders Excessive trading
a b o v e b e f o r e investing i n any o f the f o l l o w i n g Funds.
includes indiv duals or groups of individuals whose securities
There
transactions seem t o follow a timing pattern or are characterised
will b e achieved.
can b e no assurance t h a t t h e objectives of each Fund
by excessively frequent or large trades.
Each Fund is managed separately and in accordance with 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 of
structured product providers, which may require the periodic re-
the Funds, the following definitions, investment rules and
allocation of 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 of the Directors, t o o frequent or appears t o follow a
timing pattern.
Where an individual investment policy of a Fund refers to
70% of its total net assets being invested in a specific type or
range of investments, the remaining 30% of the total net
As well as the general power of Directors t o refuse subscriptions
assets may be invested in financial instruments of companies
or conversions at their discretion, powers exist in other sections of
or issuers of any site in any sector o f the economy globally,
this Prospectus t o ensure that shareholder interests are protected
unless the individual investment policy o f such Fund contains
against excessive trading. These include:
further restrictions. Where an individual investment policy of
a Bond Fund refers t o 70% o f its total net assets being
fair value oricing -Appendix B paragraph 15;
price swinging
- Appendix B paragraph
16(c);
invested in a specific type of investments, such Bond Fund
may, within the remaining 30% of its total net assets, invest
in-specie redemptions - Appendix 6 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 up to 10% of
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 o f ascertaining whether an individual or a
t o be invested in a specific type or range of investments, such
group of iidividuals 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 t o 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;
Funds may hold cash and near-cash instruments o n an
adjust the Net Asset Value per Share t o reflect more
incidental basis.
accurately the fair value of the Funds' investments at the
point of valuation. This will only take place if the Directors
Funds may
believe that movements in the market price of underlying
foreign exchange) as provided for in Appendix A.
use derivative instruments (including those o n
securities mean that in their opinion, the interests o f all
shareholders will be met by a fair price valuation; and
Unless specifically stated t o the contrary, the currency
securities of issuers domiciled in, or exercising the predominant
exposure of the Funds will normally be left unhedged.
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
Where the term "Greater China" is used, it refers t o the
transferable securities that are the subject of bankruptcy
transferable securities. The Fund may also invest in fixed income
People's Republic of China, Hong Kong and Taiwan.
proceedings or otherwise in payment default or in significant risk
of being in payment default at the time of purchase. The currency
Funds investing globally or in Europe (including the BRlC
exposure of the Fund is flexibly managed.
Fund) may contain investments in Russia, sublect always t o
the 10% limit referred t o in the "Emerging Markets" section
The BRlCFund seeks t o rnaximise 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 of these investment oblectives and policies all
The Conservative Allocation 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 of 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 of the Fund is
flexibly managed.
Funds which include "Absolute Returns" in their title seek to
achieve positive returns, however, this should not be
interpreted t o mean or imply that an absolute return
The Conservative Allocation Fund
is
guaranteed, as there can be circumstances where negative
returns are generated
(US Dollar) follows
an asset
allocation policy, w i t h the principal objective of managing
volatility o f capital value, subject t o which the Fund seeks t o
maximise total return expressed in US dollars. The Fund invests
globally in fixed income transferable securities (which may include
The Asian Dragon Fund seeks t o maximise total return
some high yield fixed income transferable securities) and may also
expressed in US dollars. The Fund invests at least 70% o f its total
invest to a lesser extent in equities. Total return may be derived
net assets in the equity securities of 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 Bond Fund seeks t o maximise total return
The Continental European Growth Fund seeks t o maximise
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
70% 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
o n companies that, in the opinion of 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 on capital.
The Emerging Markets Fund seeks t o maximise total return
expressed in US dollars. The Fund invests globally at least 70% of
The Corporate Bond Fund (Euro) seeks to 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 be made in the
securities At least 70% of 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 Euro Bond Fund seeks t o maxirnise 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 oblective 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 Euro Corporate Bond Fund seeks t o maximise total return
exposure is normally hedged back into 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 Euro Bond Fund seeks t o maximise total return expressed in
The Emerging Europe Fund seeks 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 of
their economic activity in and around, the Mediterranean region.
The Euro-Markets Fund seeks t o maximise total return
The Emerging Markets Bond Fund seeks 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% of
Member States participating in EMU It may also invest in those
expressed in euro The Fund invests at least 70% o f its total net
its total net assets in fixed income transferable securities, and at
EU Member States that, in the opinion o f the Investment Adviser,
least 70% of its total net assets in the fixed income transferable
are likely t o loin EMU in the foreseeable future and in companies
securities o f governments, agencies and companies domiciled in,
based elsewhere that exercise the predominant part o f their
or exercising the predominant part of their economic activity in,
economic activity in EMU - participating countries.
developing markets. The Fund may invest in both subinvestment
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 Fund seeks t o maximise total return
This will normally be o n a limited basis and will not exceed 20%
of total net assets at the 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 of 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 Global Allocation Fund seeks t o maximise total return
expressed in US dollars. The Fund invests globally in equity, debt
The European Fund seeks t o maximise total return expressed in
and short term securities, of both corporate and governmental
euro The Fund invests at least 70% of its total net assets in the
issuers, w i t h n o prescribed limits. In normal market conditions 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
generally will seek t o invest in securities that are, in the opinion o f
The European Focus Fund seeks t o maximise total return
the Investment Adviser, undervalued. The Fund may also invest in
the equity securities of small and emerging growth companies.
assets in a concentrated portfolio of equity securities of
The Fund may also invest a portion o f 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 European Growth Fund seeks to maximise total return
expressed in euro. The Fund invests at least 70%
of its total net
The Global Bond 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 of their economic activities in,
70% o f 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 top line
fixed income transferable securities denominated in currencies
growth and high or improving returns on capital.
other than the reference currency (euro), although most currency
exposure is normally hedged back into euro.
The European Opportunities Fund seeks t o maximise total
return expressed in euro. The Fund invests at least 70% o f its
The Global Bond Fund
(USDollar) seeks t o
maximise total
total net assets in the equity securities of 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% of 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
denominated in currencies other than the reference currency (US
The European Value Fund seeks t o rnaximise total return
dollars), although most currency exposure is normally hedged
back into US dollars.
The Global Capital Securities Absolute Return 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% o f the Fund's total net assets
The Euro Reserve Fund aims t o balance growth w i t h security o f
average duration of 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% o f its total net assets in investment grade fixed income
transferable securities denominated in currencies other than the
are invested in Capital Securities that are issued globally. The
20 Merrill Lynch international Invertment Funds
in, or
reference currency (euro). Currency exposure is flexibly managed,
net assets in the equity securities of companies domiciled
although at least 90% of total net assets will be exposed t o euro.
exercising the predominant part of their economic activity, in
The Global Dynamic Equity Fund seeks t o maximise total return
companies that, in the opinion of the Investment Adviser, exhibit
expressed in US dollars. The f u n d invests globally, with n o
growth investment characteristics, such as sustainable organic top
prescribed country or regional limits, at least 70% of its total net
line growth and high or improving returns o n capital.
developed markets. The Fund places particular emphasis on
assets in equity securities. The Fund will generally seek t o invest in
securities that are, in the opinion o f the Investment Adviser,
The Global High Yield Bond 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
The Global Equity Core Fund seeks t o maximise total return
securities. The Fund may invest in fixed income transferable
70% of its total net assets in high yield fixed income transferable
securities that are the subject of bankruptq proceedings or
otherwise in payment defaillt or in significant risk of being in
in, or exercising the predominant part of 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 Global Equity Diversified Fund seeks t o maximise total
The Global Opportunities Fund seeks t o maximise total return
return expressed in US dollars. The f u n d 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, 3r exercising the predominant part of 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 wi:l
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 w i t h that of its benchmark index.
The Global Focus Fund seeks t o maximise total return expressed
in US dollars. The Fund invests globally in a concentrated
The Global SmallCap Fund seeks t o maximise total return
portfolio of equity securities with 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 oart of their economic activity in, developed
companies. Smaller capitalisation companies are those whose
markets.
market capitalisation is similar t o the market capitalisation of
companies
in the MSCI World
Small Cap index at the time of the
The Global Fundamental Value Fund seeks t o maximise total
Fund's Investment. Although it is likely that most of the Fund's
return expressed in US dollars. The Fund invests globally at least
investments will be in companies located in the developed
70% of its total net assets in the equity securities of companies
markets of North America, Europe and the Far East, the Fund may
domiciled in, or exercising the predominant part o f 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 Fund seeks t o maxirnise total return
investment value.
expressed in
US dollars. The Fund invests at least 70% of its total
The Global Growth Fund seeks t o maximise total return
expressed in US dollars. The Fund invests at least 70% of its total
Greater China.
The lndia Fund seeks t o maximise total return expressed in US
opinion o f the Investment Adviser, undervalued and therefore
dollars. The Fund invests at least 70% of its total net assets in the
represent intrinsic investment value.
predominant part of their economic activity in, India. (In normal
market conditions the Fund will invest exclusively via the
objective of the Japan Value Fund will be as follows:
Subsidiary).
The Japan Value Fund seeks t o maximise total return expressed
The Japan Fund seeks t o maximise total return expressed in US
in yen. The Fund invests at least 70% of its total net assets in the
dollars The Fund invests at least 70% of i t s total net assets in the
predominant part o f their economic activity in Japan. The Fund
predominant part of their economic activity in, Japan.
places particular emphasis on companies that are, in the opinion
of the Investment Adviser, undervalued and therefore represent
intrinsic investment value.
objective of the Japan Fund will be as follows:
The Latin American fund seeks t o maximise total return
The lapan fund seeks 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.
Latin America. Latin America includes Mexico, Central America,
South America and the Spanish speaking islands of the
The Japan Opportunities Fund seeks t o maximise total return
Caribbean, including Puerto Rico.
net assets in the equity securities of smaller capitalisation
The New Energy Fund seeks to maximise total return expressed
companies domiciled in, or exercising the predominant part o f
in US dollars. The Fund invests globally at least 70% of its total
their economic activity in, Japan. Smaller capitalisation companies
net assets in the equity securities of companies whose
are those whose market capitalisation is similar t o the market
predominant economic activity is in the alternative energy and
capitalisation o f companies in the Citigroup EM1 Japan Index at
energy technology sectors. Emphasis may be given t o renewable
the time of the Fund's investment.
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 Equity Fund seeks t o maximise total return expressed
in US dollars. The Fund invests at least 70% of its total net assets
The Japan Opportunities fund seeks t o maxirnise total return
in the equity securities of companies domiciled in, or exercising
expressed in yen. The Fund invests at least 70% of its total net
the predominant part of their economic activity ir., Pacific Basin
assets in the equity securities of smaller capitalisation companies
and Australasian countries. Currency exposure is flexibly
domiciled in, or exercising the predominant part of their
managed.
economic activity in, Japan. Smaller capitalisation companies are
those whose market capitalisation is similar t o the market
The Short Duration Bond Fund (Euro) seeks t o maxirnise total
capitalisation o f companies in the Citigroup EM1 Japan Index at
return expressed in euro. The Fund invests at least 90% of its
the time of the Fund's investment.
securities. A t least 70% o f the Fund's total net assets are invested
The Japan Value fund seeks to maximise total return expressed
in fixed income transferable securities w i t h a duration of less than
in US dollars The Fund invests at least 70% of its total net assets
five years. The average duration is not normally more than three
in the equity securities of companies domiciled in, or exercising
years. A t least 70% of the Fund's total net assets will be invested
the Predominant part of their economic activity in Japan The
in fixed income transferable securities issued by entities within
Fund places particular emphasis on companies that are, in the
those EU Member States participating in EMU. The Fund may
invest withoLt limitation in fixed income transferable securities
The US Basic Value Fund seeks t o maximise total return
denominated in currencies other than the reference currency
equity securities of companies domiciled in, or
(euro), although most currency exposure is normally hedged back
net assets
into euro.
exercising the predominant part of their economic activity in, the
in the
US. The Fund places particular emphasis on companies that are,
The Sterling Reserve Fund aims t o balance growth with security
in the opinion of the Investment Adviser, undervalued and
o f capital and high liquidity expressed in sterling. The Fund invests
therefore reoresent basic investment value.
at least 90% of its total net assets in investment grade fixed
income transferable securities denominated in sterling and
The US Dollar Core Bond Fund seeks t o maximise total return
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 no time exceed 12 months.
derived from income. The Fund invests at least 90% of its total
net assets in investment grade fixed income transferable
The Strategic Allocation Fund (Euro) follows an asset
securities. A t least 70% of the Fund's total net assets are invested
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
income transferable securities). The Fund may invest without
The US Dollar High Yield Bond Fund seeks t o maximise total
return expressed in US dollars. The Fund invests at least 90% of
reference currency (euro). The currency exposure of the Fund is
its total net assets in fixed income transferable securities. At least
flexibly managed.
70% o f the Fund's total net assets are invested in high yield fixed
income transferable securities denominated in US dollars. The
The Strategic Allocation Fund
(USDollar) follows an asset
allocation policy that seeks t o maximise total return expressed in
Fund may invest in fixed income transferable securities that are
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 Duration Bond Fund seeks t o maximise
Fund
total return expressed in US dollars. The Fund invests at least
15 flexibly
managed
90% o f its total net assets in investment grade fixed income
The Thailand Fund seeks 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% of its total net assets in
are invested in fixed income transferable securities denominated
the equity securities o f companies domiciled in, or exercising the
in US dollars w i t h a duration of less than five years. The average
predominant part o f their economic activity in, Thailand.
duration is not normally more than three years. Currency
The UK Focus Fund seeks t o maximise total return expressed in
US Dollar Reserve Fund aims to balance growth with
sterling. The Fund invests in a concentrated portfolio of equity
The
securities with at least 70% of its total net assets invested in
security of capital and high liquidity expressed in US dollars The
companies domiciled 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 United Kingdom Fund seeks t o maximise total return
average remaining maturity of the Fund's assets will at n o time
expressed in sterling. The Fund invests at least 70% of its total
exceed 12 months
exercising the predominant part o f their economic activity in,
The
the UK.
US Flexible Equity Fund seeks t o
maximise total return
The US SmallCap Value Fund seeks to maximise total return
expressed in US dollars. The fund invests at least 70% of its total
US. The Fund normally invests in securities that, in the opinion of
net assets in the equity securities of smaller capita!isation
the Investment Adviser, exhibit either growth or value investment
characteristics, placing an emphasis as the market outlook
their economic activity in, the
warrants.
companies are those whose market capitalisation
US. Smaller capitalisation
is
similar t o the
market capitalisation of companies in the Russell 2000 or the S&P
The
US Focused Value Fund seeks t o maximise total
return
SmallCap 600 at the time of the Fund's initial investment. The
Fund places particular emphasis o n companies that are, in the
opinion of the Investment Adviser, undervalued.
US. The Fund places particular emphasis on companies that are,
The World Bond Fund seeks t o maximise total return expressed
of the Investment Adviser, undervalued relative to
in US dollars. The Fund invests at least 90% of its total net assets
in the opinion
its assessment of their current or prospective condition or relative
in fixed income transferable securities, and at least 70% of its
t o prevailing market ratios.
securities. Currency exposure is flexibly managed.
The
US Government Mortgage Fund seeks a high
level of
income expressed in US dollars. The Fund invests at least 90% of
The World Energy Fund seeks t o maximise total return
its total net assets in fixed income transferable securities. A t least
expressed in US dollars. The Fund invests globally a t least 70% of
80% of the Fund's total net assets are invested in fixed income
its total net assets in the equity securities of companies whose
transferable securities issued or guaranteed by the United States
predominant economic activity is in the exploration,
Government, its agencies or instrumentalities, including
development, production and distribution of energy. Additionally,
Government National Mortgage Association ("GNMA")
the Fund may invest in companies seeking t o develop and exploit
mortgage-backed certificates and other US Government securities
new energy technologies.
representing ownership interests in mortgage pools, such as
mortgage-backed securities issued by Fannie Mae and Freddie
The World Financials Fund seeks t o maximise total return
Mac. All securities in which the Fund invests are US dollar-
denominated securities.
predominant economic activity is financial services.
The
US Growth Fund seeks t o
maximise total return expressed in
US dollars The Fund invests at least 70% of its total net assets in
The World Gold Fund seeks t o maximise total return expressed in
the equity securities of companies domiciled in, or exercising the
US dollars. The Fund invests globally at least 70% of its total net
predominant part of their economic activity in, the US. The Fund
assets in the equity securities of companies whose predominant
places particular emphasis o n companies that have exhibited
economic activity is gold-mining. It may also invest in the equity
above-average growth rates in earnings.
securities of companies whose predominant economic activity is
other precious metal or mineral and base metal or mineral mining.
The
US Opportunities Fund seeks t o
maximise total return
The Fund does not hold physical gold or metal.
net assets in the equity securities of smaller capitalisation
The World Healthscience Fund seeks t o maximise total return
their economic activity in, the US. Smaller capitalisation
its total net assets in t h e equity securities of companies whose
companies are those whose market capitalisation is similar t o the
predominant economic activity is in healthcare, pharmaceuticals,
market capitalisation o f companies in the Russell 2000 Growth
medical technology and supplies and the development of
index at the time of the Fund's investment.
biotechnology.
The World lncome fund seeks t o maximise total return
New Funds or Share Classes
expressed in US Dollars, a significant portion of which may be
The Directors may create n e w Funds or issue further Classes of
derived from income The Fund invests globally at least 90% of its
Shares. This Prospectus will be supplemented t o refer t o these
total net assets in fixed income transferable securities
new Funds or Classes.
denominated in a variety of currencies. In normal market
conditions, the Fund will invest in securities denorrinated in a
Classes and Form of Shares
variety of currencies In normal market conditions, the Fund will
Shares in the Funds are divided into Class A, Class B, Class C,
invest in securities denominated in at least three different
Class D, Class E, Class J, Class Q and Class X Shares, representing
currencies with no set portion of the Fund's investments required
eight different charging structures Shares are further divided into
t o be denom nated in any single currency The Fund's average
Distributing arid Non-Distributing Share classes. Non-Distributing
maturity will be less than 1 5 years The Fund may also invest in
Shares do not pay dividends, whereas Distributing Shares pay
fixed-income securities that are below investment grade
dividends See 'Dividends' o n page 30 for further information
Currency exposure
is
flexibly managed.
Class A Shares
With effect from 29 May 2006, the investment objective and
policy of the World Income Fund will be as follows:
Class A Shares are available to all investors as Distributing and
Non-Distributing Shares and are issued in registered form
("Registered Shares") and global certificate form ("Global
The World lncome fund seeks t o maximise total return
Certificates"). Unless otherwise requested, all Class A Shares will
expressed in US dollars, a significant portion of which may be
be issued as Registered Shares.
derived from income. The Fund invests globally at least 90% of 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 no 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 to clients of Merrill Lynch (which provides nominee
The World Mining Fund seeks to maximise total return
facilities t o investors) and t o other investors at the discretion of
expressed in US dollars. The Fund invests globally at least 70% o f
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 of 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 Fund seeks t o maximise total return
Class E Shares
expressed in US dollars The Fund invests globally at least 70% of
Class E Shares are available in certain countries, subject t o 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
available as Non-Distributing and Distributing Shares, Registered
Shares and Global Certificates for all Funds. Unless otherwise
the Company's Share register. Shareholders will receive
requested, all Class E Shares will be issued as Registered Shares.
confirmation notes of their transactions. Registered Share
certificates are not issued.
Class J Shares
Class J Shares are initially only offered t o fund of funds in Japan
Global Certificates are available under a registered common
and will not be publicly offered in Japan. However, they may be
global certificate arrangement operated with Clearstream
offered t o other funds of funds in the future, at the discretion of
International and Euroclear. Global Certificates are registered in
the Investment Manager. Class J Shares are available as
the Company's share register in the name of Clearstream
Distributing and Non-Distributing Shares. No fees are payable in
International and Euroclear's common depository. Physical share
respect of Class J Shares (instead a fee will be paid t o the
certificates are not issued in respect o f Global Certificates. Global
Investment Manager or affiliates under an agreement). Class J
Certificates may be exchanged for Registered Shares under
shareholders bear all expenses along with other shareholders pro
arrangements between Clearstream International, Euroclear and
rata t o the Funds' respective Net Asset Values.
the Central Paying Agent.
Class Q Shares
Bearer Shares (which were available prior t o 1 February 2002)
Class Q Shares are a grandfathered Share Class available t o
may be exchanged for Class A Registered Shares or Global
investors previously holding shares in other funds sponsored by
Certificates without charge and bearer Share certificates and
entities within the ML Group. Within the Company they are n o
coupons (if any) must be surrendered upon a request for
longer available for subscription or conversion into. Class Q
redemption or conversion.
shareholders w h o wish t o convert into another o f the Company's
Funds may d o so free of charge and will receive Class B Shares.
Information on Global Certificates and their dealing procedures is
Further, any CDSC history will be carried over into the new Fund.
available o n request from the Transfer Agent or the Investor
Merrill Lynch at its sole discretion may refuse any request to
Service Centre.
transfer record o f ownership of Class Q Shares held by or through
Merrill Lynch.
Dealing in Fund Shares
Daily Dealing
Class X Shares
Dealings can normally be effected daily. Orders for subscription,
Class X Shares are available as Non-Distributing Shares and
redemption and conversion of Shares should be received by the
Distr buting Shares, and are issued as Registered Shares only at
Transfer Agent or the Investor Service Centre before 12 noon
on any Dealing Day and the prices applied will
the discretion of the investment Adviser and its affiliates. No fees
Luxembourg time
are payable in respect of Class X Shares (instead a fee will be paid
be those calculated in the afternoon o f that day. Any dealing
t o the Investment Adviser or affiliates under an agreement) Class
orders received by the Transfer Agent or the Investor Service
X shareholders bear all expenses along with all other shareholders
Centre after 12 noon Luxembourg time on a Dealing Day will be
pro rata t o the Funds' respective Net Asset Values
dealt w i t h on the next Dealing Day. A t the discretion of the
Company, prices applied t o orders backed by uncleared funds
Class X Shares are only available t o institutional investors within
may be those calculated in the afternoon of the day following
the meaning of Article 129 of the law o f 2 0 December 2002 on
receipt of cleared funds. Further details and exceptions are
undertakings for collective investment, as amended Investors
described under the sections entitled "Application for Shares",
must demonstrate that they qualify as institutional investors by
"Redemption o f Shares" and "Conversion of Shares" below.
providing the Company and its Transfer Agent or the Investor
Once given, applications t o subscribe and instructions t o redeem
Service Centre w i t h sufficient evidence.
or convert are irrevocable except in the case o f suspension or
deferral (see paragraphs 28 t o 31 o f Appendix 6) and cancellation
General
requests received before 12 noon Luxembourg time. Dealing
Investors purchasing any Class o f Shares through a distributor will
orders placed by telephone will be recorded. Redemption and
be subject t o the distributor's normal account opening
conversion orders for bearer Shares (where available) must be in
requirements. Title t o Registered Shares is evidenced by entries in
writing.
Orders placed through distributors rather than directly w i t h the
adjustments t o reflect fiscal charges and dealing costs (see
Transfer Agent or the Investor Service Centre may be subject t o
paragraph 16(c) of Appendix B).
different procedures which may delay receipt by the Transfer
Agent or the Investor Service Centre. Investors should consult
Class B, Class C and Class Q Shares
their distributor before placing orders in any Fund.
Class B, Class C and Class Q Shares may normally be acquired or
redeemed at their respective Net Asset Values No charge is
Where shareiolders subscribe for or redeem Shares having a
added t o or included in the price payable o n acquisition or
specific value, the number o f Shares dealt in as a result of
redemption but, with the exception of Rejerve 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
in a benefit to the Fund or the shareholder.
page 32 and in paragraph 17 of Appendix B Prices may include
or have added t o them, as appropriate. (I) a distribution fee; and
Shareholders should note that the board of Directors may
(id,
determine t o restrict the purchase of Shares when it is in the
and dealing costs (see paragraph 16(c) o f Appendix B).
in limited circumstances, adjustments t o reflect fiscal charges
interests o f the Company and/or its shareholders t o do so,
including when the Company or any Fund reaches a site that
The specific levels o f fees and charges that apply t o each Class of
could impact the ability t o find suitable investments for the
Share are explained in more detail under “Fees, Charges and
Company and Fund.
Expenses” on pages 32 t o 33 and in Appendices
General
Application for Shares
Confirmation notes, cheques and other documents sent by post
Applications
will be at the risk of the investor.
B, C and E.
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 t o the Transfer Agent or
All prices are determined after the deadline for receipt of dealing
the Investor Service Centre o n the application form. For initial
orders 12 noon Luxembourg time on 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
to 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 h s choice of Dealing Currency at the time of 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 do 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 or prices. Historic dealing prices for all Shares 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
The 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;
described in paragraphs 28 and 32 of Appendix 6, respectively.
(11)
a distribution fee; and (111)in limited circumstances,
The investor acknowledges that personal information and
Minimum Subscription
information relating t o its investments supplied t o a member of
The minimum initial subscription in respect of any Class of Shares
the ML Group may be processed by or transferred t o or disclosed
of a Fund is currently US95.000 (except for Class D Shares where
t o any company in the ML Group world-wide in order t o
the minimum is US$lO million) or the approximate equivalent in
administer the services for which the investor has applied or may
the relevant Dealing Currency. The minimum for additions t o
apply in the future
existing holdings of any Class of Shares of a Fund is US$l,OOO or
the approximate equivalent. These minima may be varied for any
This may involve the transfer of data by electronic media
particular case or distributor or generally. Details of the current
including the internet. The investor's information will be held in
minima are available from the Transfer Agent or the Investor
confidence and not shared other than as described without the
Service Centre.
investor's permission or as required by applicable law. The
investor may at any time request information about the
M o n e y Laundering Prevention
companies in the ML Group and the countries in which they
As a result o f anti-money laundering regulation, additional
operate. The investor consents t o its information being processed,
documentation may be required for subscriptions for Shares. The
transferred or disclosed within the ML Group. The investor may at
circumstances under which it is required and the precise
any time request a copy o f the information held about it and
requirements are set o u t in the notes o n the application form.
request any errors t o be corrected. Should the investor wish t o
This information will be used t o verify the identity of investors or,
enjoy protection in respect o f i t s personal data under
in some cases, the status o f financial advisers; it will be used only
Luxembourg law i t should make its application direct t o the
for compliance with these requirements. Please note that the
Transfer Agent.
Transfer Agent or the Investor Service Centre reserve the right in
Settlement
t o provide documentation may result in the withholding of
For all Shares, settlement in cleared funds must be made within
redemption proceeds. If you have any questions regarding the
three Business Days o f the relevant Dealing Day. If timely
identification documentation required, you should contact the
settlement is not made (or a completed application form is not
Investor Service Centre or the Transfer Agent.
all cases t o request further documentation or information. Failure
received for an initial subscription) the relevant allotment of
Shares may be cancelled and an applicant may be required t o
Redemption of Shares
compensate the relevant distributor and/or the Company (see
Applications t o Redeem
paragraph 25 of Appendix B).
Merrill Lynch clients may enter their redemption orders through
their Merrill Lynch Financial Advisers. In all other cases,
Payment instructions are summarised at the back of this
instructions for the redemption of Registered Shares should
Prospectus. Whenever payment is t o be made by cheque, dealing
normally be given by completing the form that accompanies
may be delayed until cleared funds have been received, therefore
confirmation notes and is available from the Transfer Agent or
payment by telegraphic transfer is strongly recommended. Cash,
the Investor Service Centre. They may also be given t o the
endorsed cheques or travellers cheques will not be accepted.
Transfer Agent or the Investor Service Centre in writing, or by fax
or telephone followed in each case by confirmation in writing
Settlement should normally be made in the Dealing Currency for
sent by mail t o the Transfer Agent or the Investor Service Centre.
the relevant Fund or, if there are t w o or more Dealing Currencies
Failure t o provide written confirmations may delay settlement o f
for the relevant Fund (see page 121). in the one specified by the
the transaction (see also paragraph 25 of Appendix
investor. An investor may, by prior arrangement with the Transfer
redemption requests (or written confirmations o f such requests)
E). Written
Agent or the Investor Service Centre, provide the Transfer Agent
must include the full name($ and address of the holders, the
w i t h any other freely convertible currency and the Transfer Agent
name of the Fund, the Class (including whether it is the
will arrange the necessary currency exchange transaction. Any
Distributing or Non-Distributing Share class), the value or number
such currency exchange will be effected at the investor's cost
of Shares t o be redeemed and full settlement instructions and
must be signed by all holders. Redemptions of bearer Shares will
be effected only upon receipt of the relevant certificates.
Redemptions may be suspended or deferred as described in
addition, a conversion between Shares held in different funds will
paragraphs 28 t o 31 o f Appendix B.
give rise to 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 B Shares, Distributing and
applicable rroney laundering prevention information) have been
Non-Distributing, t o fund their participation.
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
If they d o this, their
may be freely purchased by the Transfer Agent w i t h 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 normally made by
telegraphic transfer t o the shareholder's bank account at the
With the exception o f Class Q Shares to Class B Shares (see
shareholder's cost. If bank account details are not available,
"Classes and Form o f 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 accordance
X Shares and any other conversions from Shares of one Class of a
with 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 6
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,
S w i t c h i n g B e t w e e n 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 o f Shares o f the various Funds and thereby alter
the balance of their portfolios t o reflect changing market
Instructions t o Convert
conditions.
Instructions for the conversion
Shareholders may also convert between Distributing and Non-
accompanies confirmation notes and is available from the
Distributing Shares o f the same Class or between hedged and un-
Transfer Agent or the Investor Service Centre. They may also be
of Registered Shares should
normally be given by completing the appropriate form that
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 (D)
the Investor Service Centre. Conversion instructions must include
Shares (as defined in the Dividend Section on page 30) is not
the full name(s) and address of the holder($, the name of the
permitted.
Fund, the Class (including whether it is the Distributing or Non-
In addition, shareholders may convert between any Class of UK
converted and the Fund to 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.
Distributing Share class), the value or number of Shares t o be
currencies. Such conversions may be a taxable event in the hands
of investors and may give rise t o an immediate tax charge. In
Where the Funds t o which a conversion relates have different
Dealing Currencies, currency will be converted at t h e relevant rate
o f exchange on 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 payment frequencies may be
may not be accepted, as described in paragraphs 28 and 32 of
introduced at the Directors’ discretion. Confirmation of 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 o f 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 o f 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 law 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 8 Holding Sizes
Investors may choose to hold either Distributing (M) Shares or
The Company may refuse t o comply with redemption, conversion
Distributing (D) Shares but may not hold both.
or transfer instructions if they are given in respect of part o f a
holding in the relevant Class of Shares which has a value o f less
than
US%l,OOO or the approximate
Dealing Currency or if t o d o so would result in such a holding of
less than USB5,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
Dividend 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, w i t h dividends normally paid as follows:
Monthly on the Bond Distributing Funds where there is
income t o distribute.
30 lvlerrill Lynch international investment Funds
Distributing Shares w i t h annual dividend payment are known as
Distributing (A) Shares.
equivalent in the relevant
The calculat o n 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 t o shareholders based upon t h e number of Shares held a t the month end.
Distributtng (0)
The dividend is calculated daily based upon daily-accrued income less expenses, for t h e number of Shares
outstanding o n that day
A cumulative monthly dividend is then distributed t o shareholders based upon the number of Shares held and the
number of days for which they were held during t h e period. Hoiders of Distributing
Shares shall he entitled to
dividends f r o m t h e date of subscription to t h e date of redemption.
(a)
Distributing (A)
The dtvidend is calculated annually based upon income accrued during t h e dividend period less expenses
The divtdend is distributed to shareholders based upon t h e number of Shares held a t t h e end of the annual period
Declaration, Payment of Reinvestment of D i v i d e n d
The chart below describes the declaration and payment of
dividends and the reinvestment options available to shareholders
Distributing Shares (Df
DistrrbutingShares (M)
&outing
Shares (A)
Distributing Shares
DS(N1
Distributing Shares
D W
Last Business Day of
each calendar month
in the Dealing
Currencyb) of the
relevant Fund
Within 10 Business Days of declarationto
shareholders holding Shares during the
period following the previous declaration
shareholders registered in the share
reglster on the Business Day prior to the
declaration date
each fiscal year in the
Deakng Currency(ies)
of the relevant Fund
Within 10 Business Days of the last
Business Day of each fiscal year
each calendar month
sharehalders registered in the share
register on the Business Day prior to the
declaration date 5
each fiscal year
Dwidends of $US 100 or
shareholder's bank
account by relegraphic
transfer in the
shareholoer's chosen
dealing currency at the
shareholder's cost
(except Merrill Lynch
investors)
All dividendsare paid
directly to the
shareholder's bank
account by telegraphic
transfer (except Mt
investors)
Dividendsof
sameCtas of the same Fund,
i
tfnles the shareholder requests
otherwise. Such,further Shares,
including fractions, will be issued
within 10 Business Days of the
declaration date (except Merrill
Lynch investgrs)
'Dividends will not be
automatically reinvested Where
cnvestorr would like the
distdbUtron amount to be
reinvesed in further Shares of the
*same form of the same Class of
the same Fund, this can be
arranged through the Transfer
Ageh'
Declarations and payment o f dividends are announced in the
Luxemburger Wort in Luxembourg.
No initial charge o r CDSC
is
made o n Class A, Class B or Class Q
Distributing Shares, respectively, issued by way of dividend
reinvestment.
It should be borne in mind that re-invested dividends are likely t o
be treated for tax purposes in most lurisdictions as income
received by the shareholder.
Relevant H o l d i n g Period
CDSC
Please see A p p e n d i x E for a summary of fees a n d charges.
Up t o one year
4.0%
Further information on fees, charges and expenses is given in
Over one year and up t o t w o years
3.0%
paragraphs 19 t o 24 of Appendix C, and the following
Over two years and u p t o three years
2.0%
information must be read in conjunction with those paragraphs.
Over three years and u p t o four years
1 .O%
Over four years
M a n a g e m e n t Fees
Zero
CDSC o f 1% will be deducted from redemption proceeds and
The Investment Manager receives the management fees from the
paid on redemption o f all Class C Shares o f all Funds (except in
Company as shown in Appendix E. The level of management fee
the case of Reserve Funds) unless the Shares are held for more
varies according t o which Fund the investor buys and, with the
than a year.
exception of some Class Q Shares, is the same for all Classes o f
Shares within each Fund These fees accrue daily, are based on
Further information on the CDSC
the Net Asset Value of the relevant Fund and are paid monthly
Appendix E.
IS
contained in paragraph 17 of
The Investment Manager pays certain costs and fees out of the
management fee, including the fees of the Investment Advisers
Conversion Charges
and the Investor Service Centre.
Conversion charges may be applied by selected disrributors, on
D i s t r i b u t i o n Fees
Funds, or on unduly frequent conversions. See paragraphs 18 t o
The Principal Distributor receives annual distribution fees as
20 of Appendix B for further details.
conversion from a Reserve Fund into another of the Company's
shown in Appendix E These fees accrue daily, are based on the
Net Asset Value
of the relevant Fund (reflecting, when applicable,
any adjustment t o the Net Asset Value o f the relevant Fund, as
R e d e m p t i o n Charges
A redemption charge of 2 % of the redemption proceeds can be
described in paragraph 16(c) o f Appendix E) and are paid
charged to a shareholder at the discretion o f the Directors where
monthly
the Directors, in their reasonable opinion, suspect that
shareholder of excessive trading as described under Section
O t h e r Fees
"Excessive Trading Policy" on page I o f 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 tt is likely t o be
charged This charge will be in addition t o any applicable
Initial Charge
conversion charge or deferred sales charge.
On application for Shares an initial charge, payable t o the
Investment Manager, o f u p t o 5% may be added t o the price of
General
Class A Shares (except in the case of the Reserve Funds). An initial
Over time, the different charging structures surnmarised above
charge o f up t o 3 % may be added t o the price of some Class E
may result in Shares o f different Classes o f 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 to 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 o f the CDSC that will apply, which is a
The Company pays certain expenses of the Management
percentage of the lower o f the original purchase price or o f 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
expenses incurred in operating t h e Investor Service Centre The
Company pays all other expenses incurred
in
i t s operation (see
paragraphs 19 t o 24 o f Appendix C) including fees and expenses
of the Directors (see paragraph 7 o f Appendix C) and exchange
costs arising from the calculation
of the dealing prices in the
additional Dealing Currencies (such exchange costs being met by
as known t o the Company at the date of this Prospectus and at
the time of admission o f subsequent investors. However, such
assessment is subject to interpretations on the status of a n
institutional investor by any competent authorities as will exist
from time t o time Any reclassification made by an authority as t o
the stdtus of an investor may submit all Class X Shares to a tax o f
0 05%.
the relevant Fund)
Shareholders are not subject t o any capital gains, income,
A l l o c a t i o n o f Fees a n d Expenses
withholding, gift, estate, inheritance or other tax in Luxembourg
Each Fund is charged w i t h all fees and expenses specifically
(except for shareholders domiciled, resident or having a
attributable to it If a fee or an expense is attributable solely t o a
permanent establishment m Luxembourg a n d except for certain
particular Class of Shares of a Fund, then these will be borne by
former residents of Luxembourg if they o w n more than 10% of
Shares of that Class only. Other expenses are allocated between
the Shares o f the Company).
the Funds on an equitable basis, normally pro rata t o their
respective Not Asset Values Fees and expenses are normally
United Kingdom
charged first against investment income. A shareholder w h o
The Company is not resident in the UK for tax purposes and it is
makes a subscription or a redemption of Shares through the
the intention of the Directors t o continue t o conduct the affairs
Paying Agent or other entities responsible for processing Share
o f the Company so that it does not become resident in the UK.
transactions may be charged w i t h t h e expenses linked t o the
Accordingly it should not be subject t o UK taxation. Shares in the
activity carried out by such entities in Italy
Company other than the UK Distributor Status Shares will not
Taxation
the result that any gain realised by a UK resident shareholder on
The following summary is based o n current law and practice,
disposal of Shares will be an 'offshore income gain' subject t o tax
qualify as shares in a distributing f u n d for UK tax purposes, w i t h
which is subject t o change.
as income. UK residents will be subject t o income tax o n any
Investors should inform themselves of, a n d w h e n
dividends received in respect of such shares in the Company.
a p p r o p r i a t e consult t h e i r professional advisers on, t h e
possible t a x consequences of subscribing for, buying,
Dividends received by taxpayers from the Company will,
holding, redeeming, c o n v e r t i n g or selling shares u n d e r t h e
dependent on personal circumstances, be subject t o income tax.
laws o f t h e i r c o u n t r y of citizenship, residence o r domicile.
The attention of individuals ordinarily resident in the UK is drawn
Investors should n o t e t h a t t h e levels a n d bases of, a n d relief
t o sections 739 and 740 of the 1988 Act which contains
from, t a x a t i o n can change.
provisions for preventing avoidance o f income tax by transactions
Luxembourg
companies) abroad and may render them liable t o taxation in
Under presert Luxembourg law and practice, the Company is not
respect of undistributed income and profits o f the Company.
resulting in the transfer of income t o persons (including
liable t o any Luxembourg income or capital gains tax, nor are
dividends paid by the Company subject t o any Luxembourg
The provisions of 513 TCGA 1992 may apply t o a holding in the
withholding tax. However, the Company is liable to a tax in
Company. Where 50% of the Shares in a Fund are held by five or
Luxembourg 3f 0 05% per annum or, in the case of the Reserve
fewer participators, then any UK person w h o holds more than
Funds and Class X Shares, 0 01 % per annum of its Net Asset Value,
10% of the Shares may be taxed upon his proportion of the
payable quarterly on the basis of the value of the net assets of the
chargeable gain realised by the Fund as calculated for UK tax
respective Funds at the end of the relevant calendar quarter No
purposes.
stamp or other tax is payable in Luxembourg on the issue of Shares
On the death of a UK resident and domiciled individual
The benefit of the 0.01 YO tax rate is available t o Class X Shares
shareholder, the shareholder's estate (excluding the UK Distributor
on the basis of Luxembouig legal, regulatory and tax provisions
Status Shdre Classes) will be liable t o pay income tax on any
Merrill Lynch internationalInvestment Funds 33
accrued gain. Inheritance tax may be due on the value of the
intend t o distribute such gains. The Company will not apply for
holding after deduction of income tax and subject t o any
certification o f any other share classes, or dealing currencies,
available inheritance tax exemptions.
under the 1988 Act.
A UK corporate shareholder may be subject 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
UK D i s t r i b u t o r Status
consequences of subscribing for, buying, holding, redeeming,
The Directors currently intend t o apply in respect of each account
converting or selling Shares under the laws of 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.
consult their professional advisers on, the possible tax
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 t o qualify o n 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 certification is also available. Although exchange of
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 Member States (such as Jersey, Guernsey and the
certification is obtained, shareholders w h o are UK taxpayers (1.e.
Isle of Man) have opted to apply withholding tax during a
resident or ordinarily resident in the UK for tax purposes) will
transitional period. Under these arrangements withholding tax
(unless regarded as trading in securities) have any gain realised
will apply when a Luxembourg paying agent makes distributions
upon disposal or conversion 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 t o UK capital gains tax.
beneficiary of these proceeds is an individual residing in another
Otherwse any such gain 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 n o withholding tax being applied b u t
tax only t o the extent that the gain was, or was deemed t o be,
instead information regarding the distribution or redemption
remitted t o the UK).
being provided t o the fiscal authority in the country in which he is
With a view t o 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 H M Revenue &
Meetings
Customs were t o determine that the gains realised by this type of
The annual general meeting of shareholders o f the Company is
Share upon the disposal of investments were o f a revenue rather
held in Luxembourg at 11 a.m. (Luxembourg time) on 20 June
than a capital nature, o n 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 general
would not qualify for certification since it does not normally
meetings of shareholders will be held at such times and places as
34 Verrill Lynch International Investment Funds
are indicated in the notices of such meetings. Notices are sent t o
registered shareholders and published in accordance with
Luxembourg law by publication in the Luxemburger Wort and
(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 wi:hin
two months of the end of the relevant half-year. Copies of all
reports are available upon request a t the registered office of the
Company and from the Investor Service Centre Registered
shareholders will be sent a personal statement of account twiceyearly
Merfill Lynch International Investment Funds 35
Appendix A
Appendix A - investment and Borrowing Powers and Restrictions
Investment and Borrowing Powers
1.
The Company's Art'cles of Association permit it to iivest in
transferable securities and other liquid f i n a n m assets, to the full
extent permitted by Luxembourg law The Articles have the effect
that, subject to tne law, it is at the Directors' discretion to
determine any restrictions on investment or on borrowing or on the
pledging of the Company's assets
bovowiig, lending, ano uncovered sales of transferable
securities a i d money market instruments are equivalent
to the reqJirements of Dieective 85/61 I/EEC, as
awnded,
the bJSineSS of the other UCls is repoqed in half-yearly
a i d aniual reports to enable an assessmeit to be made
of the assets and Iiabilittes, income and operations over
the reporting period;
Investment and Borrowing Restrictions
2.
The following restrictions of Luxembourg law and (where relevant)
of the Directors currently apply to the Company
2.1.
no more than 10% of the UCITS' or t+e other UCls'
assets (or of the assets of any sub-fund thereof, provided
that the principle of segregation of liabilities of the
different compartments is ensured in relation to tiird
part es), whose acquisition is contemplated, can,
according to h e i r constitutional documents, be invested
in aggregate II units of other UCITS or other UCIs,
The investments of each Fund shall consist of:
Transferable securities a i d money market instruments
admitted to official listings on stock exchanges in Member
States of the European Uison (the "EU"),
Transferable securities and money market instruments dealt in
on other regulated markets in Member States of the EU, that
are operatiig regularly, are recognised and are open to the
public,
Transferabe securities and money market instruments
admitted to official listings on stock exchanges in any other
country in Europe, Asia, Oceania, the Ame74can continents
and Africa.
Transferab'e securities and money market instruwnts dea't in
on other regulated markets that are operating regularly, are
recognised and open to the public of any other country in
Europe, Asia, Oceania, the American continents and Africa,
(9) depos8tswith c r d t institutions which are repayable 01
demand or have the right to be withdrawn, and matu'iig in
no more than 12 months, provided that the credit institution
has its registered office in an EU Member State or, if the
registered office of the credit institution is situated in a no?Member State, provided that it is subject to prudential rules
considered by the CSSF as equivalent to those laid down in
Community law,
(+)
Recently issued transferable securities and money market
instruments provided that the terms of the issue include an
undertaking that app'ication w II be made for admission to
the offic,al listing on o l e of t9e stock exchanges as specified
in a) and c) or regulated markets that are operating regularly,
are recognised and open to the publzcas specified in b) and d)
and that such admission is secured within a year of issue,
financial derivative instruments, including equivalent cashsettled instruments, dea!t in on a regulated market; and/or
financial derivative instruments dealt in over-the-counter ('OTC
derivatives'), provided that:
the underlying consists of instruments described in subparagraphs (a) to (9) above, financial indices, interest
rates, foreign exchange rates or currencies, in which the
Company may invest according to its investment
ob,ectives;
the counterparties to OTC derivative transactions are
institutions subject to prudential supervision. and
be'onging to the categories approved by the CSSF, and
Units of UCITS and/or other undertakings for collectm
investment ("UCls") within the meaning of Article 1(2), first
and second indents of Directive 85/61 l/EEC, as amended,
whether they are situated in a Member State or not, provided
that:
such other UCls are authorised under laws which
prov de that they are subject to supervision considered
by t+e Commission de Su-veillance du Secteur Financier
("CSSF") to be equivaleit to that laid down in
Community law, and that cooperation between
authorities is sufficiently ensured,
the level of protection for unitholders in the other UCIs
is equivalent to that provided for unitho!ders in a UCITS,
and in particular that the rules on asset segregation,
36 Werrill Lynch International Investment Funds
the OTC derivatives are subject to reliab'e and verifiable
valuation on a daily basis and can be sold, liquidated or
closed by an offsetting transaction a t any time at their
fa.r value at the Company's initiat,ve;
(I)
money market instruments other than those dealt in on a
regulated market, which fall under Article 1 of the 2002 Law,
if the issue or issuer of s x h instruments is itself regulated for
the pdrpose of protecting nvestors and savings, and provided
that they are:
iswed or guaranteed by a central, regioial or local
authority or central bank of an EU Member State, the
Europeai Central Bank, the EU or the European
Appendix A
Investmeit Bank, a non-Member State or, in the case of
a Federa' State, by one of the members making up the
federation, or by a pub1 c international body to which
one or more Member States belong, or
issJed by an undertaking any securities of which are
dealt in on regulated markets referred to in
25
A Fund may not invest in any one issuer in excess of the limits set
out below
(a) Not more than 10% of a Fund's net assets may be invested in
transferable securities or money market instruments issued by
the same entity
(b)
Not more than 20% of a Fund's net assets may be invested in
deposits made with the same entity
(c)
By way of exception, the 10% Iim t stated in the first
paragraph of this section may be increased to'
a maximum of 35% if the transferable securities or
subparagraphs (a), (b) or (c) above, or
9
issued or guaranteed by an establishment subject to
prudential supervision, in accordance with criteria
defined by Community :aw, or by an establishment
which is subject to and complies w,th prudential rules
considered by the CSSF to be at least as stringent as
money market instruments are issued or guaranteed by
an EU Member State, by i t s local authorities, by a nonMember State or by public international bodies to whlch
one or more Member States belong,
those laid down by Community law, or
*
issued by other bodses belonging to the categories
approved by the CSSF provided t i a t investments in such
instruments are subject to investor protection equivalent
to that laid d o w i in the first, the second or the third
indent and provided that the issuer is a company whose
a maximum of 25% in the case of certain bonas when
these are issued by a credit institution which has its
registered office in an EU Member State and is subject
by law to special public supervision designed to protect
bond holoers In particular, sums deriv ng fro71 the issue
of these bonds must be invested in conformity with t+e
law in assets which, during the whole period of validity
of the bonds, are capable of covering claims attaching to
the bonds and which, in the event of fa lure of the
issuer, woJld be used on a priority basis for the
reimbursement of the principal and payment of the
accrued interest When a Fund invests more than 5 % of
its net assets in the bonds referred to in this paragraph
and issued by one issuer, the total value of these
investments may not exceed 80% of the value of the net
assets of such Fund
capital and reserves amount to at least EUR 10 millioi
and which presents and pubi shes its annual accomts in
accordance wit+ Directive 78/660/EEC (1 ), is an entity
which, within a group of companies which includes one
or several listed compaiies, is ded catea to t i e financ ng
of the group or is an entity which is dedicated to the
financing of securitisation vehicles which benefit from a
banting Inquid ty line
2.2
Furthermore, each Fund may invest no more than 10% of its net
assets in securities and money market instruments other than those
referred to in sub-paragraph 2.1 (a) to (I).
2.3
Each Fund may acquire the uiits of UCITS aid/or other UCls
referred to in paragraph 2.1. (f), provided that the aggregate
investment In UCITS or other UCl's does not exceed 10% of the net
assets of each Fund, unless otherwise provided for in the relevait
Fund's investment policy.
When each Fund has acqu:red shares of UCITS and/or other UCIs,
the assets of the respective UCITS or other UCls do not have to be
combined for the purposes of the limits laid down in paragraph 2.5.
(d) The total value of the transferable securities or money market
instruments held by a Fund in the issuing bodies in each of
which it invests more than 5% of its net assets must not then
exceed 40% of the va:ue of its net assets. This limitation does
not apply to deposits and OTC derivative transactions made
with financial institutions subject to prudential supervision.
The traisferable securities and money market instruments
referred to in the two indents of paragraph 2.5. (c) above
shall not be taken into account for the purpose of applying
the limit of 40% referred to in this paragraph.
When a Fund invests in the units of other UCITS and/or other UCls
2.4
that are managed, directly or by delegation, by the same
investment manager or by any othev company with which the
investment manager is linked by common management or coitrol,
or by a substantial direct or indirect holding, that no subscription or
redemption fees may be charged to the Company 01 its investment
in the units of such other UCITS and/or UCIs.
-
deposits made with a single entity, and/or
A Fund may hold ancillary liquid assets
-
exposures aris,ng from OTC derivative transaaons
Notwithstanding tne individual limits laid down in subparagraphs 2 5 (a) to (d) above, a Fuid may not combine
investments in transferable securities or money market
instrments issJed by a single entity, and/or
undertaken with a single entity,
Merrill Lvnch InternationalInvestment Funds 37
Appendix A
in excess of 20% of
its
net assets.
When a transferable secilrity or money market instrument
embeds a der vative. the latter must be taken into account
when complyiig with tne requirements of the above
mentioned restr ctions
26
The Company may not invest in shares with vat ng rights enabling
it to exercise s gnificant influence over the management of the
issuing body
2.7
The Company may not:
The limits provided for ;n sub-paragraphs 2.5. (a) to (d) above
may not be combmed, and thus investments in trarlsferable
securities or money market instruments issued by the same
entity or in deposits or derivative instruments made with this
entity carried out in accordance with paragraphs 2.5. (a) to (d)
shall under no circumstances exceed in total 35% of the net
assets of the Fund.
(a)
Acquire more than 10% of tne shares with non-voting rights
of one and the same issuer.
(b)
Acquire more than 10% of the debt securitiesof one and the
same issuer.
(c)
Acquire more than 25% of the units of one and the same
urldertating for collective investment
(d) Acquire more than 10% of the money market instruments of
any single issuer.
Companies wh:ci are included in the same group for the
purposes of consolidated accounts, as defined i i accordance
wit1 Drective 83/349/EEC or in accordance with recognised
international accounting rules, are regarded as a single entity
for the purpose of calculating the investment limits
The limits stipulated in sub-paragraphs 2 7 (b) (c) and (d)
above may be disregarded a t tlle time of acquisition if, at that
time, the gross amount of debt securities or of the money
market instruments, or the net amount of securities in issue
cannot be calculated
mentioned in sub-paragraphs 2.5. (a) to (d) above.
The Fund may not invest cumulatively more that 20% of its
net assets in transferable securities or money market
instruments of the same group sdbjed to restrictions 2.5. (a)
and the three indents under 2.5. (d) above.
2.8.
W thout preludice to the limits laid down in paragraph 2 7
below, the limit of 10% laid down in 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 whei the aim
of the investwnt policy of a Fund is to replicate the
composition of a certain equity or debt securities index which
is recognmd by the CSSF, on the following basis
the compos tion of the index is sufficiently diversified.
(b) Transferable securities and money market instruments issued
or guaraiteed by a non-EU Member State,
the index represents a n adequate benchmark for the
market to which it refers,
it is publ:shed in an appropriate manner.
This limit is 35% bvhere that proves to be justified by
exceptional market conditions in particular in regulated
markets where ce%n transferable securities or money
market instruments are highly dominant. The investment up
to this limit is only permitted for a single issuer.
By way of derogation, each Fund is authorised t o invest
up t o 100% o f i t s net assets in different transferable
securities and money market instruments issued or
guaranteed by an EU Member State, i t s local authorities,
by another member state of the OECD o r public
international bodies of which one or more EU Member
States are members, provided that (i) such securities are
part of at least six different issues and (ii) securities from
any one issue do not account for more than 30% o f t h e
net assets of such Fund.
38 Merrill Lynch InternationalInvestmen! Funds
The limits stipulated in paragraphs 2.6. and 2.7. above do not
apply to'
(a) Transferable securities and money market instruments issued
or guaraiteed by an EL! Member State or its local authorites;
(c)
Traisferable securities and money market instruments issued
by public international institutbns to which one or more EU
Member States are members,
(d)
Transferable securities held by a Fund in the capital of a
company incorporated in a non-Member State investing its
assets mainly in the secur:tiesof issuing bodies having their
registered offices in that State, where under the legislation of
that State such a holding represents the only way in which
such Fund can invest in the securities of issuing bodies of that
State. This derogatm, however, shall apply only if in its
investment policy the company from the non-Member State
complies with the Iim!ts laid down in Articles 43, 46 and 48
(1) and (2) of the 2002 Law. Where the limits set in Articles 43
and 46 of the 2002 Law are exceeded, Article 49 shall apply
mutatis mutandis;
(e) Transferable securit es held by the Compaiy in the capital of
subsidsaty companies carrying on only the business of
management, advice or marketing in t+e country where the
subsidiary is located, in regard to the repurchase of units at
unitholders' request excluswly on its or their behalf
2.9
The Company may always, in the interest of the shareholders,
exercise the subscript,on rights attached to securities, which forms
part of its assets.
Appendix A
Wben the max mum percentages stated in paragraphs 2 2 through
methods which are chosen in order to estimate the risks assoc ated
2.7. above are exceeded for reasons beyond the control of the
Compaiy, or as a result of the exercise of subscriptioi rights, the
Company must adopt, as a priority ob]ect,ve, sales transactions to
remedy the sitdation, taking due account of the iiterests of its
shareholders
with traisactions in derivative instruments
2.10. A Fund may borrow to the extent of 10% of :ts total net assets
(valued at market value) provided these borrowings are made o i a
temporary basis. However, the Company may acquire for the
account of a Fund foreign currency by way of back-to-back loan.
2 11
Tne Company may not grant credit facilities nof act as guarantor
on behalf of third parties. provded that for the pdrpose of this
restricton (I) the acquisition of transfefable securities. money
market instrdments or other financial investments referred to in
sub-paragraphs 2 1 (f), (h) and (I) above, in fu'ly or partly paid
form and (11)the permitted lending of portfolio securities shall be
deemed not to constitute the making of a loan.
3 2.
In addition. the Company is authorised to employ techniques and
instruments relating to traisferable securities and to money market
instruments under the condit ons and within the limits laid down
by t+e CSSF provided that such techniques and instruments are
used for the purpose of efficient portfolio management or for
hedgmg purposes
3.3
When ticse operations concern the use of derivative instruments,
these conditions and limits shall conform to the prov sions laid
down in the 2002 Law
Under no circumstances sha I these operations cause the Company
to diverge fpom its iwestment policies and investment restrsctions
34
2.12. T+e Ccmpany undertakes not to carry out uncovered sales
transactions of transferable securities. money market instruments
or othfr financial instruments referred to in sub-paragraphs 2.1. (f),
(h) and (I) above; provided that this restriction shall not prevent the
Company from making deposits or carrying out accounts in
connedion with financial derivatives instruments, permitted with,n
the Iim ts referred to above.
The Company will ensure that the global exposure of the
underlysng assets shall not exceed the total net value of a Fund.
The uiderly ng assets of index based derivative instruments are not
combined to the investment limits laid down under sub-paragraphs
2 5 (a) to (d) above
When a transferable security or money market instrument
embeds a derivative, the latter must be taken into account
when complying with the requirements of the abovementioned restrictions
The exposure is calculated taking into account the current
value of the ilnderlying assets, the counterparty risk, filture
market movements and the time available to liquidate the
positions.
2 13 The Company's assets may not include precious metals or
certif cates representiog them, com.nodities, commodities
contracts, or certificates representing commoditles
2 14 The Company may not purchase or sell real estate or any option,
rig+t or interest therein, provided tbat the Company may invest in
35
securities secured by real estate or interests therein or issued by
compan es which livest in real estate or interests there n
(a) the transactions are eitered into within a standardised
lending system organised by a recognised securities clearing
institution or by a highly rated specialist financial institution,
2 15 The Conpany will in addition comply with sucb further restrictions
as may be required by the regulatory authorities in any country in
which the Shares are marketed
The Company shall take t h e risks that it deems reasonable t o
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.
Financial Techniques and Instruments.
3.1.
The Company must employ a risk-management process which
enables it to monitor and Teasure at any time the risk of the
positions and their contribution to the overall risk profile of the
portfolio, it must emp'oy a process for accurate a i d independent
assessment of the value of OTC derivative instruments It mdst
communicate to the CSSF regularly and in accordance with the
Securit'es leiding
The Company may enter into securities lending transactions
provided that,
(b)
co'lateral (consisting of cash or government bonds) for the
lending is maintained which has a value at least equal to the
value of the securities lent; and
(c)
lendiig transactions are not carrieo out in respect of securities
representing more than 50% of the aggregate market value
of the securities in the relevant portfolio. and the term of any
lending transaction does not exceed 30 days (unless the
lending transact ons are terminable at any time)
Any net income (net of any remuneration to which the Company's
stocklend,ng agent is entitled) deriving from securities lending to
wh ch the Company is entitled will be re nvested in the Company.
3.6
Repurchase agreements
detaileo rules defined by the latter, the types of derivative
instruments, tne under!ying risks. the quantitative limits a i d the
Appendix A
T i e Company may as bJyer or seller eiter into repurchase
agreemeqts whicn cois st in the pdrchase and sale of secur,ties
whereby the terms of agreement entmt8e
the selw to repurchase
from t i e purchaser the securities at an agreed price and t i w , so
long as
(a) during the !ifetime of a repurchase agreement the Company
may not sell the securities which are the subject of the
agreemeit before the repurchase of the securites by the
couiterparty has been carried out or before the repurchase
period has expired. and
(b) commitments arising from repurchase agree-nents do not
preveit the Company from meetsng redemption obligations.
All sdch permitted transactions must be effected with highly rated
spec a:ised financial institutons;
3.7
Risk associated with OTC derivatives
The counterparty risk on any transaction involving an OTC
dersvative instruments may l o t exceed 10% of the assets of a Fuld
when the counterparty is a creeoit institution dom:ciled in the EU or
in a country where the CSSF coisiders that supervisory regulations
are equivaient to tnose prevailing on the EU This limit is set at 5%
in any other case
The Company's delegates will continuously assess the credit or
counterparty risk as well as the potential risk, which is for trading
achvities, the risx resulting from adverse movements in the leve' of
volatility of market prices arld will assess the hedging effectiveness
on an ongoing bass. They will define specif,c internal limits
applicable to these kinds of operat ons ana monitor the
counterparties accepted for these transactions.
Appendix B
Appendix B -Summary of Certain Provisions of the Articles and of Company Practice
Articles of Association
1
Terms used in this sumnary that are defined in t i e Articles have
the same meaning beiow
(a) Corporate Existence
The Company is a company existing in the form of a sociktk
anonyme qualifying as a societe d'mestissement A cap8ta
variab'e (SICAV) under t+e name of Merrill Lynch International
Investment Funds witn the status of a Part I Undertaking for
Collective Investment in Transferable Securities (UCITS)
(b)
(c)
Sole Object
The so:e object of the CoTpany ,s to place the fuids avai ab'e
to it in one or more portfol os of transferable securitses or
other assets referred to in A-ticle 41(1) of the 2002 Law,
referred to as "Funds", with t i e purpose of spreading
investment risks and affording to its shareholders the results
of the management of the Company's Funds
Capital
The cap% is represented by fu!ly paid Shares of no par value
and will at any time be equal to the aggregate va!ue of the
net assets of the Funds of the Company. Any variation of the
Company's capital has immediate effect.
(d)
Fractions
Fradions of Shares may be issued only as Registered Shares.
(e) Voting
In additsonto the right to one vote for each whole Share of
wiich he LSthe holder at general meetings. a holder of Shares
of any particJlar Class will be entitled at any separate meeting
of the holders of Shares of tnat Class to one vote for each
wiole Share of that Class of which he is the holder
(0
Joint Holders
The Company will register Registered Shares jointly iq the
nmes of not more than four holders should they so require.
In such case the rights attaching to such a Snare must be
exercised jo:ntly by a'l those parties in whose names it is
registered except that verba! mstruct.onswill be accepted by
the Company from any one joiit holder in cases where verbal
instructions are permitted pursuant to provisions of this
Prospectus. Written instructions will be accepted by the
Company from any one joint holder where all the holders
have previously given written authority to toe Transfer Agent
or the Investor Sevice Centre to accept those instructions.
Instructions accepted on e:ther of such bases w1I: be bind:ng
o r all the joint holders concerned.
Directors
The Articles provide for the Company to be managed by a
board of Directors composed of at least three persons
Directors are elected by the shareholders. The Directors are
vested w th all powers to perfor-n all acts of administration
and disposition in the Company's interest In particular the
Directors have power to appoint any person to act as a
functionary to the Fund.
No contract or other transaction between the Company and
any other company or firm shall be affected or invalidated by
the fact that any one or more of the Directors or offmrs of
the Company is interested in, is a director, assocrate, officer
07
of employee of, that other company or firm.
Indemnity
The Company may indemnify any Director or officer against
expenses reasonably incurred by him in connection w t h any
proceedings to which he may be made a party by reason of
such position in the Company or in any other company of
which the Compaqy is a shareholder or creditor and from
which he is not entitled to be indemnified. except where due
to gross negligence or wilfur misconduct on his part.
Winding up and Liquidation
The Company may be wound up at any time by a resolution
adopted by a general meeting of shareholders in accordance
w i t i the provisions of the Articles The Directors must submit
the qJestion of the winding up of the Company to a general
meeting of shareholders if the corporate capital falls below
two-thirds of the minimum capital prescribed by law (the
miiimum capital is curreit!y the equivalent of €1.250.000)
On a winding up, assets available for distributton amongst the
shareholders will be applied in the following priority
0 first, in the payment of any balance then remasringin
the relevant Fund to the holders of Shares of each Class
i,nked to tne Fund, such payment being made in
accordaice with any applicab e rights attaching to those
Shares, ana otherwise in proportion to the total number
of Shares of all the relevant Classes held, and
(11) secondly, in the payment to the holders of Shares of any
balance then remaining a i d not comprised in any of the
Funds, such balance being apportioned as between the
Funds pro rata to the Net Asset Value of each Fund
immediately prior to any distribution to s+areholders on
a w ndiig up, and payment being made of the amounts
so apportioned to the holders of Shares of each Class
(9)
Allotment of Shares
The Directors are authorised without limitation to a!lot ano
issue Shares at any time at the current pr,ce per Share without
reservng preferential subscription rights to exsting
shareholders
linked to that Fund in such proportions as the liquidators
in their absolute discretion think equitable, subject to
the AQ,clesand Luxembourg law
Liquidation proceeds not claimed by shareholders at close of
liquidat on of a Fuid will be deposited at the Caisse de
Appendix 6
any US res.dent or otier person spec,fied in Regulation 5 under tne
US Secdr ties Act of 1933 as amended from time to time and as
may be further supp'emented by resolution of t+e D rectors.
Coisignation !n Luxembourg and shall be forfeited after thirty
years
(k)
Unclaimed Dividends
If a dividend i a s been declared but not paid, and no coupon
has been tendered for such dividend w.thin a period of five
years, the Compaiy is entitled under Luxembourg law to
declare t i e divideid forfeited for the benefit of the Fund
concerned. The Directors have, however, resolved as a matter
of policy not to exercise tnis right for at least twelve years
after the relevant dividend is oeclared. This policy will not be
alte:ed without the sanct:on of t i e shareholders in general
meeting.
If a shareholder currently resident outside the US becomes resident
in the US (and consequendy comes within the defiiition of a US
Person), that shareholder wiil be required to redeem its Shares.
Funds and Classes of Shares
The Company operates separate investmeit "Funos" and w,thin
each Fund separate Classes of Siares are !inked to that Fund
5.
6
Shares may be issued with or have attached thereto sdch preferred,
deferred or other special rights, or such restrictions whetner in
regard to dividend, return of cap tal, conversion, transfer, the prce
payable on allotmeit or otherwse as the Directors may from t i T e
to time determine and such rights or restrictions need not be
attached to all Sllares of the same Class
Restrictions on Holding of Shares
Shares will be d,vided into Classes each linked to a Fund More
2
than one Class of Shares may be linked to a Fund Currently, eight
Classes of Shares (Class A. B, C, 0, E, J, Q and X %ares) are linked
to each Fund except for the Distributing Funds for which there aw
sixteen Classes of Shares (Class A D stribut ng, Class A NonD stributing, Class B Distributiig, Class B Non-DistribJting, Class C
D str,buting, Class C Non-D,str bdting, Class D Distributing. Class D
Non-Distributing, C'ass E Non-Distribdting, Class E Distribut,ng,
Class J Distributing, Class J Non-Distributing, Class Q 0 stributing,
Class Q Non-Distr,buting and Class X Non-Distributing, Class X
7.
The Directors are permitted to reate more than one Class of Share
linked to a single Fund. Tnis allows, for example, the creation of
accumulation and distribution Shares, Wares with differeit dealing
currencies or Classes of Shares with d fferent featilres as regards
panicpation n capital and/or income linked to the same Fund; and
also permits different charging stvctures. The Articies provide t i a t
certain va7:ations of the rights attached to a Class of Shares may
only be made with the sanction of a Class meetins of holders of
Shares of that Class.
8.
The Directors may require redemption of all the Shares linked to a
particular Fuid if the Net Asset Value of the relevant Fund falls
below US$l5 million (orthe equivalent in any relevant Dealing
Currency). The Articles also perm,t tne Directors to not.fy
shareholders of the c'osure of any particular Fund wiere they deem
it in the interests of t i e shareholders or appropriate because of
changes in the economic or political situation affecting the Fund
bat in such circumstances the Directors intend as a matter of policy
to offer holders of any Class of Shares a free transfer into the same
Class of Shares of other Funds. As an alternative. subject to at least
30 days' prior notice to holders of Shares of all Classes of tne
relevant Funo, the Directors may arrange for a Fund to be merged
with another Fund of the Company or with a n o t k r Luxembourg
UCITS (see also paragraph 25 below). Any such merger wi!I be
blnding on the ho!ders of the Shares of the Classes of that Fund.
Distributing Shares) Trley have no preferential or pre-emption
rights and are freely transferable, save as referred to below
3
The Directors may impose or relax restr.ctions (including restrict,orls
on transfer aid/or the requirement that Shares be issued only irl
registered form) on any Shares or Class of Shares (but not
necessari'y on all Shares w i t m the same Class) as they may think
necessary to e n s m that Shares are neither acquired nor held by or
on behalf of any person in circumstances givlng rise to a breach of
the laws or reqJiremeits of any country or governmental or
reghtory authority on the part of that pepson or the Company, or
which might have adverse taxat on or o t w r pecuiiary
coisequences for the Cornpaiy, iiclud n5 a requirement to register
under arly securities or investment or similar laws or requirements
of any country or authority The Directors may in this connectiorl
require a shareho der to provide such information as they may
consicer necessary to establish whether he is the beneficia' owner
of the Shares h a t he holds
If the Company becomes aware h a t 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 regdlatory autnority, or otherme
in the circumstances referred to in th s paragraph, the Directors
may require the redemption of such Shares, decline to issue any
Share and register any transfer of any Share or decline to accept
the vote of a i y person who is precluded from hold ng Snares at
a i y meeting of the shareholders of the Company
4
The Directors have resolved that no US Persons will be permitted to
own Shares. The Directors have resolved that "US Person" means
A Fund may be terminated or merged in circumstances ot+er than
those mentioned above with the consent of a malority of the
Shares preseit or represented at a meeting of all shareholders of
the Classes of Shares of that Fund (at which no quorum
recuirement will app'y) Where a Fund is terminated or merged the
redemption price payable on termination or merger will be
calculated on a basis reflectiig the realisation and liquidation costs
on terminating or merging tqe Fund
Appendix B
The D,rectors have power to suspend deal ngs in the %ares linked
to any Fund where it is to be terminated or merged in accordance
with tl-e above provisions Such suspension may take effect at any
time after the notsce has been g ven by the Directors as mentioned
above or, where tne termination or merger requires t i e approva: of
a meet ng of holders, after t+e passing of t i e relevant resolotioi.
Where dealings in the Shares of the Fund are not suspended, the
13
the time of the va'uation, last known prices as of this t m e or such
other time may be used If net transactions in Shares of the Fund
on any Dealing Day exceed the threshold referred to in paragraph
16(c) below, then additional procedures apply The va!ue of any
securities or assets traded on any other regulated market is
determined in tne same way Where such securities or other assets
are adoted or dealt in on or by more than one stock exchange or
regulated market the Directors may in their discretion select one of
such stock exchanges or regulated markets for such purposes
prices of Shares may be adjusted to reflect the anticipated
realisation a i d liouldation costs meitmoned above
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 the Shares of each Class of Share by the
Company from time to time, but in no instance less than twice
monthly, as the board of Directors may direct.
10
14
The Directors' policy is normally to dea' with requests received
Net Asset Value and Price Determination
All prices for transact ons in Shares on a Deaiiig Day are based on
the Net Asset Value per Share of the Class of S17ares concerned, as
shown by a valdation made at a time or times determineo by the
Directo?s The Directors current'y operate "forward pricing" for ail
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 Deal,ng Day are
normally pub1 shed on the next Business Day Neitier the Compaiy
nor the Custodian c a i accept any respons bility for any error in
publica:ion, or for non-publication of prices or for any inaccuracy
of pvces so published or qJoted Notwithstanding any price
quoted by the Company, by the Custodian or by any distributor, a I
Vansachons are effected strirtly on t i e 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 the basis of them will be sJbject to
correction aid, where appropriate, the investor may be required to
make good any underpayment or reimburse a i y overpayment as
appropriate Periodic valuations of holdings in any Fund 07 Class of
Shares may be sdpplied by arrangement with the Transfer Ageit or
the Investor Service Ceitre
12
The Net Asset Value of each Fund, calculated in its Base Currency,
is determined by aggregating tne value of securities and other
assets of the Company allocated to the relevant Fund and
deducting the liabilities of the Company allocated to that Fund
The Net Asset Value per Share of the Classes of Shares of a
particular Fond wi!I reflect any adjustment to the Net Asset Val& of
tne relevant Fund described in paragraph 16(c) below and will
differ as a result of the allocation of different liabilities to those
Classes (see "Fees, Charges and Expenses" 01 pages 25 to 26) and
as a result of dividends paid
If a security is not traded on or admitted to any official stock
excharlge or any regulated market, or in the case of securities so
traoed or admitted the last known price 1s not considered to reflect
their true va ue, the Directors will value the securities concerned
w th prudence and in good faith on the basis of their expected
disposal or acquisition price Cash, bills payable on demand and
othef debts and prepaid expenses are valued at their nominal
amount, udess it appears unlikely that such nominal amount IS
before 12 noon Luxembourg time on a Dealing Day on that day,
other requests are normally dealt with on tne next Dealing Day
11
The value of all securities and other assets forming any particular
Fdnd's portfolio is determined by last known prices upon close of
the exchange on which those secuntes or assets are traded or
admitted for trading. For securitmes traded on markets clos ng after
obtainable
15
If in any case a particular value is not ascertainable by the methods
outlined above, or if the Directors consider that some other
method of vajoat o i more accurately reflects the fa4r va'Je of the
relevait security or other asset for the purpose concerned, tne
metiod of valuation of the security or asset will be such as the
Directors 'n their absolute discretion decide
16.
(a)
Under current procedures adopted by the Directors the price
for all 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 rekvant Dealing Currency
(b)
For those funds with more than one Dealing Currency (as set
out on page 2), the add.tional Dealing Currency prices are
calculated by converbng the price at the relevant spot
exchange rate at the time of valuation
(c)
If on a i y 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 marcet
deal,ng for that Fund), t i e Net Asset Value of the relevant
Fund w I( be adjusted by an amount (not exceeding 1 25%, or
3 % in the case of the High Yield Funds, of that Net Asset
Va8ue)which reflects both the estimated fiscal charges and
deallng costs that may be incurred by the Fund and the
estimated b d/offer spread of the assets in which the Fuid
iivests The adjustment will be an addition when the net
movement results in an increase of all Shares of the Fund and
a dedJction when it results in a decrease As certain stock
markets and jurisdict,ons may have different charging
Appendix 6
structures on the buy and sell sides, the resulting adlustment
may be different for net inflows than for net outflows. Where
a Fmd invests substaitialiy in government bonds or money
market securities, the D!rectorsmay decide that it is not
appropriate to make sdch an adjustment.
Conversion
The Articles allow the Directors on issuiig new Classes of Shares to
18
impose such rights of conversion as they determine, as described in
paragraph 6 above The basis of all conversions is dated to the
respective Net Asset Values per Share of the relevant Class of the
two Funds concerned
Redemption and Deferred Sales Charges
17
(a) The Directors are entit ed to levy a discretionary redemption
charge on shareholders of a I Classes of Shares where they
believe that excessive trading 1s beiig practised.
(b)
19
Class into which a snareholder wishes to convert h s existing Shares
will be calculated by dividing (a) the value of the number of Shares
to be converted, ca'cu'ated by reference to the Net Asset Value per
Share by (b) the Net Asset Value per Share of the new Class This
calculat on will be adlusted where appropriate by the inclusion of a
convers on charge (see paragraph 20 below) or a delayed initial
charge on Class A, Ciass D or Class E Shares (see paragraph 20
below) No conversion charge will be made whei a delayed initial
charge payable If appl cable, the relevant exchange rate
betweei the relevant Dealing Currewes of the Shares of the two
Funds will be applied to the calculation
On redemption of Class 6. C and 4 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 (ii) the price paid
by the sllareholder for the orig nal purchase of the redeemed
shares or for the shares from which they were converted or
exchanged, in e!ther case calculated in the relevant Dealing
Currency of the redeemed shares.
(c) No CDSC w I: be levied on the redemption of (a) Class B. C
ana Q Shares derived from reinvestment of dividends, or (b)
Class 8,C a i d Q Shares in the Reserve Funds (provided they
were not converted Vom Shares of a non-Reserve Fund or
exchanged from shares of a ML Fund)
The Net Asset Valueb) per Share used in this calculation may reflect
any adjustment($)to the Net Asset Value(sj of the relevant Fund(s)
described in paragraph 16(c) above.
20.
(d)
The CDSC is levied by reference to the "Relevant Holding
The Directors have determined t i a t the number of Shares of the
Except as set out under the sect:on "Switching Between Funds and
Share Classes" above, no conversions are permitted between
Period", which is an aggregate of the periods dur ng which (a)
the redeemed shares, and (b) the shares from which they were
different Classes of Shares of the same Fund or of different Funds.
derived (.f any) as a result of conversion or exchange, were
held in:
(i) any Fund except a Reserve Fund;
(i) any ML Fund (but not a ML Money Market Fund).
Se!ected d.stributors 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 distribdor. While other
convers.ons 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 adcitional
conversion ciarge 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 relevait
d stributor or the Investment Manager (as applicable)
When the Relevant Holding Period exceeds four years no
CDSC is payable in respect of the redeemed shares.
In cases where redeemeo shares are only part of a larger
holding of Class B, C and Q Shares, any Shares acquired by
dividend reinvestment w,II 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 f rst are
redeewd first (thus resulting in the lowest CDSC rate
Dossible)
Where the redeemed shares have a different dealing currency
to the Shares (or sim:lar shares of a ML Fund or ML Money
Market Fund, as described on page 6) originally pilrchased,
for purposes of determ,ning the CDSC the price paid for the
latter w ! ' be converted at the spot exchange rate on the
Dealing Day for redemption.
The CDSC may be waived or reduced by the relevant distributor
at its discret on or for shareholders who, after purchasing Class
B, C and Q Shares, become US Persons and are required to
redeem their Shares as a result (see paragraph 4 above)
When Class A, Class D or Class E Shares of a Rese've Funu 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 ( w k e applicable) may be
payable to the Investment Manager W k e a Reserve Fund holding
includes both direct Shares and Shares acquired as a result of a
conversion from Snares in any Fund other than a Reserve Fuid
("ordinary Shares") or up to 2 % of the price of the new Class D
Shares, a partial conve'sion of the holding will be treated as a
conversion of the direct Shares flrst and then of the ordinary
Shares
Appendix 6
The Directors reserve t+e right to waive or vary these requirements
and also to amend their policy if they consider it appropriate to do
so, either generally or in particular circumstaices.
Settlement on Redemptions
21
Paymeit of an amount to a single shareholder in excess of
US$SOO,OOO may be deferred for up to seven Bmness Days
beyond t i e normal settlement date The redemption price rnay be
payable in specie as explained in paragraph 23 below Failure to
Default in Settlement
Where an appl cant for Shares fails to pay settlement monies on
subscription or to provide a completed application form for an
initial application by tne due date, the Directors may, in accordance
wit1 the Company's Articles, cancel the allotment or, if applicabie,
reaeem the Shares Redemption or conversion instruct ons may be
25
refused or treated as though they have been withdrawn if payment
for the Shares has not beei made or a completed initial application
forT has not been received by the Company In addition, no
deahgs will be effected following a converyon instruction and no
proceeds will be paid 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 t h e Company or,
a$ described below, the Investment Manager against any
losses, costs or expenses incurred directly or indirectly as a
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.
meet money laundering prevention requirements may result 17the
withho ding of redemption proceeds The Company resews the
right to extend t+e persod of payment of redemption proceeds to
such period, not exceeding eight Business Days, as shall be
necessary to repatriate proceeds of the sale of investments in the
eveit of impediments due to exchange cont'ol requirements or
similar constraiits irl the markets in which a substait al pan of t i e
assets of the Company are invested or in exceptional circumstances
where the liquidityof the Company is not sufficient to meet the
redemption requests
In comput,ng any losses covered under this paragraph 25, account
shall be taken, where appropriate, of any movement in the price of
In Specie Applications and Redemptions
Shares of the Company may be allotted as consideration for the
22.
vesting in the Company of securities acceptable to it and having a
value (after deductsng aiy relevaqt charges a i d expenses) equal to
the price payable for the Shares Such securities will be
independent'y valued in accordance with Luxembourg law by a
special -eport of an independent auditor, such report being
deposited with t+e Luxembodrg District Court
23.
the Shares concerned between the transaction date a i d
cancellation of tne transaction or redemption of the Shares, and of
the costs incurred by the Company or, if applicable, the Investment
Manage- in taking proceedings against the applicant
The Investment Manager has agreed to exercise its discretion
(specifed 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 Investment Manager may assume ownership of
the Shares and it mall also have the right to give instructions to the
Company to make any consequent alterations in its register of
shareholders, delay the completion of the relevant transaction,
redeeT the Shares in question, claim indemnification from the
applicant and/or take proceedings to enforce any applicable
indemnity, al' to the same extent that the Company itself
rnay do so
The ob1 gation to pay redemption proceeds may also be sat,sfied by
payment in specie by allocat8ngto the holder (subject to their prior
consent) investments from the po.tfolio of the relevant Fund equal
in valJe (calculated in the manner referred to in paragrapk 13 and
14 abow) to the price of the relevant Shares to be redeemed (net of
any applicable CDSC in the case of Class B, Class C and Class Q
Shares) The nature a i d type of asset to be transferred in such case
w:ll be determined on an equitable basis and without preydicing
the interests of the other holders of Shares of the same Class, and
the valuat,ons used will be confsrmed by a special report of an
independent auditor, deposited with the Luxembourg District Court
Dealings in Shares by the Investment Manager
24.
The Investment Manager, acting in its capacity as Principal
D:stributor, may as principal acquire and hold Shares and may at its
sole discreton satisfy, in whole or in part, an applicat on or request
for the issue, redemption or convers:onof such Shares by selling
Shares to and/or buying them from the applicant, as appropriate,
provided that the applicant consents to such transaction.
Shareholders will be deemed to have consented to deal with the
Investment Manager unless they have expressly informed the
Transfer Agent or the Investor Service Centre to the contrary. Any
such traisaction will be effected on the same terms as to price and
settlement as would have applied in the case of a corresponding
The Company has instructed the Custodian that any interest
benefit tnat may arise as a result of tw early settlement of Share
sdbscriptions and late clearance of redemption proceeds may be
set off against any interest obligation that the Investment Manager
may incur as a result of its arrangements to protect the Company
fro71 losses from the late settlement of Share subscriptions
Compulsory Redemption
If at any t me the Net Asset Value of the Company is less than
US$25 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 Va!ue of the
Fdnd to wh ch that Class is linked falls below US$15 million (or
equlva'ent). or in the circumstances described in paragraph 8
26.
above
issue, redemption or conversion of Shares (as relevant) by the
Company. The Investment Manager is entitled to retain a i y benefit
arising from these transactions.
Appendix B
the necessary realisation of assets out of the Fund conceried or
untii the exceptional circumstances cease to apply. Tn,s may resu't
in some shareholders having redemptm or conversioi ordefs
deferred on a particular Dealing Day, whilst others do not.
Redemptions and conversions so deferred will be deait w t i iq
p',ority to later requests.
Limits on Redemption and Conversion
The Company will not be bomd to redeem or convert on any o l e
27
Dealing Day more than 5% of the value of Shares of a I Classes of
a Fuid then in iuue or deemed to be in issue, as described in
paragraph 30 below
Suspension and Deferrals
28.
Va uations (and conseqdently issues, redemptions and conve%ons)
of any Class of Shares of a Fund may be suspended in ce%n
circumstances including
the closure of or suspension or restriction of trading on any
stock exchange or market on whch are qdoted a substantial
proportion of tne investments held in that Fund,
31.
Shareholders may not redeem a holding of the Company's Shares
unless and unti! cleared funds have been received by the Company
in respect of that holdiig.
the ex stence of any state of affairs which constitotes an
emergency as a result of which disposals or valuation of assets
owned by the Company attributable to such Class of Shares
would be impractmcable;
During a period of suspension or deferral a shareholder may
withdraw h:s request, in respect of aiy transaction which is
deferred or suspended. by notice in writing to the Company. Suci7
notice will only be effect,ve if received before the transaction is
effected.
Non-Acceptance of Orders
The Dvectors also have power to decline to accept any order for
rede.npt,on or conversion into a particular Fund on any one
Dea i i g Day where the aggregate value of orders for all Classes of
Shares of that Fund exceeds a part cular value (currently fixed by
the Directors at 5 % by approximate value of the Fund concerned)
and the Directors consider that to g ve effect to such orders on the
relevant Dealing Day would adversely affect the interests of exist ng
shareholders In addition, the Company may defer redemptions or
32
any breakdown in the means of communication normally
employed in determining the price or value of any of the
investments of s x h Class of Shares or t i e current price or
valiles on any stock exchange or other market;
any period when the Company is unable to repatriate funds
for the purpose of making payments on the redempt on of
such Snares or during which any transfer of funds involved in
trie real sation or acqdisition of investments or payments due
on redemption of shares cannot in the opinion of the
9
directors be effected at normal rates of exchange,
conversions in exceptional circumstances that may, in the op nion
of the Directors, auversely affect the interests of holoers 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
any period w h e i the net asset vaiue per share of any
subsidiary of the Company may not be accurately determined;
converssons may be declined on a particular Dealing Day, and this
may resdlt in some shareholders having redemption or convers on
orders declined whilst others do not In such circumstaices the
Directors will inform each applicant as soon as practicable and if
the applicant wishes alternative instructions can be given
where not:ce 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 oily, 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 tne
Company Notice will also be given to any shareholder lodging a
request for redemption or conversion of Shares
30
The Covpany wi I also not be bound to redeem or convert any
Shares of a Fmd on any one Dealing Day if there are redemption or
outgo,ng convers on orders that day for all Classes of Shares of
that Fund with an aggregate value exceeding a particular level
(currently fixed at 5%) of the approximate value of that Fund In
addition. the Company may defer redemptions and conversions in
exceptioial circumstances that may, in the opinion of t k Directors,
adversely affect the interests of holders of any Class or Classes of
Shares of that Fond In either case, tne Directors may declare at
the'r discret on that some all redemptions and conversions may
be deferred until the Compmy has executed, as soon as possible,
07
Transfers
The transfer of Registeved Shaves may normal'y be effected by
33.
delivery to the Transfer Agent of an instrument of transfer 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 mln,mum t?e Directors may require
the holding to be redeemed. The current minimum is USB5.000 or
equivalent
Probate
34
Upon the death of a shareholder, the Directors reserve the right to
reouire t i e provision of approplate legal documentation to
evidence the rights of the shareholder's legal successor.
Dividends
35. The Articles impose no restrict:on on dividends other than the
requirement to mainta:n the statutory minimum level of capital
(currently tne equivalent of ?1,250,000). The Directors have the
Appendix B
power to pay interim dividends in respect of any Fund. The current
diviaend policy of the Directors is explained on page 30.
C h a n g e s of Policy or Practice
36
Except as otherwise prov ded In the Artic’es, and subject to any
lega! or regulatoy reqwrements. the Directors reserve the right to
amend any practice or policy stated in this Prospectus
Intermediary Arrangements
37
Where Shares are issued by the Compaiy to financial institutions
(or their no-ninees) wiich act as intermediaries, the benefits ana
obligations described in the Prospectus may be applled by the
Company to each of the intermediary’s clients as if such client were
a direct shareholder
Appendix C
Appendix C - Additional Information
History of the Company
1.
Tie Company is registered under Number B 631 7 a t the Register of
Commerce at the Distr ct Court of Luxembourg where its Articles
of Association are available for irlspectioi a i d where copies thereof
may be obtained upon request (aid see a's0 paragraph 33 below).
2.
3.
The Company's constitution is aefined in the Art cles. The o q n a l
Articles were published iq the R e c w des SocietCs et Associations
du M h o r a l (the "Mkmorial") of the Grand-Duchy of Ldxembourg
o i 21st July 1962. The Articles have been amended and restated
several t!mes. most receitly on 16 September 2005, with
publ:cation i i the M h o r i a l on 16 September 2005.
The Company was incorporated as Selected Risk Investments S.A.
on 14th June 1962.
4.
Administrative Organisation
The Investment Manager and the Investment Advisers
The Management Company and the Company have entered into
an Investwnt Management Agreement with the Investment
Manager wllereby the lnvestmerlt Manager is responsible for
managing the assets of the Company. The Investment Manager is
entitled to delegate its investmeit managemeit fmctions to any of
its subsidiaries or associates and, with the approval of the
Management Company, any other person. The Investment
Manage: has delegated some fundions 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 L!mited has in
t u r i sub-delegated some functions to Merrill Lynch Investment
Managers Co., Ltd.
9.
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.
With effect from 31st December 1985 the name of the Compaiy
was changed to Mercury Selectea TrJst. the Company adopted the
legal statds of a societe d' nvest sselnent a capital variable (SICAV)
and was reconstituted to enable it to issue different classes of
Shares It qdalifies as a i Undertaking for Collective Iivestment in
lraisferable Securities
The Investment Manager, incorporated with lam ted liability in
Jersey on 10th August 1972 for an unlimited perlod, has an issued
and fully paid-up share capital of f530.000 and carries on the
business of, inter a1.a. 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.M. Roe, Mr. R.E.R. Rumboll, Mr.
N.J. Coats, Mr. T. Beck, Mr G. Bamping and Ms. T.A. Fritot.
With effect fro-r 1 J J ! ~2002 the name of the Company changed
to Merrill Lynch International Investment Funds
With effect from 16 September 2005 the Company was submitted
to Part I of the law of 20 December 2002 that implements
Directives 2001/107/EC ana 2001/108/EC.
The registered office of the Investment Manager is at Forum House,
Grenville Street, S t Helier, Jersey JE4 8RL, Channe Islands
With effect from 16 September 2005 the Company has appointed
M e d Lynch Investmeit Managers (Luxembourg) 5 A as its
management co.npany
5
As from the date of this Prospectus, Shares are offered solely on
t i e basis of this Prospectus, which supersedes all previous versions
6
The Not ce Legale required by Luxembourg law in connection with
this offer has been filed with the Reg,strar of the District Court of
Luxembourg.
DSP Merrili Lyric+ Fund Managers ("DSPML-FM") provides nonbsiding investmeit advice to the Subsidiay DSPML-FM is du!y
registered with the SEBI as an asset management company to DSP
Merri'l Lynch Mutual Fund and as a portfolio manager. DSPML-FM
is a wel; reputed mutual fund asset manager in India and as of 31
Dece-nber 2005 had assets under management of approximately
USBl 9 b llion
The Subsidiary is registered as a sub-account of Merrill Lynch
Investment Managers Limited which is an entity registered as a
Foreign Institutional Iivestor with the Secdrities and Exchange
Board of India under the SEBI (Foreign Institutional Investors)
Regulations. 1995 and invests in India under the provisiois of the
Directors' Remuneration and Other Benefits
Tiere are no existing or proposed service contracts between any of
7
toe Directors and the Company and the Artic'es contain no express
provision governing the remuqeration (including pensson or other
said regulations.
benefits) of the Directors. Tne Directors receive fees and out-ofpoccet expenses from the Company Directors who are not
representatives of t i e MLlM Group currently receive a fee of
USB30.000 per a n n m
Auditor
8
The Company's auditor is PrlcewaterhouseCoopers of 400 route
d'Esch, L-1471 Luxembourg
48 iderrill Lynch InternationalInvestment Funds
10
The Investor Service Centre
The Investment Manager has entered into an Investor Services
Agreement with M e r v Lynch Investment Managers Limited for the
provlsioi of an Investor Service Centre to provide dealing facilities
and related investor support fmbions Other Merrill Lynch local
offices also serve as local Investor Service Centres for customer
enquiries only, the dealing facil ties being always provided by
Appendix C
11
The Custodian
15.
Tne Company has entered into a Custodian Agreement with the
Custodian whereby the Custod'an has agreed to act as custodian
of the assets of the Company and to assume the functions and
respons bi ities of a custod an under the Luxembodrg law of 20ti
December 2002
The Paying Agents
The Company has appointed the foilowing as Paying Agents:
Austria
Raiffeisei Zeitralbank
bsterreich AG
Am Stadtpark 9
1030 Vienna
The Custodian anc' Fmd Accountant (see paragraph 12 be!ow) is
The Bank of New York Europe Limited. Luxembourg Branch. Its
office is at Aerogolf Center, 1A Hoehenhof, L-1736 Senningerberg,
Luxembourg. The Bank of New York Edrope Limited was
incorporated with limited iiabil ty in England on 9th August 1996
with an issued and fd!y paid up share capital of f2OO million. Its
registered office is One Canada Square, London E14 5AL and its
ult,mate holding company is The Bank of New York Company, Inc.
which is incorporated in the Unlted States of America. The
Custodial's and the Fund Accountant's principa! bils:ness activty is
the probision of custodial ana investment administration sewices
and treasury dealing.
Belgium
Citibank Bank nv/sa
Boulevard General Jacques 2639
1050 Brusse's
Germany
Commerzbank A t
Kaiserplatz
60261 Frankfurt am Main
Luxembourg
12
13.
The Transfer Agent
J.P. Morgan Bank Luxembourg S.A.
5, Rue Plaetis, L-2338 Luxembourg
Switzerland
HSBC Prvate Bank (Suisse) S.A
Paradeplatz 5
CH-8022 Zljrich
Un&d Kingdom
UBS Warburg (a financial services group of UB5 A.G.)
1 Fmsbury Avenue
,
The Management Company and the Investment Manager have
entered i i t o a Traisfer Agency Agreement with the Transfer Agent
whereby t i e Transfer Agent has agreed to prov7de all necessary
transfer agency functions including applicat 01 and transact.on
processing. maintaiiing the share register, and sewices related to
these functions
14
(Central Paying Agent)
The Fund Accountant
Tne Managemeqt Company and the Investment Manager have
entered into an agreement with the Fund Accountant whereby the
Fund Accountant has agreed to provide fund accounting. Net Asset
Value determination a i d sewices related to these fuidions Subject
to Luxembourg law and regulation the Fund ACCOJntant is entitled
to delegate specific functions to any other person, firm or company
(with the approval of the Management Company and the
regulatory authordy)
Relationship of Custodian and Fund Accountant with MLlM
Group
The Custodian's and Fund Accountant's associates provide custody
and fund accounting services to Merrill Lyncl7 Investment Maiagers
Limited and some of its associates in respect of their investment
management busiiess generally Under agreements betweei
companies i i The Bank of New Yorlc Company, Iic ("BNY") group
and some companies in the MLlM Group re ating to the provision
of these sewices, payments due from the relevant companies in the
MLlM Group to BNY companies w II be abated by the fees paid by
the Company to the Custodian and Fund Accountant in respect of
custodian and fund accounting services
London ECZM 2PP
Attent,oi Corporate Adion - Paying Agency
16
The Subsidiary
In additson to the India Fund, certain other Fuids may livest in
securities tirough the wholly-owned subsidiary of the Company,
Merrill Lynch India Equities Fund (Maurit,us) Limited The Subsidiary
is incorporated as a private company, limited by shares The
Subsid ary is organised as an open-ended multi-class fuid and
holds a Category 1 Global Business Liceice for the purpose of the
Financial Sewices Development Act 2001 and 15 regulated by the
Financial Services Commission. Mauritius ("FSC") It must be
mderstood that in giving this authorisation, the FSC does not
vouch for the financial soundness or tne correctness of any of the
statements made or opin.ons expressed wit4 regard to the
Subsid dry
The Subsidiary was incorporated on 1 September 2004, and has an
unlimited life It is a wholly-owned subsidiary of the Company The
Subsid,ay is registered with the Registrar of Companies, Mauritius,
and bears file number 52463/Cl/GBL. The Constitution is available
for inspection at the registered office of the Subsidiary
....
Appendix C
convenes meetings of the directors, keeps the statutory books and
records of the Subsdary, maintains the register of shareholders
and makes all returns required to be made by the Substdiary uider
the laws of Madr ti& Tne MaJritiai Administrator is respois bie
for a'l tax filings in Mauritius re ating to the Subsidiary.
Tne ailthorised capital of the Subsidiary is US$ 5,000,000,100 and
is divided into 100 management shares of nomiial valde US $1 .OO
each, which are issued to the Compaiy; 4,000,000,000 class A
redeemable participat:ng siares of noTiia! value US $1.00 each of
which may be issiled as A shares ( " A Shares"). which may only be
issued to the Company; a i d 1,000,000,000 redeemable
participatlng shares of nomina! value US 51 .OO each of which may
be issued to the Company in such classes of participat ng shares as
the directors may determine with such preferred or qualified or
other special rignts or restrictions whether in regard to voting,
dividend, return of cap'tal or otherwise. Additiona' classes of shares
may be issued issued to the Company at a later stage in
accordance with the Sdbsid:ary's Const tution. The Sdbsidiary issues
reg,steredshares oily.
The Subsidiay has entered into a Custodian Agreement with the
Custodian ana the Compaiy whereby t+e Custodial has agreed to
act as custocian of the assets of the Subsidiary and the Company
The Sdbsidiafy has appointed the Mauritian Auditor as auditor of
the Subsid ary in Mauritius to perform the aud tor's duties required
by M a u r i t u law. The Company and t i e Subsidiary shall issue
consolidated accounts All assets a i d liabilities, income and
expenses of the Sdbsidiary are consolidated in the statement of net
assets and operat ons of the Company A!I investments held by the
Subsdary are disclosed in the accounts of the Company Ail cash,
securities and other assets of the Subsidiary are held by the
Custodian o i behalf of the Company
The board of directors of the Sdbsidiary may for efficient
managewnt authorise a committee of directors to issue
participatsng shares of the Silbsldiary on such terms as approved by
t i e board
The business and affairs of the Subs,d'ary are managed by the
directors The directors of the Subsidiary are Mr. Geoff Radcliffe.
Mr Frank Le Feuvre and Mr. Jean-C aude Wolter as non -resident
directors and Mr. Couldip Basanta tala and Mr Dev Joory as
resident dmrectors At any time. the directors of the Subsidiary will
comprise a malority of directors who are also Directors of the
Company The directors are responsible, intev alia, for estab ishing
t i e investment objectives and policy of the Subsidiary and for
monitoring the Subsidiary's investments and performance.
Indian Investment Adviser t o the Subsidiary
DSP Merrill Lynch Fund Managers Ltd
Tulsiani Cnambers, West Wing, 11th floor, Nariman Point.
MJmba. - 400 021. India
Mauritian Auditor to the Subsidiary
Pricewaterhousecoopers
6th Floor, terne House, Cnaussee, Port Louis, MaJritius
Mauritian Administrator t o the Subsidiary
IFS lnteriational Financial Services Limited
The Subsdary acts solely 'n favour of the Company and its sole
ob,ect is to carry out actwties In favour of the Company and tqe
funds
IFS Cou?, Twenty Eight, Cybercity, Ebene, Maufhus
17.
The Subsidiary complies with the investment restrictions of the
Company
The Subsdary has appointed Merriil Lynch Investment Managers
Limited as its investment manager and DSP Merrill Lynch Fund
Managers Ltd to act as its lndlan Investment Adviser.
Internationa! Financial Senms Limited ("IFSL"), Mauritius has been
appointed by the Subsidiav as its adminlstrator and secretary (the
"Maurit:an Administrator"). IFSL is a lead:ng offshore management
company incorporated in Mauritius and licensed by the Financial
Services Commission (FSC) to provide advisory and management
services for iiternational businesses.
Tie Mauritian Administrator carries on the general administration
of the Subsidiary, keeps or causes to be kept the accomts of the
Subsidiary and such fiiancia: books and records as are required by
law or otherwise for tne proper conduct of its financial affairs. The
Mailritian Administrator calculates the net asset value per share on
each valdation day and the subscription price and redemption price
in accordance with the Const,tution. The Mauritian Administrator
Taxation of the Subsidiary and the India Fund
Mauritius
The Subsidiary shall hold a Category 1 Global Bus.nessLicence for
the purpose of the Financial Services Development Act, 2001 ("FSD
Act") and is liable to tax in Maur:tius at the rate of 1 5 % 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 creait 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 cap ta' ga ns will be payable in Mauritius on disposals by
the Subsidiay of Indian secdrities. T+ere is no witiholding 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 auttlorit es and such certificatioi is determinative of i t s
resident status far treaty purposes Accord.ngly, the Subsidiav
qualifies as a resident of Mauritius for the purposes of the
India/Maurit,us Double Tax Avo dance Treaty (the "Treaty") On th,s
Appendix C
bask, the Subsidiary is entitled to certain reliefs from Indian tax,
Dividends on shares received from an Indian company on
subject to the continuance of the cdrrent terms of the Treaty.
which dividend distribution tax has been paid are
exempt from tax in the hands of the shareholders Thus,
m y dsvidends distnbuted by the Indian portfolio
companies to the Subsidiary or, as the case may be, the
India Funa are not subject to tax in India, provided t i e
company payiig the d,v,dends pays a dividend
distribution tax of 12 5 % (plus surcharge and education
cess as applicable),
Shareholders are not sdbject to any wealth, capital gams, iqcome,
withholding, gift, estate, inheritance or other tax i i Maw tius
(except for shareholders domickd, resident or havirlg a permarent
establishment in Maurit8us).
India
The following are tne tax implications on the income earned by the
Subsidiary or as the case may be, the Ind a Fund from Indian
portfoiio companies
Tie Subsid ary, or as the case may be, the India Fund, has income
in the form of capital gains, income from dsvidends and income
from interest
A.
1
2
Tne 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 followsCapital gams resulting from the sale of India1 secdr ties
(including Foreign Currency Convertible Bonds) or Global
Depositary Receipts ("GDRs") or American Depositary
Rece,pts ("ADRs") issued by Indian companies will not be
subject to tax in India, prov:ded the Subsidiary does not have
a permaqent establishment in India, however, the purchase
and sale of Ind a0 securities in a recognised stock exchange in
India is subject to a SecuritiesTransaction Tax (STT) as
discussed below. This tax has been recently introduced by the
Finance (No 2 ) Act, 2004:
Dividends on shares received from an Indian cornpaiy on
which dividend distr,bution tax has been pald are exempt
from tax in the hands of the shareholders Thus, any dividends
distributed by the Indian portfolio companies are not be
subject to tax in India, prov8dedthe company paying the
dividends pays a dividend distribution tax of 12 5 % (plus
surcharge arld eddcat.on cess '),
3.
Interest income from Indian securities is taxed at the rate of
Interest income from lndiai securities is taxed at the rate
of 20% ( p l ~ surcharge
s
and education cess as
applicable), (if the interest income arises out of the
Subsidiary's or, as the case may be, India Fund's
subscription to Foreign Currency Convertible Bonds, the
iiterest will be taxed at the rate of 10% (plus swcharge
a i d eddcation cess));
Capital gains from the sale of Indian securities held 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 !isted security in a recognised stock exchange in
India, the rate of tax shall be 10% (phs surcharge and
education cess) provided 5Tr as discussed below has
been paid on such transfer:
Capita: gains from the sale of Indian securities held for
more thai 12 montns are taxed as long-term capital
gains at the rate of 10% (plus surcharge and education
cess) However, if the long-term capital gains arise on
t+e sale of a !isted security in a recognised stock
exciange in India, the same will not be subject to tax
provided the Sn as d scussed below has been paid on
such transfer
All Indian taxes mentioned at A & B above are exclusive of the
currently appl cable surcharge of 2 5 % (for companies) on the
Ind an tax and education cess at the rate of 2 % on tax and
SJrcharge In respect of dividend distribution tax mentioned in A 2
and B(i) above, the applicable surcharge is 10% on the Indian tax
20% (plus surcharge and education cess); (if the interest
income arises out of the Subsidiay's subscription to Foreign
Currency Convertible Bonds, the interest wili be taxed at the
rate of 10% (plus surcharge and education cess));
B.
The tax consequences for:
The Subsidiary (in the event Treaty benefits are not
available to tne Subsidiary); or
(11) The India Fund.
(I)
are governed by the provisions of the ITA which are as follows:
' Education cess is an additional surcharge on income-tax and surcharge,
The Subsidiav, of, as the case may be, the India Fund is liable to
pay S T , The rates of STT with effect from 1 June 2005 are as
follows:
0.1 % on purchase of equity shares in a company or units of
equity oriented funds in a recognised stock exchange in India.
0.1 % on sa:e of equity shares in a company or units of equity
oriented funds in a recognised stock exchange in Ina,a
0.02% on sale of equity shares in a compaiy or units of eqility
oriented funds in a recognised stock exchange in India where
the contract for sa:e is settled otherwise then by the actual
del.very or transfer of share or unit.
0.0133% on sale of der;vat;ves in a recognised stock exchange
in India.
introduced by the Finance (No.2) Act, 2004 and continued under the Finance
Act 2005.
Appendix C
0.2% on sale of units of an equity oriented fund to the
Mutual Fund.
19
In the event the gains on sale of shaves is taxed under the head,
both categopiesof fees will vary according to the country of
investment and, in some cases, according to asset class
Investments in bonos a i d developed equity markets will be at the
lower end of these ranges, while some investments in emergiig or
developing markets will be at the upper end Thus the custody cost
to each Fund wiil depend on its asset allocation at any time
"Profits and Gains of Business or Profession" the Subsidiary (11case
thf Subsidiary is held to have a permanent establishment in India
and such gains are attributable to the permanent establishment) or,
as the case may be, t i e lnoia Fund, will be liable to tax at t i e rate
of 40% (plus surcharge and education cess as indicated above)
Credit for STT paid will be available agaiist income tax on income
arising from transactions on which STT has been paid.
The Transfer Agent receives a n n m fees calculated according to (a)
the number of holdings (ranging from US89 to US825 per holding),
(b) transaction processing (rangiqg from US82 to USB13 35 per
Special Risk Considerations for the India Fund
The India Fmd invests throdgh the Subsldiary, which invests 'n
lndiai portfolio companies under the SEE1 (Foreign Inst,tutional
Investors) Regulatiois, 1995 The India Fund may also invest
directly or tirough its Subsidiary in foresgn securities issued by
India? companies
Investors should i o t e that the Subsidiary relies upon the prowsions
of the Treaty to miiimise, so far as possible the taxation of the
Subsidiary No assurance can be given that the terms of the Treaty
will not be sub,ect to review in the f u t m and any change could
have a mater,a adverse effect on the returns of the Subsidsay. The
repeal o' amendment of the Treaty, a change in the Maurit us or
Indian domestic tax laws, or a change of policy of the Maurdm or
Indian tax aatbowes may adversely affect the tax treatment of the
investment of t i e lidia Fund and/or the taxation of the Subs diary
and, as a conseqmw, the value of the India Fund's siares There
c a i be no assurance that tne Treaty will continue and will be in full
force and effect during the life of the Subsidiary
T'le current status of the Treaty is that following the issue of
assessment orders against certain Mauritian resident companies
deriving benefits under the Treaty during 2000, the Indian Central
Board of Direct Taxes ("CBDT") issued Circular 789 (the "Circu'ar")
on 13 April 2000. The Circular clarified that a certificate of tax
residence issued by the Maurit,an tax authorities was sufficient
evidence for accepting the status of the resideice as well as
beneficial ownership for purposes of applying the Treaty. The
Supreme Court has receitly dpheld the validity of the Circular.
Accordingly, the Subsdary should be eligible to claim the benef,t
of the Treaty. It is to be noted that a curative petition has been fi+d
in the Supreme COUZ against the above order. The Supreme Court
has not yet admitted th:s petition. The Directors will keep under
review the progress of this petition and may at any time implement
a policy to pwvide for any potential tax liability in the price of the
Shapes. Any such provision will be affected in the Net Asset Value
transaction, depending on the transaction type), and (c) Fundhhare
class annual maintenance fees (ranging from USB2.000 to
USB20.000 depending on the nJmber and type of FunddShare
Classes).
The Fund Accountant receives aiiual fees calculated according to
the Net Asset Value of each Fund, ranging from 0 01 5% to
0.023%.
20
the Net Asset Va!ue of each Fuid, as shown in Appendix E.
52 Merrill lynch International lnvestrrent Funds
The Investment Manager, in its capacity as Principa! Distributor, is
entitled to receive
the initial charge of up to 5 % of the price of the Class A
Shares issued, where levied,
the initial charge of up to 2% of the price of the Ciass 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 CDSC on redemptions if the Investment Manager is acting
as distributor;
any delayed init,al charge on Class A or Class E %ares,
respectively.
the Investment Manager's charge on unduly frequent
conversions of any Class of Shares (see paragraph 20 of
Appendix 8). and
any dist: bdt o i fees
21
Subject to the approval of the board of Directors, the Management
Fee for any FJnd may be increased up to 2 25% by giving
snareholders a t least three months' prior notice Any increase to
the ManageTent Fees above this level would require approval of
siareholcers at an extraordinary general meeting. At least orle
monto's notice will be given to shareholders of any increase in the
rates of other fees and charges specified in th s Prospectus, unless
prior shareholder consent is required under tne Company's Articles
when at least one month's notice will be given from the date of
such consent.
of the Fund.
The Investment Manager is entltled to management fees based on
18
The Custodiaq receives annual fees, baseu on the value of
securities. which accrue daily, plus transact on fees The annual fees
range from 0 01 1 % to 0 608% per a n n m a i d the transaction
fees range from US813 to USB157 per transaction. The rates for
22.
The Investment Manager is entitled at its sole discretion and
without recourse or cost to the CoTpany to rebate all of or part of
its fees and charges and to pay commsssion to any investors
(including discounts on c+arges to directors and employees of the
Appendix C
Investment Maiager a i d
its
affiliates) or its distribdor or agents i
are fixed pursuant to local law or regulation and, therefore, are not
i
respect of any subscript,ois for, redemption or hold,ngs of, Shares.
23.
The Company bears all expenses incurred in the operation of the
silbject to 0egot:ation.
29
Company (whether incurred directly or by the Management
Company, the Custodian, the Paying Agents, the Fuid Accountant,
the Principal Distributor, the Transfer Agent, t i e Investment
Manager and its affiliates, or the Investor Service Centre),
including, without limitation, taxes, expenses for legal and auditing
services, costs of printing proxies, share certificates, shareholders'
reports and statemeqts. prospectuses and other offering
documeits and other required documentation, the expenses of
issue and redemption of Shares and payment of dividends, foresgn
exchange costs arising in the calculation of trle dealing prices in the
commissions and other terms of business are generally comparable
wit? those available from unassociated brokers and agents in the
mar<& concerned, and (b) this is consistent with the above policy
of obtaining best net results Consistent with the above po'icies, it
s anticipated that a proportion of the Company3 investment
traisactions will be executed through ML Group broker dealers and
that they will be amongst a relatively small group of global firms
whlc+ may each be assigned a larger proportion of transactions
than t+e proportion assigned to any other firm
additional Dealing Currencies. registrat,oo fees dJe to supervisory
aJthorities in various jurisdictions and o t w r related expenses, fees
a i d out-of-pocket expenses of the Dmrectors of the Company,
insurance, interest. Iistiig a i d brokerage costs, and t i e costs of
computation and publication of Net Asset Va8uesand prices The
expenses borne by the Company also include costs incurred by
distributors and agents in complyng with local regulatory
requirements and other costs specifically incurred by them with the
approval of the Directors
30
24.
If a Func is closed at a time when any expenses previodsly al ocated
to that Fund have not been amortised in f d , the Directors shall
determine how the outstanding expenses should be treated, and
may, where appropriate. decide that the outstandiig expenses
should be met by the Fund as a liquidation expense.
2s.
The operating costs of the Subsidmary includ ng the fees for the
Mauritiai Administrator, estimated at approximately US5 36,800
per year, are borne by the Subsidiary There are no management
fees borne by the Subsidiary
26.
The India Fund will be launched upon its merger with tne Merrill
Lynch Specialist Investment Funds - India Fund and the
unamortized expenses of that fund will be carried over to the India
Fund as part of tne merger process.
When arranging traisactions i i secur,ties for the Company,
compaiies in the ML Group may provide securites brokerage,
foreign exchange, banking and other services, or may act as
pr ncipal. o i their usual terms and may benefit therefrom
Commissions wilt be paid to brokers and agents in accordance with
the relevant market pradice a i d the benefit of any bulk or other
commission discounts or cash commissions rebates provided by
brokers or agents will be passed on to t+e Company The services
of ML Group companies w II be used by the Investment Advisers
where it is coisidered appropriate to do so provided that (a) their
Subject to the foregoing, and to any restrictions adopted by the
Di'ectors o r set forth in the Articles, the Investment Manager, the
Investment Advisers and any other ML Group company, and any
directors of the foregoing, may (a) have an interest in the Company
or in a i y transaction effected with or for t, or a re]ationsiip of any
descript on with a i y other person, which may involve a potential
conflict with their respective duties to the Company, and (b) deal
wit1 or othenv se use the services of ML Group companies in
connection with the performance of such duties, and none of them
will be liable to account for any profit or remunerat.on oer:ved
from so doing
For example, such potential conflicts may arise because:
(a) the relevant ML Group company undertakes business for
other clients;
(b)
Relationships with the ML Group
27.
The ultimate holding company of the Maiagement Company, the
Investment Manager and the Investment Advisers is Merrill Lynch &
Go, Inc , a company incorporated in Delaware, USA
28
Sublect to any pol.cies established by the Directors. when arranging
investment transactions for the Company, the Investment Advisers
will seek to obtain the best net results for the Company, taking into
account suci factors as price (including the applicab'e brokerage
commiss on or dealer spread), size of order, difficulty of execution
and operational facilities of the firm involved and the firm's risk in
positioning a block of securities. Therefore, wh,lst the Investment
Advisers general!y seek reasonably competitive commission rates,
the Compaiy does not necessarily pay the lowest commissm or
spread available. In a number of developing markets, cornm,ssions
(c)
any of the relevant ML Group company's directors or
employees is a d rector of, holds or deals in securities of, or is
otherwise interested in, any company the securities of which
are held by or dealt in on behalf of the Company,
the traisaction re ates to an investment in respect of which
the re evant ML Grodp company may benefit from a
commission, fee, mark-up or mark-down payable otherwise
than by the Company,
as agent for the Company in
relat on to traisactions in wh,ch it is also acting as agent for
the account of other clients of ML Group companies,
(0) a ML GroJp company may act
(e)
a ML Group company may deal in investments andlor
cuwicies as principal with the Company or any of the
Company's shareholders;
Appendix C
(f)
tne transaction is in units or shares of a coilective investment
08536, New Jersey, USA as its stockle1d:ng agent. MLIM LLC has
the discretion to arrange stock loan5 with highly rated specialist
financial institutions (the "counterparties"). Such counterparties
can include associates of MLlM LLC. Collateral, in the form of cash,
could be subsequently invested in money market instruments with
a rating of A-1 or er;uivalent. Collateral is marked to market on a
daily basis and stock loans are repayabie upon demand. At the cost
of the Company, MLlM LLC receives remuneration in re!ation to its
activ!t;esabove. Such remuneration shall not exceed 50% of the
revenue from the activities.
scheme or any company of wh ch any ML Group compaoy is
t i e manager, operator, banker, adviser or trustee,
(9) a ML Group company may effect transactions for the
Company invalv ng placings aid/or new issiles with another
ML Groap company which may be acting as principal or
receiving agent's commission.
31.
As described above, securities may be held by, or be an appropriate
investment for, t i e Company as we!l as by or for other clients of
the Investment Manager, the Investmerlt Advisers or other ML
Group companies. Because of different objectives or other factors,
a particular security may be bought for one or more sdch c:ients,
when other clients are selling the s a w security. If purchases or
sales of securities for the Company or such clients arise for
consideration at or about the same time, such transactions wil' be
made, insofar as feasible, for tne relevant clieits in a manner
deemed equitable to al:. There may be circumstances when
purchases or sales of securities for one or more ML Group c!ients
have an adverse effect on ot+er ML Group clients.
32.
With respect to the Funds (or porhon of a Fund) for which
it
provides investment management and advice, FAM L.P. a i d any of
its connected persons may effect transactions by or tirough the
agency of another person wmth weom FAM L.P. and any of its
connected persons have a i arrangement under which t i a t party
will from time to time prov de to or procure for FAM L.P. and any of
its connected persons goods, services or other benefits such as
research and adv sory services, computer hardware associated with
specialised software or research sevices and performance measures
etc., the nature of which is such that their provision ran reasonably
be expected to benefit the Funds as a whole and may contribute to
an improvement in the Funds' performance and that of FAM L.P. or
any of its connected persons in providing services to the Funds and
for which no direct payment is made but instead FAM L.P and any
of its connected persons undertake to place business with that
party, For the avoidance of doubt, such goods and services do not
include travel, accommodation, entertainment, general
adm:nistrat,ve goods or services, general office equipment or
premises, membersiip fees, employee salaries or direct money
payments. Soft doliar commiss:ons may be retained by FAM L.P. or
any connected persons of FAM L.P provided that the brokerage
rates are not in excess of customary institutional full-service
brokerage rates.
33.
For investments in the units of other UCITS and/or other UCls that
managed, directly or by delegation, by any ML Group company,
no management, subscript:on or redemption fees may be charged
to the Company on its investment in the units of such other UCITS
and/or other UCIs.
aee
34
Witn reference to Paragraph 3 5 of Appendix A, the Company has
appo nted Merri I Lync? Investment Managers, LLC ("MLIM LLC").
having its registered office at 800 Scudders Mill Road, Plainsboro.
Statutory and Other Information
35
Copes of the following documents (together with a ceqified
trans ation thereof where relevant) are avai'able for inspection
during usual business hours on any weekday (Saturdays and Public
Holidays excepted) at the registered off,ce of the Company and at
the offices of Merrill Lynch Investment Maiagers (LuxeTbourg)
S.A., 60 route de VPves, L-2633 Senlingerberg, Luxembourg
(a) the Articles of Assoc ation of the Company, and
(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 0
Appendix D - Authorised Status
Austria
services of Ceitra'ising Correspopdent in France T?is Prospectus is available
The Company has notified the Federal Ministry of Finaice of its inteniion to
distribute its Shares in Austria under Afiicle 69 of Ibe Bank,ng Act in
connect 01 with Art cle 36 of tbe Investment Fund Act 1993 Tnis Prospect&
is available in a Gerrnai language version, which includes additional
information for Austrian investors
in a French langdage version tbat inc'udes additioral information for French
investors The additional information for French investors should be read in
conjwtt on with t i e Prospec:us Documentation relating to the Cornpaly
car be inspected a: the offices of Credit Agr,cole Indosuez, 91-93, boulevard
Pasteur, 75710 Paris Cedex 15, France, dJring normal business hours and
copies of the docurneniation can be obtained from them if reqLired
Bahrain
Approval has been granted by t i e Bahrain Monetary Agency to market tbe
Company in Bahrain. subject to its regulatiors on the General Supewioi,
Operation and Marketing of Collettive Investment Schemes 1he Agency
takes no responsibility for the financial soundness of tbe Compaiy or for the
correciiess of aiy statemei; made or expressed in re'ation :beveto
Belgium
Tbe Company nas been registered with the Banking and F nance
Commissior in accordance w,t+ Article 130 of t+e Act of 20 July 2004
relating to financial transac:iom and t i e fiiancial markets Tbe French
language version of tb s Prospecxs distributed in Belgium includes addi:ional
information for 3elgian investors
Germany
The requiremei:s of Section 15c of :he German Foreign Investment Act have
been met and the Company's Siares may be disv'buted public'y ir :he Federa'
Republic of Germany Tiis Prospectusis available in a Gepman language
version, which includes additioral information for German investors
Gibraltar
Tie Company has obtained the status of a recognized scheme under Settion
24 of the Gibraltar Financial Services Ordinance, 1989. By virtue of a
confirmation from the Financial Services Commission the Company may
publicly distribute its Shares in Gibraltar.
Greece
Brunei
Approval has been granted to the Company by the Capital Markets
The Company's adm'nistrator in Bruiei is Tbe Hong Kong ard Shangha
Banking Corporation Limited. BrJrel Darussalam, who holds a license to
d stvibute Shares of the Company pursuant to Section 7 of the MJual Funds
Order 2001 Shsres may only be publicly distributed in Bruiei by ?he
Company's Bruvei admiris:ra:or
Commit:ee in accordance w:th the procedures of Articles 49a and 49b of
the Law 1969/1991, to distribute s:1 Shares in Greece. This Prospectus IS
ava:lable ir! a Greek language translariot. It must be noted that the relevant
Capital Markets Committee guidelines provide that "Mutual Funds do not
have a guaranteed retbrn and That previous performance does not secure
future performance".
Chile
The Company has obtained the registration of certain Funds witb the Risk
Classification Ccmmission IP Chile followirg an appl,ca:ion by a local
pension fund manager The Compaiy's Shares may on y be so'd to ceqain
Chilean pension funds
Denmark
Approvai has been granted to t k Company by the Dan sh Finaicial
Supervisory Authority (Finanstilsynet) in accordancewith Sections 11 and 12 of
the Danish Act o i Investment Associations, Special-Purpose Associatiors and
other Collec:lve livestment Schemes etc (Conso1ida:ed Act no 768 of 19 July
2005) to market its Shares to institutional investors in Dermark The simp' fled
prospectus as well as certain inforwa:ion on taxation is available in Danish
Finland
The Company has notified tne Financia:Supevision AL?ho:ity ir accordance
with Section 127 of tbe Act on Common Funds (29 1 1999148)and by virtde of
coifirmation from the FinancialSupervision Au:hority the Company m y
publicly distribute Jts Shares in Finland Th s Prospems and all other information
and documents that the Cornpary must publish in Luxembourg pursuant to
applicable Luxembourg Law are trais'ated into Finnish and are available for
Finnish investors at the offices of the appointed distributors in Finlard
France
The requirements of General Regli'ation of the "Autorite des Marches
Finaiciers" (the "AMF") having been met, the Company has beer: autiorised
to market its Shares in France Credit Agr cole lndosuez will perform the
Guernsey
Consent under the Control of Borrowing (Bailiwick of Guernsey) Ordqnances,
1959 :o 1989. has beer okained to the circulation of th.2 Prospectus IC
Guernsey Neitier the Guernsey Financial Services Commission nor the States
Advisory and Finance Committee takes aiy responsibhty for t k financial
soundness of the Company or for the correctness of any of the statement5
made or opiniops expressed wi:h regard to it
Hong Kong
The Company is au:horised as a mutual fund corporation by the Securities
and Futures Cornmissior in Hong Kong. The Commission takes no
responsib.lity for the financial soundnessof any schemes or for the
correctness of any statements made or opinions expressed in this Prospectus.
This Prospectus is available for Hong Kong residents in both English and
Chinese Investors using the Epglish language Prospectus should read the
Prospechs in coijunction with the Hong Kong addendum, which contains
addirional irfo-matioi for Hong Koig res:dents. This additional informatior,
is also contained ir: tile English/Chinese Summary of Prospectusthat is
available for Hong Kong investors who are considering applying for Class A
shaves o:ner than through Merrill Lynch The Company's representative in
Hong Kong is Merrill Lynch Investment Managers (Asia) Limited.
Ireland
The requirements of Regulai,ons 86 and 90 of the European Communities
(Undertakirgs for Co'lective 1nves:ment IF Transferable Securities)
Regulations. 1989 havirg been met, tbe Central Bank of Ireland has
Appendix
D
corfirmed that the Company may market its Shares in Ireland (subject to the
provis,ons of Regulatioi 87) AlBlBNY Fund Maiagement Limited will
peeform tne services of fac. y:i agent in lreiand Docmentation re'ating to
the Company can be irspected a: AIB/BNY Fund Maiagement Limited's
offices at Guild House, Guild k e e t , IFSC, Dublin 1, Ireland during normal
bus ness i-ours and copies of tqe documentdtioi c a i be obtaiied from tbem
if requ red AIB/BNY FLnd Maiagemert Limited will also forward any
Malta
The Company has been authorised as a Collective 1nves:ment Sc'leme by the
Malta Financial Services Centre ("MFSC") in respect of certain Funds Such
authorisation does not constitute a wavranty by the MFSC as to tbe
performance of the Company and the MFSC shall pot be liabie for the
performance or default of the Company.
redernptioi or dividerd paymer: requests or ary complaints relat ng to the
Netherlands
The Company bas notified the Netherlands Authority for the Financial
Markets (Autorkt Financiele Markten) in accordance with sect on 17 of the
Investments Ins:.tut,ons Act (wet toezicht beleggingsinstellirge~)and by
virtue of a conf.rmation from the Netherlands Authority for tbe Financia!
Markets may offer its Shares to the public in the Netherlands Tnis
Prospectus and al: other information and documents that the Company must
publish in Luxembourg pursuant to applicable Luxembourg laws are
translated into Dutch and are held availab!e by Merrill Lynch N.V., the
represenia::ve of the Company in the Netherlands
Covpany to the Transfer Agert
Iceland
Ti-e Company has notified ti-e Iceland c Financ al SLpervision AuThority
(Fjdrm6 aeftirliti ) in accordance with Sec:ion 43 of the Act No 30/2003 on
Undertak ngs for Collenive Investment i i Tramferable Securities (KITS) and
livestmeit Funds regarding foreign irvestmen: undertakings' rights to offer
UCITS-fJids in lcelaid By virtue of confimat on f*rm the Icelandic Financial
Supervision AJtkOrty the Company may market and sell its Shares in
Iceland This Prospectusand all other informa:ion and docJments tbat the
Company must pub18shin LuxernboLrg pmuant to appiicable Luxembourg
Law are not translated into Ice'andic as the Company's S h e s are only
inteided to be offered to professional investors in Iceland
Italy
The Company has obtained the reg stratior. in Italy of certain Funds from ti-e
Commissior.e Nazionale per le Societd e la Borsa (CONSOB) and from the
Baica d'lta:ia pursuant to article 42 of Legislative Decree no. 58 of 24
February 1998 and imp1emen:ir.g regulations. Tlle offering of the Funds can
on!y be cawed out by the appoirlted distributors indicated in the Italian
wrapper (New Subscription Form) in accordance with the procedures
indicated there:n. The Italian translatior. of this Prospectus is avaiiable for
Italian investors together with the Ital,ai wrapper and the other documents
indicated in the ltaiiai wrapper at the offices of the appointed
correspondent balk of the Company
Jersey
The consent of the Jersey Financial Services Commission (:he "Commission")
has been obtained pursJant to the Control of Borrowing (Jersey) Order
1958, as amended, to raise money in the Is'and by the issue of Shares of the
Company and for the d,sVibl;t:on of this Prospectus.The Commission is
protected by the Control of Borrowing (Jersey) Law 1947, as amended,
against liability arising fro71 the dxharge of its funaions under that law
Korea
A regis;ration statement for the distr:bdaor of Shares in the Company to the
public in Korea has been filed with the Firarclal Supervisory Commission in
accordance with the Ind4rectInvestment Assets Management Business Adof
Korea a i d its regulations thereunder
Macau
Au:howt,on is given by the Antondade Monetaria De Macau for the
advert siqg and marketing the Company and certain registered sub-funds in
Macau i i accordarce with Article 61 a i d 62 of Decree Law No 83/99/M of
22 November 1999 This Prospectus is available to Macau residents in both
English and Chinese
Norway
Tie Company has rotlfied the Banking, Iisurance and Securities
Commission of Norway (Kredit: :synet) ir accordance with the Securities
Fuids Act of 1981 and the RegJlatlon of 1994 regarding foreign investment
undertakings rights to offer UCITS-flrids for sale in Norway By virtue of a
confirmation letter from the Banking, Iisgrance and Securities Commission
dated 5 March 2001 the Company may market and sell its Shares in Norway
Peru
The Shares of the Company will not be registered i i PerLi under Decreta
Legislativo 862: Texto Unico Ordenado de la Ley del Mercado de Valores. as
amended, and may only be offered and sold to ir;sti:utional investors
pursuant to a private placement. The Company has obtaired registration in
Peru of certa r. Funds with the Superintendencia de Banca, Seguros y AFP
pursuart to Decreta Supremo 054-97-EF Texto Unico Ordenado de la Ley del
Sistema Pr:vado del Fondo de Pensiones, as amended, and the rules ard
regulations enacted thereunder,
Poland
The Company has notified the Polish Securities and Exchange Commission
(Komisja Papierow Wartoiciowych i Gield) of its intention to distribule its
Shares in Poland under aqicle 253 of an Act or. iaves:mert funds (Dz. U.
04 146.1546). The Company has established its represeitative and payment
agent in Poland. T k Company is obliged to publish in the M s h language
:his Prospectus, simplified version of Prospectus. annual and semi-annual
financial reports and other documents ard information reql;ired by the
provisions of lam of the state wbere it maintains its head office The
Company d:stributes its Shares in Poland by authorised distributors on!y.
Portugal
In Poqugal, the Comissao do Mercado dos Valores Mobilihrios bas issued
notifications of no objeaion to the marketing of certain FJnds by several
distributors (according to the list of Funds contained in the respective non
objectlon no:ifications) with whom the Principal Distributor has entered into
distribution agreements
Appendix D
Singapore
The offer or invi:a:ion of Shares of tne Company which is the subject of th s
Prospectus is only a!lowed to be made to accredited investors and ro: tne
retail public in 5 ngapore. Moreover, the Prospecws is not a prospectus as
defined i t the Securities and Futures Act, Chapter 289 of Singapore (the
"SFA"). Accordingly, statutory liability under the SFA in relation to the
content of prospectuseswould not apply. You should corsider carefully
wbether the investmen: is siltable for you.
The Company s regulated under Pan I of :le Luxembourg Law of 20
December 2002 (the "2002 Law"), as amended, relating to undertakings for
collective investmeit and is subject to the supervision of the Commission de
Survei'lance du SecteLr Fiiancier (the "CSSF") The cor:act details of t i e
LLxembourg CSSF are as follows
Address:
110. route d'Arlon
L-2991 Luxembourg
This adthorisation is r o t to be corsidered as a positive assessvei: made by
this supervisory authority of the quality of t+e Sbares offered for sale
The Investment Manager of the Company, Merrill Lynch Investment
Managers (Channel Islands) Limited, is regulated by the Jersey Financial
Serv:ces Commission. T i e cortac: details of the Jersey F.nanc a! Services
Commission are as foliows:
Address.
PO Box 267
Nelson House
David Pace
St Helier
Jersey, JE4 8TP
Channel Islands
This Prospectus has not been reg:steredas a prospectus w r h the Moretary
Authority of Singapore. Accordingly, this Prospealis and any other
document or material in connection wi:h tne offer or sale, or invitation for
subscription or pdrchase, of Shares may not be circulated or distributed, nor
may Shares be o'fered or sold, or be made the subject of an invitation for
silbscr ption or purchase, whsher directly or ind rectly, to the pub'ic or any
membe: of the public in Singapore other than (i) to an institutional investor
specified in Section 304 of the SFA, (11) to an accredited investor, and in
accordarce with the conditions, specified in Section 305 of the SFA or (111)
otherwise pursuant to, and in accordance with the cond,tms of, any o:kr
applicable provis on of the SFA.
Spain
The Company has obta ned the registration of Class E Shares of cenain
Funds wi:h trle Comisidn Nac:oral del Mercado de Valores in Spaii Class E
Shares of these Funds may be distributed to the public r Spain tnrough
distributors appointed by the Principal O i s t h t o r
Sweden
TPe Compary has notified the Financial Supervisoy Au:hority in accordance
with Section 7 b of the Securities Fund ACi (1990 1 1 14) and by virtue of a
confirmation from the Financial Supewisory Adthority the Company may
pub1cly distribute its Shares *nSweden
Switzerland
T i e Swiss Federal Bankiig Commission has authorised Merrill Lynch
Investment Managers Limited (London), Zurich Branch, as the Company's
Swiss repesentatve. ta offer and dis:ribute the Sbares of each of the
Company's Funds in or from Switzerlard in accordance with Article 45 of the
SW~SSFederal Law on lnvestrnert Funds of 18th March 1994 A German
language versioi of this Prospectus is available which also includes :he
additional inforTation for Swiss investors in Appendix F of this Prospectds
Taiwan
The Company has obtaired the registration of certain FLnds wit1 the
Securities and Exchange Commission ("SEC") in Ta,wan, fol:ow,ng an
applicat,on by a loca securities irvestment consulting enterprise ("SICE")
The Shares may be distributed under the rules of tne SEC and in accordance
witb t'lc Securities and Exc9ange Law Shares may be recommended by the
SICE for pbrchase by its cutomers or directly to customers of authorised
banks
United Kingdom
The conter::s of tPis Prospectus have been approved solely for the purposes
of secion 21 of the UK Financial Services and Markets Act ZOO0 (the "Act")
by the Company's UK Dis:ributor, Merrill Lynch Investment Managers
Limited. 33 King William Stree:, London EC4R 9AS (which is regulated by the
Financia; 5erv:ces Authority in the conduct of investment business in the UK)
The Company has obta,ned the status of "recogr.ised scheme'' for the
purposes of the Act Some or all of the protections provided by the UK
regulatory system will roi apply to investments in the Company.
Compensation under the UK Investors Compensat on Scheme will generally
not be availabe. The Company prov:des the facilities required by the
regulations governing such schemes at the offices of Merrill Lynch
Investment Managers Limited. UK bea*er shareholders should contact the UK
D stributor for the arrargements that will apply to them. An applicart for
Snares will not have the r:ght to cancel his application under the UK
Financia; Services AEthority Conduct of Business Rules. Further details or:
Merrill Lyrch 1nternat;onal Investment Funds can be obtained from the UK
Dis:r,butor's Broker Suppor; Desk in Lopdon, telephone: 08457 405 405.
USA
The Shares WII' not be registered under the US Securities Act of 1933, as
ameided ( h e "Secur ties Act") and may not be directly or indirectly offered
or so'd in tne USA or aiy of its territor es or possessions or areas subject to
i:sjurisdiction or to or for the benefit of a US Person The Company will not
be registered uider the US Investment Company Act of 1940 US Persons
are not permitted to own Shares Attention is drawn to paragraphs 3 and 4
of Append x B wh,ch specify certain compulsory redemption powers and
define "US Person"
Generally
The d:stributon of this Prospectus and the offering of the Shares may be
au:horised or restr,cted in certain other jwisdictions. The above information
is for general guidance oily and it is the responsibilityof any persons in
possession of th's Prospectus a i d of any persons wishing to make
applicatioi for Shares to inform themselves of, acd to observe, all appl:cable
laws and regula:ions of any relevant jurisdictions.
Appendix E
Appendix E - Summary of Charges and Expenses
Class A
Clas B
Class C
Class D
Class E
Class I
Class C
Class X
Class A
5.00%
0 00%
0.00%
2.00%
3.00%
0.00%
0.00%
0.00%
5 00%
0 00%
0 00%
3 00%
1 50%
1 50%
0 75%
150%
0 00%
100%
0 OG%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 00%
0 00%
0 00%
0 50%
0 00%
G 00%
0 00%
1 00% 4 00% to 0 00%
0 00%
0 00%
1 50%
100%
100%
0 00%
0 00%
0 00%
0 00%
0 00%
0 55%
0 00%
0 00%
0 00%
Class A
5 00%
0 00%
0 00%
Class B
0 00%
Class E
Class J
Class Q
Class X
100%
100%
c
0 00%
1 go%
1 50%
1 50%
Class 0
1 OG%
0 75%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 GO%
0 00%
0 00%
C'asr E
Cms f
3 00%
0 00%
150%
0 00%
0 50%
0 00%
Class X
0 00%
0 00%
0 00%
Cles A
Class a
Class C
Class E
Class I
class G
C!ass X
5.00%
1.35%
1.35%
1.35%
0.00%
O.Oa%
1 00% 4.00% to 0.00%
1 25% 1 00% to 0.00%
0.50%
0 00%
0.00%
0.00%
CldS
Class A
0 00%
0 00%
3 00%
0.00%
1.35%
0 00%
1.35%
0 00%
0 00%
0o w
0 00%
0 00%
0.00%
1.25% 4.00% to 0 GO%
0.00%
O.OG%
100%
100%
100%
0 00%
0 00%
1 00% 4 00% to 0 00%
1 25% 1 00% lo 0 00%
0 50%
0 00%
0 00%
0 00%
Class C
Class E
3 00%
Class X
0 00%
Class A
Class 0
2.00%
2.00%
2 00%
1 CO%
2 GO%
0 00%
Class J
5.00%
0 00%
0 00%
2 00%
3 00%
0 00%
0.00%
Class 0
Class X
0 00%
0 00%
2 00%
0 00%
0 GO%
0 00%
1 2 5 % 400% to000%
Class A
Class B
Class C
Class E
Class 1
5 00%
0 00%
135%
135%
0 00%
135%
0 00%
Class 9
Class X
3 00%
0 00%
0 00%
0 00%
0 00%
Class A
Class B
5 00%
0 00%
1.50%
Class C
0.00%
Class D
2 00%
Class E
3 00%
0 Do%
Class C
Class 0
Class E
Class J
Class Q
0 00%
Class X
0 W%
0 00%
Class A
Class B
5 00%
0.00%
Class c
Class E
0.00%
1.25% M O % tOO.OD%
Class Q
Class X
Class E
5 00%
0 00%
Class C
0 00%
Class E
Class J
3 00%
135%
1.35%
1.35%
1.35%
0.50%
0.00%
0 00%
0.00%
0 00%
0.00%
Class Q
1 35%
1 25% 4.00% to0.00%
Class X
0 00%
0 00%
0.00%
0 00%
Class A
5 00%
0.00%
1.00% 4 00% to 0 00%
0 00%
O.W%
Class B
0 00%
150%
150%
Class c
0 00%
150%
Class 0
Class E
Class 1
Class X
2 00%
0 75%
0 CO%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 00%
0 00%
0 00%
3 00%
150%
0 50%
0 00%
0 00%
0 OC%
0 00%
0 00%
0 00%
0 00%
0 00%
58 Merrill Lynch International lnvestrrent Funds
5 00%
0 00%
0 00%
1 .OO%
0 00%
0 00%
0 00%
0 00%
1 00% 4 00% to 0 00%
125% lOG%ioOW%
0 50%
0 W%
0 00%
0 00%
1 00% 4 00% to 0 00%
Class B
Class C
Class A
Class B
OW%
As from
135%
0 55%
1 .SO%
1 SO%
0.75%
1.50%
0.00%
1 SO%
0 00%
0 00%
1 00% 4 00% IO 0 00%
1 25% 1 00% to C 00%
0 00%
0 50%
0 00%
0 00%
0 00%
0 00%
0 00%
0 00%
1 25% 1 00% to 0 00%
0 50%
OW%
0 00%
0 00%
100% 400% tOOW%
o 00%
0 00%
0 00%
1.00%
4 00% to
0 00%
0 00%
1.00% 4.00% to 0 00%
1.25% 100%toOOO%
0 00%
0 50%
0 00%
0 00%
0 00%
0.00%
1 25% 4 00% to 0 00%
0 00%
0 00%
oo w
0 00%
1 .OO%
1 .OO%
1 .OO%
1.00%
1.15%
1.25% 1.00% toO.W%
0.50%
0.00%
1.25% 4.00% to 0.00%
0 00%
0.00%
0.00%
3.00%
0.00%
1 00% 4 00% to 0.00%
0 00%
29 M a y 2006,the fee table for the Euro Bond Fund shall read:
Class A
Class B
5 00%
G.OO%
0.75%
0.75%
Class C
0.00%
0.75%
1.00% 4.00% to 0.00%
1.15% 1.CO% to 0 00%
Class E
3.00%
0.75%
0.50%
Class I
0 00%
Class Q
Class X
0 00%
O.W%
1.15%
0.00%
0 00%
1.25% 4 00% to 0 00%
D 00%
0.00%
0 00%
0.00%
0 00%
0 00%
0.00%
Appendix E
I
Class A
0 00%
0 75%
0 00%
0 00%
Class E
c CO%
D 00%
Clasr C
Class E
Class J
0 00%
0 00%
0 00%
0 75%
0 75%
0 00%
0 00%
0 75%
G 00%
0 0096
0 25%
0 00%
0 00%
0 OG%
0 00%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 00%
0 50%
0 00%
0 00%
0 00%
Class 0
0 00%
0 75%
0 00%
0 00%
0 00%
0 00%
0 00%
0 00%
Class X
0 00%
0 00%
0 00%
0 00%
Class A
5.00%
150%
0 c095
0 00%
150%
Clasr A
Class B
1 50%
0 00%
0 00%
0 00%
1 00% 4 00% to 0 00%
5 00%
Class B
Class c
0 00%
1 5C%
1 00% 4 00% to 0 00%
0 00%
2 00%
1 25% 1 OG% to 0 00%
0 00%
0 00%
Class C
Class D
0.00%
2 00%
15C%
0 75%
0 75%
0 50%
0 00%
c 00%
0 00%
Class E
Class J
3 00%
0 00%
150%
0 00%
1 25% 1 00% to G 00%
0 00%
0 50%
0 00%
0 00%
0 00%
1 25% 4 00% to 0 GO%
0 00%
0 00%
Class Q
Class X
0 00%
0 00%
100%
0 00%
1 00% 4 00% to 0 00%
0 00%
0 00%
Class A
5 00%
0 00%
0 00%
100%
100%
100%
0 00%
0 00%
1.00% 4 00% to 0 00%
1 25% 1 00% to 0 00%
Class E
3 00%
Class J
c 00%
1.00%
0 00%
Class A
5 00%
100%
Class B
100%
E
0 00%
0 00%
3 00%
100%
Class J
0 00%
Class X
Class c
Class
Class D
Class E
Class J
Class Q
Class X
Class A
Class B
Class C
Class D
Class E
Class J
Class Q
Class X
Class A
3 00%
0.00%
100%
150%
0 00%
0 00%
150%
0 00%
115%
0 00%
5 00%
0 00%
1.50%
0 00%
2 00%
0 75%
3.00%
0.00%
0 00%
150%
0 00%
0 00%
0 00%
0 00%
0 00%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 00%
0 00%
0 CO%
0 50%
0 00%
0 00%
0 00%
1 25% 4 00% to 0 00%
0 00%
0 00%
5 00%
175%
0 00%
150%
150%
115%
100%
0.00%
0.00%
1.00%
1 .OO% 4.00% to 0 00%
Class C
0.00%
3 00%
1.OO%
1.OO%
0.50%
0 00%
1.15%
o.ooo/.
0.00%
0 00%
Clars X
0.0046
0 50%
0 00%
0 00%
0 00%
0 00%
0 00%
115%
0 OG%
175%
0 00%
0 00%
1 00% 4 00% to 0 00%
0 00%
2 00%
175%
100%
1 25% 1 OG% to 0 00%
0 00%
0 00%
175%
Class 1
Class Q
3.00%
0 00%
0 00%
0 00%
175%
Class X
0.00%
0 00%
0 50%
0 00%
0 00%
0 00%
1 25% 4 00% to 0 00%
0 00%
0 00%
Class A
Class B
Class c
5.00%
1 50%
0 00%
0 00%
150%
150%
0 00%
0 00%
1 00% 4 00% tO 0 00%
1 25% 1 00% to 0 00%
2 00%
3 00%
0 75%
150%
0 of)%
0 00%
0 50%
0 00%
1 [XI%
0 00%
0 00%
0 00%
5 00%
Class B
0 75%
150%
0 00%
0 00%
5 00%
0 00%
0 00%
Class A
0 00%
0.00%
Class B
Class C
Class E
Class 1
Class Q
Class X
115%
0 0(1%
Class Q
Class A
Class 0
G 00%
0 00%
1 25% 1 00% to 0 00%
0 00%
2 00%
3 00%
0 00%
0 00%
Class D
Class E
Class Q
150%
0 00%
Class C
0 00%
0 00%
0 00%
0 00%
Class X
150%
Class B
G 00%
0.50%
0 00%
0 00%
0 00%
1.25% 4 CO% to 0 00%
0 00%
0 00%
Class E
150%
Class D
Class E
Class J
Class x
Class c
0 00%
0 00%
1 00% 4 00% to 0 00%
5 00%
Class A
0 00%
Class B
0 EO%
Class J
0 00%
1.25% 1.00% toO00%
0.00%
O.W%
0.00%
1.25% 4.00% t o 0.00%
0.00%
0.00%
0 0%
0 00%
Class A
5 00%
0 75%
Class B
Class C
0 00%
0 00%
0 75%
0 75%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 00%
Class 0
0 40%
0 00%
Class J
Class X
2 00%
3 GO%
0 00%
0 00%
0 75%
0 00%
0 00%
0 50%
0 00%
0 00%
Class A
Class B
5 00%
0 00%
150%
150%
0 0%
0 00%
1 00% 4 00% to 0 00%
Class C
Class D
0 00%
2 00%
150%
0 75%
1 25% 1 00% to 0 00%
0 00%
0 00%
Class E
3 00%
Class J
0 00%
Class X
0 00%
1 50%
0 00%
0 00%
0 50%
0 00%
0 00%
Class E
0 09%
0 00%
0 00%
0 00%
0 09%
0 00%
0 00%
1 00% 4 00% to 0 00%
0 00%
59
Appendix E
Class 4
Class A
5.00%
1.50%
Class B
0.00%
0 00%
150%
Class C
Class 0
Class E
2 00%
3 OG%
Class J
Class Q
0 00%
0 00%
0.75%
1.50%
0.00%
1.15%
1.50%
0.00%
0 00%
000%
100% 400% toO00%
0 00%
0 00%
0.00%
Class Q
Class X
0 00%
0.00%
1.25% 4.00% to 0.00%
0.00%
0.00%
100%
0 00%
0 00%
Class D
0 75%
15G%
0 00%
0 00%
0 00%
Class X
2 00%
3 00%
0 00%
0 00%
0 00%
1 25% 1 GO% to 0 00%
0 00%
0 00%
0 00%
0 00%
0 00%
0 00%
0 00%
0 00%
0 00%
Class A
5 00%
150%
0.00%
1.75%
0 00%
0 00%
Class B
Class C
Class D
O,OO%
1SO%
0 00%
2 00%
1.50%
0 75%
Class E
Class J
1.50%
0 00%
Tlaa X
3 00%
0 GO%
0 00%
Class A
Class B
5 00%
0 00%
Class C
0.00%
1.50%
1 25% 1 .OO% to 0 00%
Class D
2 00%
0.75%
Class E
3.00%
Class J
Class Q
0 00%
0 00%
150%
0.00%
115%
0.00%
0.00%
0 50%
0 00%
0 00%
0 00%
1 25% 4.00% to 0 00%
Clxq X
n M%
n 00%
0 00%
0.00%
0.00%
0 00%
1.OO% 4 CO% t o 0 00%
1.25% 1.00% to 0.00%
1 50%
0 00%
0O W
Class A
5.00%
150%
1 50%
150%
Class A
Ciass B
5 00%
0 00%
150%
1.50%
Clas c
0.00%
1.50%
Class 3
2 00%
0.75%
0 00%
0.00%
1 00% 4 00% to 0 00%
1.25% 1.OO% to 0.00%
0.00%
0.00%
Class E
Class J
Class C
Class X
3 00%
0 00%
0 00%
0 00%
150%
0.00%
1 .OO%
0.00%
0.50%
0.00%
0.00%
0,009b
1.00% 4 00% to 0.00%
0 00%
0.00%
Class A
Class 8
Class C
5.OG%
1 50%
0 00%
O.OC%
150%
Class D
2.0095
0 75%
Class E
150%
Class I
3.00%
0 00%
Class X
0.00%
1 50%
0 00%
0 00%
1 00% 4 00% to 0 00%
1 25% 1 .OO% to 0.00%
Class E
Class J
150%
150%
150%
0 00%
1.50%
1.50%
0.00%
0.00%
1 00% 4.00% 10 0 00%
Class A
5.00%
1.50%
Class 0
150%
0.00%
0.00%
0 00%
Class C
0.00%
0 00%
2 00%
3 W%
0.00%
0 00%
0.75%
Class A
Class B
5 00%
0 00%
Class C
Class D
0.00%
0 00%
3.00%
135%
1.35%
0 00%
0.00%
0.00%
1.35%
135%
n nnc
0.00%
0.00%
1.00% 4 00% ti3 0.00%
1.25% 1.00% to 0.00%
0 50%
O.GO%
0 00%
0.00%
1.25% 4.00% Io 0.00%
0.00%
0.00%
0.75%
0 00%
0.00%
1 00% 4.00% to 0.00%
1.25% 1.00%?00.#%
0 00%
0 00%
0 00%
1.50%
0.00%
0.50%
0 00%
0 00%
0 00%
150%
0.00%
0 00%
1.50%
0 00%
1.50%
0 00%
2 00%
3 110%
150%
0.00%
0 GF%
1.25% 4.00% lo O.OC%
0.00%
Class X
1.50%
0 00%
0.00%
0.50%
0.00%
0.00%
0.00%
0.00%
1.75%
0.00%
0.00%
1.75%
1 GO% 4.00% to 0 00%
1.75%
1 .Do%
1.25% 1 .00% to 0 00%
0.00%
0 00%
0 50%
0.00%
0 00%
0.00%
1.25% 4.0096 to 0 00%
0.00%
0 00%
!SO46
0.00%
0 00%
Class E
2 00%
3 00%
Class J
0.00%
0.00%
Class 4
Class X
0 00%
1.75%
O.OG%
0 00%
0 00%
1.00% 4 00% to 0 00%
1.25% 1 .OO% to G.W%
0.00%
0.00%
0 00%
0 00%
135%
0 00%
0 50%
0.00%
0.00%
5 00%
0.00%
1 00% 4 00% to 0 0%
0.50%
0 00%
0.00%
0.00%
Class E
Class J
0 00%
0 00%
G.009'0
0.50%
0.00%
Class D
Class X
0 00%
0 00%
Class E
Class J
1 25% 1 00% to 0 00%
G 00%
0 00%
0 50%
0 00%
0 75%
Class J
Clzss Q
0 00%
0 50%
0.00%
0.00%
0 00%
0 00%
3 00%
0 00%
Class D
Class E
0 00%
150%
0.00%
0.50%
0 00%
5 00%
0 00%
2 OC%
Class C
150%
0 75%
2 00%
3 00%
0 00%
Class B
Class C
Class C
Class D
Class E
Class J
Class X
5 00%
0 00%
1 0 0 % boo% too0046
1 2 5 % lOO%toO00%
Class A
5 00%
0 00%
class A
Class B
0 00%
150%
0 00%
0 00%
1 OG% 4 00% :O 0 00%
Class A
Class B
Class A
Class B
Class C
Class E
Class i
Class 9
150%
Class B
Class C
Class D
0 00%
5.00%
0 00%
0.00%
0.00%
1 00% 4.00% t o 0.00%
1.25% 1 .OO% t o 0.00%
1.752
OW%
0 00%
Appendix E
5 00%
0 00%
1 50%
150%
0 00%
0 00%
1 00% 4 00% to 0 00%
0 00%
3 00%
0 GO%
1 50%
150%
0 00%
0 50%
0 00%
Class 0
0 00%
Class X
0 00%
150%
0 00%
1 25% 4 00% to 0 00%
0 00%
0 00%
c 00%
150%
150%
0 00%
2 00%
3 00%
1 50%
0 75%
150%
0 00%
0 00%
0 00%
0 00%
1 00% 4 00% to 0 00%
125% 100%toO00%
0 00%
0 00%
0 50%
0 00%
0 00%
0 00%
5.00%
0 00%
1.50%
1.5016
oo m
1.50%
0.75%
0 00%
1 00% 4 00% to 0 00%
1 25% 1 00% toOOO%
0 00%
0 00%
1.50%
0.00%
0.50%
0 00%
1 15%
1 2596 4 00% to 0 00%
1.50%
1.50%
0.00%
0 00%
100%
0 00%
0 00%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 CO%
0 00%
0 00%
0 50%
0 00%
0 00%
0 00%
1 00% 4 00% !O 0 00%
0 00%
0 00%
175%
175%
0 00%
0 00%
1 00% 4 00% to 0 00%
Clarr A
Class B
Class c
Class D
5 00%
0 00%
0 00%
2 00%
1 25% 1 00% to 0 00%
G 00%
0 00%
Class C
Class D
Class E
Ciass J
3 00%
0 00%
175%
1 00%
175%
0 00%
0 50%
0 00%
Class E
Class J
Class A
5.00%
0 00%
150%
1.50%
0.00%
0 OG%
1 00% 4 00% to 0 00%
0.00%
2 00%
3 00%
0.00%
1.50%
0.75%
1.50%
0 00%
1.15%
0.00%
Class B
Class C
Class 3
Class E
Class J
Class Q
Class X
Class A
Class E
C!ass E
Class C
Class D
Class E
Class J
Class Q
Class X
0 00%
0 00%
175%
2 00%
100%
175%
3 00%
0 00%
0.00%
0.00%
115%
0 00%
0 00%
0 00%
1 25% 1 00% to 0.00%
Class A
Clars B
Class C
Class E
Class J
0.00%
0 OG%
Class A
Class B
Class c
Class C
1 00% 4 00% to 0.00%
0.00%
Class E
Class J
0 00%
0.50%
0.00%
0 00%
0 00%
Class 0
Class X
Class A
5 00%
100%
0 00%
Class 6
0 00%
100%
1 00% 4 00% to 0 00%
Class C
Class E
0 00%
3 00%
100%
t 00%
1 25% 1 00% to 0 00%
0 50%
0 00%
Class J
0 00%
0 00%
0 00%
100%
0 00%
0 00%
1 25% 4 00% to 0 00%
n nns
n nnsr
Class C
Class X
n nnu
Class A
Class E
Class C
Class C
Class E
Class C
Class E
Class J
Class Q
Class X
0 00%
0 00%
0 GO%
0 00%
0 00%
0 75%
0 75%
0 00%
0 25%
0 00%
0 00%
0 00%
0 00%
0 OG%
0 00%
Clasr A
Clas B
0 00%
0 00%
0 75%
0 00%
0 00%
Class C
o nnu
0 00%
0.00%
0 00%
0 00%
0 00%
o 011%
5 00%
0 00%
0 00%
0 00%
1 00% 4 00% to 0 00%
1.50%
1 25% 1 00% to 0 00%
2.00%
3 00%
0 75%
1 SO%
0 00%
0 00%
0 00%
0 00%
0.00%
0 00%
0 00%
1.00%
0M t
0.50%
0 00%
0 00%
1 00% 4 00% to 0.00%
n nnv+
n no%
0 00%
5 00%
0 30%
0 00%
0 00%
0 00%
0 90%
0 90%
1 W% 4 00% tO 0 00%
3 00%
0 90%
0 00%
0 65%
1 25% 1 00% to 0 00%
0 50%
Class E
Class J
Class Q
Class x
0 00%
0 CO%
0 00%
0 00%
0.00%
Class A
Class B
5 00%
0.00%
1.35%
1.35%
0.00%
1 25% 4 00% to 0,OGYa
0.00%
0 00%
Class C
0 00%
1.35%
Class E
1.35%
1 25% 1 .OO% to 0.00%
050%
0 00%
Class J
3 00%
0 00%
0.00%
O.W%
Class Q
0.00%
0.55%
0 00%
0 75% 4 00% to 0.00%
Class X
0.00%
0.00%
0.00%
5.00%
0 OG3/.
0 00%
1.50%
150%
1509
0.00%
0 00%
1 00% 4 00% tO O.OG%
1.25% 1 .OOY to 0.00%
Class E
3.00%
Class J
Class Q
0 00%
0 00%
150%
0.00%
1.50%
0 50%
c 00%
Class X
0 00%
0 00%
Ciass A
Clasr E
Class C
Class X
0 75%
G 75%
0 00%
o (10%
0 00%
2 00%
3 00%
0 00%
0 00%
0 00%
Class J
Class Q
Class A
Class E
5 00%
1 25% 1 00% to 0 00%
0 00%
0 00%
0 00%
0 00%
1 00% 4 00% to 0 00%
0 00%
n 00%
0 00%
1 .OO% 4.00% to 0.00%
0.00%
Appendix E
Class A
Class A
3 00%
Class B
C'arr E
0 00%
0 00%
3 00%
Class J
0 00%
Class
c
100%
100%
0 00%
0 00%
100%
100%
1 00% 4 00% to o 00%
1 25% 100% to 0 00%
0 50%
0 00%
0 00%
0 00%
a no%
Class B
Class C
Clasr B
Class C
Class E
Class J
Class Q
Class X
1.50%
a 00%
1S O %
1.50%
100% 4.00% to 0 00%
0 00%
2 W%
3 00%
0 00%
0.75%
1 25% 1 00% to 0 00%
0 00%
0 00%
1.50%
0 50%
0.81%
0.00%
0 00%
0 00%
0 00%
0 00%
1 .SO%
0.00%
1 25% 4.00% to 0 00%
0 00%
0 00%
1.50%
1.50%
150%
o 00%
0 00%
1 00% 4 00% to
o 00%
Class C
5.00%
0 00%
0 00%
Class 0
Class E
2.00%
3 00%
0.75%
0.00%
1.50%
1.25% 1 .OO% to 0.00%
o 00%
0 00%
0.50%
0 00%
0.00%
Class J
0.00%
Class P
Class X
OW%
0.00%
1 .OO$
0 00%
0 00%
1 00% 4 00% to 0 00%
000%
0.00%
0.00%
Class A
Class E
5 00%
0 00%
0 00%
3 00%
0.00%
G GO%
0.85%
0.85%
O.M)%
0.00%
0 00%
1.00% 4.00% to 0.00%
1.25% 1 00% to0.0096
0.50%
0.00%
0.00%
0.00%
0.00%
0 00%
0 GO%
0 00%
Class 0
Class E
Clarr J
Class Q
Class X
C iass A
5 00%
0 00%
0 00%
0 00%
0 00%
0 00%
0.00%
0 75%
0.75%
0 00%
0 00%
0.00%
0.00%
0.75%
0.75%
0 00%
0.25%
0.00%
0.00%
0.00%
0.75%
0 00%
0 OC%
0.00%
0.00%
0.00%
0.00%
0 00%
Class A
Class B
0.00%
0 00%
Class A
5.00%
1.50%
0 00%
Class B
Class C
o owo
0 00%
150%
1 .SO%
Class D
Class E
Class J
z 00%
0 75%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 W%
0 00%
0 00%
3.00%
0 00%
1.50%
0 50%
0 00%
Class Q
Class X
0 00%
0 00%
1 15%
0 00%
0 00%
OW%
1 25% 4 00% to 0 00%
0 00%
Class C
Class E
Class J
Class X
Class A
5 00%
150%
0 00%
0 00%
Class A
5 GO%
1.75%
0.00%
Class 8
0 00%
1 50%
Class 0
0 00%
Class C
Class D
Class E
O.OG%
0 00%
1.oo% 4 00% to a 00%
1.25% 1 .GO% to 0.00%
0 00%
Class C
Class D
1.75%
175%
2.0C%
1 50%
0 75%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 00%
2 00%
1 .OO%
3 00%
150%
0 50%
Class E
3.00%
1.75%
0.00%
0.50%
0.00%
0 00%
Class f
Class Q
riarr x
0.00%
0 00%
0 00%
0 00%
0 00%
0 00%
4 00% to 0 00%
1.75%
1.25% 4.00% to O,OO%
o 00%
0 00%
0 CO%
o 00%
o 00%
0 W%
0 00%
1 OG%
Class I
Class Q
Class X
0.00%
100%
0 00%
0.00%
0.00%
Class A
Class B
Class c
5 00%
1 00%
1 00%
100%
0 00%
0 00%
1 00% 4 00% to 0 00%
1 25% 1 00% to 0 00%
Class A
Class B
5 00%
0 00%
175%
1 75%
0 00%
o 00%
1 00% 4 00% t3 0 00%
Class E
3 00%
0 50%
0 00%
100%
0 00%
0 00%
0 OCh
'
0 00%
OW%
0 75% 4 00% to 0 00%
3 00%
0 00%
1
1 00%
Class D
Clasr E
Class J
2 00%
Class J
Class Q
100%
0 00%
G 00%
0 00%
Class Q
Class X
0 00%
0.00%
Class A
5.00%
0 00%
Class A
Clao B
Ciass C
Class D
Class E
Class J
Class 0
Class X
0 00%
5 00%
0 00%
0 00%
2.00%
3.00%
0 00%
0 00%
0 00%
1.50%
150%
0 00%
0 00%
0 00%
0 CO%
0 00%
o aa%
Class C
0.00%
0 00%
o 85%
0.85%
0 00%
1 75%
D.00%
o 00%
0 00%
1 25% 1 00% to 0 00%
0 00%
0 50%
0 00%
0 00%
0 00%
100% 400%toO00%
0 00%
0 00%
1.75%
0 GO%
1.OOA 4.00% to 0 00%
0 50%
0 00%
0 00%
75%
0 OG%
100%
0 0%
0 CO%
1 00% 4 00% to 0 00%
1 2S% 1 00% to 0 00%
0 00%
0 00%
0 00%
0 00%
Class C
Class D
0 00%
0 50%
0 00%
0 00%
0 00%
Class E
3.00%
1.75%
1.75%
1 .OO%
1.75%
100%
0 00%
1 00% 4 00% !a 0 00%
Class J
a 00%
0 00%
0.00%
Class 9
Class X
0 00%
1.50%
0 00%
0 00%
1.25% 4 00% to 0 00%
0 00%
0.00%
1.50%
0 75%
150%
0 00%
a 00%
Class B
2.00%
1.25% 1
0 00%
00% to 0 00%
0 00%
Appendix E
Class A
Class B
Class C
5 00%
0 00%
175%
175%
0 00%
0 00%
1 00% 4 00% to 0 00%
0 00%
2 00%
175%
1 25% 1 OC% to 0 OC%
Class 0
Class E
100%
3.00%
175%
0 00%
0 50%
Class J
0.00%
0 00%
Class Q
0 00%
0 00%
175%
0 00%
0 00%
1 25% 4 00% to 0 00%
0 00%
0 00%
100%
0 00%
0 00%
1 00% 4 00% to 0.00%
1 25% 1 00% to 0 00%
Class X
Class A
Class B
Class c
Class E
Class J
Class X
Class A
Class B
Class C
5 00%
0 00%
0 00%
100%
100%
100%
0 00%
0 00%
0 W%
3 00%
0 00%
0.00%
0 00%
0 00%
D 50%
0 00%
0 00%
5 00%
0 00%
1 75%
1 75%
0 00%
0 00%
1 OC% 4 00% to 0 00%
0 00%
1 75%
2 00%
3 00%
100%
1 25% 1 00% to 0 00%
0 OG%
0 00%
0 OC%
0 00%
o 00%
Class 0
Class E
Class J
0 00%
1 75%
0 00%
Class Q
Class X
0.00%
0 00%
0 00%
0 50%
0 00%
0 00%
0 00%
1 25% 4 00% to 0 00%
0 00%
0 W%
Class A
Class B
Class C
Class 0
5.00%
0 00%
0 00%
2 00%
3 00%
0 00%
0 00%
0 00%
1 75%
0 00%
Class E
Class 1
Class Q
Class X
150%
1.75%
0 00%
1 00% 4 00% to 0 00%
1 Y5%
1 25% 1 00% to 0 00%
100%
0 00%
0 50%
0 00%
0 00%
0.00%
1.00%
0 00%
0 00%
0 00%
c 00%
1 75%
1 00% 0 00% to 0 00%
0 00%
Note Subject to the approval of the board of Directors. the Management
Fee for a r y Fund may be increased up to 2 2 5 % by givirlg
shareholders three months' prior not,ce in accordance with
paragraph 21 of Appendix C Any increase above this level would
reqdire approval of shareholders at a general meeting
Appendix F
Appendix F - MLllF available funds and share classes
All Fmds and Share Classes listed below are i i existence as at the time of
issue of the Prospectus This I st may be updated from time to time A copy
of the apdated list may be obtained by applica:ion to the Investor Service
Centre Not al' share classes are registered in all jurisdictions
Share class descriptions conta,i a numerica' code to represent its reievant
d stribution method as defined in :he Prospec:us, for example.
AI = 'A' share class wbich follows Distributing (D) ca'culation
method (dividend is calculated montqly based upon income
accrued during the d vidend period less expenses anc distributed to
SClareholders montdy based upon the number of shares held a t the
month end
A2 = ' A share class which is Nan-Distributing (no dividend is paid)
A3 = 'A share class which follows Distributing (M) calculation
method (Dividend is calculated dai'y based upon daily-accrued
income less expenses, for the number of Shares outstanding on
that day. A cumulative monthly dividend is distributed to
Shareholders monthly based upon the number of Shares held and
the number of days for which they were held during the period.
A4 = 'A' share class which follows Distributing (A) calculation
(Dividend is calculated annually based upon income accrued during
the dividend period less expenses The dividend is distribded to
Shareholders annual'y based upon the number of Shares held at
the end of the annual period
A4 DS = A share class which follows Distributmg (A) calculat on
and seeks UK D stributor Stat&
Asian Dragon142 USD
Asian Oxgon A2 EUR
Asian DTagon A2 GBP
A s h Dragon B2 USD
Asian Vagon E2 EUR
Asian Dragon 82 GBP
Asian Dragon C2 USD
Asian Dragon C2 EUR
Asian DragonC2 GBP
Asian Dragon E2 USD
Asian Dragon€2 EUR
Asian Dragon E2 GBP
Asian DragonA4 DS GPB
Asian Tiger Bond A1 USD
Asizp Tiger Bond A2 US0
Asian Tiger Bond A3 USD
AriaE Tiger Bond B1 USD
Asian Tiger Bond B: USD
Asian Tiger Bond C l USD
Asian Tiger Bond C2 USD
Asian Tiger Bond E2 USD
US0
USD
USD
tiSD
USD
US0
EUR
GBP
USD
EUR
!JSD
GBF
USD
US0
US0
USD
US0
USD
EUR
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
GBP
US0
EUR
GBP
GBD
USD
USD
USD
USD
USD
USD
US0
USD
Non-Distributing
Non-Distributing
Non-Distributing
Nan-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Nom-Dlstriboting
Non-Distributing
hion-Distributing
Nun-Distributing
Distributing (A)
Distributing ID)
Non-Distributing
Distributing(M)
Distributing(D)
Non-Distribrrting
Distributing(D)
Non-Distributing
Non-Disvibutirg
Conservative Allocation (Euro) A1 EUR
ConservativeAlbcation (Euro) A2 EUR
ConservativeAllocat!on (Exo) A3 EUR
ConservativeAllocation (Euro)61 EUR
Conservauve Alfocatlon (Euro) BZ EUR
tonsemativeAltocation (Euro)C1 EUR
ConservativeAllocation (Euro) C2 EUR
ConservativeAl1ocat;on (Euro)E2 EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Distributing (D)
Non-Distributing
Cistributing (M)
DisTributing(0)
Non-Distributing
Distributing(D)
Ncn-Distibuting
Non-Distributmg
ConservativeAllocation (US Dollar) A1 USD US0
ConservativeAllocation (US Dollar) A2 US0
US0
ConservativeAllocation (US Dollar) A3 USE
us0
USD
Consewative Allocation (US Dollar) E1 US0
US0
Consewative Allocation(US Dollar) BZ USD
conservativeAllocation (US Dollar) Cl USC
US0
conservativeAllocation (US Dollar) C2 US0
US0
ConservativeAllocation(US Dollar) E2 USD
USD
USD
USD
USC
USD
U5D
US0
US0
USD
Distributing (0)
Non-Distributing
Distributing (M)
Dis?ributing(0)
Non-Distributing
Distributing (D)
Non-Distributing
Ncn-Distributing
Continental European Growth A2 EUR
Continental European Growh 82 EUR
Continental European Growth E2 EUR
Continental European Growth C2 EUR
Continental European Growth A4 DS GBP
EUR
EUR
EUR
EUR
EUR
EUR
GEP
Non-Distributing
Non-Distributing
Non-Dist:ibuting
Non-Distributing
Dtstributing(A)
Corporate Bond Fund (Euro)A1 EUR
CorporateBond Fund (Euro)A2 EUR
CorporateBondFund (Euro) A3 EUR
CorporateBondFund (Euro) 81 EUR
CorporateBond Fund (Euro)82 EUR
CorporateBondFund (Euro) C 1 EUR
CorporateBond Fund (Euro)C2 EUR
CorporateBond Fund (Euro)E2 EUR
"(until 31 July 2006 when the fund will be
renamedEuro CorporateBond Fund"
EUR
EUR
EUR
EUR
EUR
EUR
EU9
EUR
EUR
EUR
EM
EUR
EUR
Oirtributing (D)
Non-Distributing
Non-Distributing(MI
Distributing (0)
Nan-Distributing
Distributing(0)
Non-Distributing
EUR
EUR
Non-Distributing
EmergingEurope A2 EUR
Emerging Europe A2 US0
Emerging Europe BZ Ed9
Emerging Europe B2 L1SD
Emerging Europe C2 EUR
Emerging Europe C2 US0
Emerging Europe E2 EUR
Emerging Europe E2 USD
EmergingEurope X2 EUA
EmergingEurope XZ USD
Emerging Europe A4 DS GBP
EUR
EUR
EUR
EUR
EUR
EUR
US0
EUR
USD
EUR
USD
EUR
USD
Emerging Markets Bond At USD
Emerging Markets Bond A I EUR
Emerging Markets Bond A2 USD
Emefging Markets Bond A2 EUR
Emerging Markets Bond A3 USD
Emerging Markets Bond A3 EUR
Emerging Markets Bord B1 USD
Emergng Markets Bond E1 EUR
Emergicg Markex Bond B2 USD
EmergmgMarkets Bond B2 EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
GBP
Non-Distributing
Non-Distributing
Nan-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributmg
Non-Distributing
Distributing (A)
USD
USD
USD
USD
USD
US0
USD
USD
USD
USD
USD
EUR
USD
EUR
USD
EUR
USD
EUR
US0
EUR
Distributing (D)
Distributing (0)
Non-Distributing
Non-Distributing
Non-Distributing(Mi
Non-Distributing (M)
Dislributing(D)
Dirtributing(D)
Mon-Distributing
Non-Distributing
EUR
EUR
EUR
Appendix F
US0
EUR
EUR
USD
EUR
Non-Distributing
Distributing(D)
Non-Dis:ribu:;ng
Non-Distribu!ing
Non-Distributing
Lor-Distributing
USD
EUR
US0
EUR
USD
EUR
USD
EUR
Non-Distributing
Non-Dvstributing
Non-Dis!ribu!ing
Non-Distribdting
hon-Distriouting
Non-Distributing
hon-Distributing
Non-Distributing
EUR
USD
EUR
USD
Distributing (D)
Distributing(D)
Non.Distributing
Non-Distributing
Distributing(MI
Distributing(U)
DistribGting(3)
Distribu!ing (D)
Non-Distributing
Nos-Distributing
0:stributing (D)
Distributing !D)
Non-Distributing
Non-DisYibuting
Non-Disirlbuting
Non-Distributing
Emerging MarketsBond C1 USD
Emerging Markets Bond C1 EUR
Emerging Markets BondCZ USD
Emerging Markets Borld C2 EUR
Emerging MarketsBond E2 US0
Emerging Markets Bond E2 EUR
US0
USD
USD
US0
USD
USD
Emerging Markets A2 USD
Emerging Varken A2 EUR
Emerging Markets B2 USD
Emerging Markets 82 EUR
Emerging Markets C2 tiSG
Emerging MarketsC2 EUR
Emerging MarketsE2 U5D
Ernerging Markets EL EUR
US0
US0
USD
Euro Bond A1 EUR
Euro BondA1 USD
EumBond A2 EUR
Euro BondA2 USD
Euro BondA3 EUR
Euro BondA3 USD
Euro Bond 51 EUR
Euro Bond B1 USD
Euro Bond E2 EUR
Euro Bond B2 USD
Euro Bond C1 EUR
Euro Bond C1 USD
Euro BondC2 EUR
Euro Bond C2 USD
EuroBond E2 EUR
EuroBond E l USE
EUR
EUR
EUR
EUR
EUR
EUR
EUR
E 3
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
EUR
USD
EUR
USD
Euro Corporate Bond Fund A1 EUR
Euro CorporateBond Fund A2 EUR
Euro CorporateBond Fund A3 EUR
Euro CorporateBond Fund 81 EUR
Euro CorporateBondFund BZ EUR
Euro CorporateBond Fund C 1 EUR
Euro Corpoate Bond Fund C2 EUR
Euro CorporateBond Fund E2 EUR
"(from 31 July 2006 wbeq the fund changes its
name from CorporateBondFund(Euro)"
EUR
EUR
EUR
EUR
EUR
EUR
Euro-Markets A4 EUR
EumMarkets A2 EUR
Euro-MarketsA2 USD
Euro-MarkebB2 EUR
Euro-MarketsB2 US0
Euro-MarketsC2 EU4
Euro-Markets E2 EUR
Euro-MarketsE2 LSD
Euro Reserve A2 EUR
Euro ReserveBZ EUil
Euro Reserve C2 EUR
Euro ReserveE2 EUR
USD
iiSC
USD
USD
USD
ELR
EUR
EL12
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUT(
EUR
EUR
EUR
EUR
USD
EUR
USD
EUR
US0
EUR
USD
EUR
EUR
EUR
EUR
EUR
EUR
USD
EUR
USD
EUR
EUR
US0
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Distributing ( 0 )
Non-Dis?ribu:ing
Non-Dislributing(M)
Distributing(D)
tion-Distributing
Distributing ( 0 )
Non-Distributlng
Non-Distributing
Distributing (A)
Non-Distributing
Non-Distributing
Noo-Distributing
Fionhtributing
Non-Distributing
Non-Distributlng
Non-Distribu:tng
Non-Distributing
Non-Distributipg
Non-Distribu',ing
Nonhtributing
Non-Distributing
Non-Distributing
Non-Distribbtlng
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
NowDistributing
European A2 EUR
European A2 USD
European B2 EUR
European 82 US0
EuropeanC2 EUR
Europeai C2 1150
European E2 EUR
European E2 USD
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
European Growth A2 EUR
European Growth A2 USD
European Growth B2 EiJR
EuropeaqGrowtn BZ USD
European Growth C2 EUR
European Growth C2 US0
EuropeanGrowth E2 EUR
European Growth E2 USD
EVR
European Opportunities A2 EUR
European OpportunitiesA2 LSD
European Opportunities 82 EUR
European Opportunities B2 USD
European OpponunitiesC2 EUR
European Opportunities C2 USD
European Opportunities E2 EUR
Eumpean Opportunities E2 USD
EUR
EUR
EUR
EUR
FUR
EUR
EUR
EUR
EUR
USD
EUR
EuropeanValue A4 EUR
EuropeanValue A2 EUR
EuropeanValue A2 G9P
EuropeanValue A2 U5D
EumpeasValue E2 EUR
European Value B2 GBP
European Value 82 LiSD
European Value C2 EUR
EUrOpeanValleC2 GBP
European VdJe CZ USD
EuropearlValue E2 EUR
European Value EZ GB?
EuropeanValue E2 US0
European Value A4 DS GEP
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUA
EUR
EUR
EUR
GBP
USD
EUR
GBP
Distributing (A)
Nun-Distributing
Non-Dktributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distribbting
Non-Distributing
Distributing (A)
Global Allocation A2 USD
GlobalAllocation A2 EUR
GlobalAllocation B2 USD
GlobalAllocation B2 EVR
G!obal Allocatiov CZ USD
GlobalAllocation C2 EUR
GlobalAllOCdtiOnE2 US0
GlobalAllocation E2 EUR
Global Allocation HedgedA2 EUR
Global Allocation HedgedA2 EUR
G!obai Allocation Hedged A4 EUR
GlobalAllocation HedgedA2 GBP
GlobalAllocation HedgedB2 EUR
GlobalAllocation Hedged C2 EUR
G'oba. Allocation Hedged E2 EUR
USD
USD
USD
EUR
Non-Distributing
USD
US0
USD
US0
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
US0
EUR
USD
E!JR
US0
EUR
US0
EUR
USD
EUR
USD
EUR
USD
EUR
USD
USD
EUR
US0
EUR
USD
GBP
USD
EUR
GEP
USD
EUR
GBP
USD
USD
us;)
EUR
USD
USD
USD
US0
USD
USD
USD
USD
USD
USD
EUR
EUR
EUR
EUR
GBP
EUR
EUR
EU4
Nan-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Nan-Distributing
Non-Drjtributlng
Non-Distributing
Non-Distributing
Non-Distriburing
Non-Distributing
Non-Distributing
Non-Dbtributing
Nom-Distributing
Non-Dtstributing
Non-Distributing
Non-Distribuung
Non-Distributing
NomDistributing
Non-Distributing
Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Appendix F
I
Global Bond Fund (Euro) A1 EUR
Global Bond Fund(EgroiA2 EUR
GlobalBond F u ~ d(Euro) A3 EUR
GlobalBond Fuco (Euro) 81 ECR
GlobalBond Fund (Em) 82 EUR
GlobalBond Fund (Euro) C1 EUR
GlobalBond Furd (Euro) C2 EUR
GlobalBond Fmd(Eum) E2 FUR
EUR
EUR
EUR
EUR
Global Bond Fund (US Dollar) A1 USD
GlobalBond Fund(US Dollar)A2 USD
GlobalBond Fund (US Dollar)A3 USD
Global Bord Fund (US Dollar)B1 USD
GlobalBopd Fund (US Dollar)B2 USD
GlobalBond Fund (US Dollar)C? USD
Global Bond FuKd (US Dollar! C2 USD
Global BoPd Fund (US Dollar)C3 USD
Global Bord Fund (US Dollar)E2 USD
USD
USD
USD
USD
USD
USD
USD
Global Dynamic Equity A2 USD
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
USD
USD
USD
ti5D
Distributing (D)
Non-Distributmg
Distribuiing (M)
Distributlng (D)
Non-Distributing
Distributing (D)
Non-Distributing
Distributing (MI
Non-Distributing
Global DynamicEquityA2 EUR
Global DynamicEquity 62 USD
Global DynamicEquity 82 EUR
Global Dynamic Equity C2 USD
Global DynamicEquity C2 EUR
Global DynamicEquity E2 USD
Global DynamicEquity E2 EUR
USD
USD
US0
uSD
USD
USD
US0
USD
USD
EUR
U5D
EUR
USD
EUR
USD
EUR
Non-Distributing
Non-Distributing
Non-Distributing
tion-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Global Equity Core Fund A2 USD
GlobalEquity Core FundAz EUR
GlobalEquity Core Fbnd62 USD
GlobalEquity Core FundB2 EUR
GlobalEquity Core FundC 2 USD
GlobalEquity Core Fmd C2 EUR
GlobalEquity Core FundE2 USD
GlobalEquity Core FundE2 EUR
GlobalEquity Core FundA4 DS GBP
USD
USD
USD
USD
US0
USD
US0
USD
USD
US0
EUR
US0
EUR
USD
EUR
US0
EUR
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
GBP
Distributing (A)
Global Equity Diversified Fund A4 USD
Global Equi?yDiversified Fund A2 USD
Global Equity Diversified FundA2 EUR
Global Equity Diversified Fund 82 USG
Global Equity Diversified Fund 82 ECR
Global Equity Diversified FundC2 LIS3
Global Equity Diversified FundC2 E 3
Global Equity ElversifiedFundE2 MD
Global EquityDsverrifiedFundE2 EJR
USD
USD
USD
EUR
USD
EUR
USD
EUR
USD
EUR
Oistributing (A)
Non-Datribut,ng
Non-Distributing
Nan-Distributing
Non-Distributing
Non-Distributing
Non-Distribuang
Lon-Distributing
Non-Distributing
Global Fundamental Value A2 USD
USD
Global Fundamental Value A2 EUR
Global FundamentalValue 82 USD
Global FundamentalValue 82 EUR
Global FundamentalValue C2 USD
Global FundamentalValue C2 EUR
Global FundamentalValue E2 USD
GlobalFundamentalValue E2 EUR
GlobalFundamentalValue X2 M D
USE
USD
USD
USD
USD
USD
USD
USD
USD
EUR
USD
EUR
USD
EUR
US3
EUR
USD
NonDirtributing
Non-Distributing
Non-Distribirting
Non-Distributing
Nan-0:stributing
Non-Distributing
Nun-Distrhuting
Non-Dis?ributing
Non-Distributing
US0
US0
USD
USD
US0
USD
USD
USD
USD
USD
US0
Distributing (0)
Non-DGr buting
Distributicg (M)
Distributing(D)
Non-Distributing
Distributing(0)
Non-Distributing
Non-Dis:ributing
US3
USD
US9
Non-Distributing
Non-3!stributtng
Global High Yield Bond (Euro) A1 EUR
Global High Yield Bond (Euro)Ai USD
GlobalHigh Yiela Bond ( E m ) A2 EdR
Global High Yield Bond(Euro) A2 US0
Global High Yield Bond(Euro) A3 EUR
Global High Yiela Jond (Euro)A3 USD
Global High Yield Bond (Euro) B i EUR
GlobalHigh Yield Bond (Euro) E 1 USD
GlobalHighYield Bond (Em) 62 EUR
GlobalHGh Yield Bond (Euro) 82 USD
GlobalHigh Yiela Bond (Euro) C1 EUR
Global High Yield Bond (Euro) C i USD
Global High Yielo aond (EurojC2 EUR
GlobalHighYield Bond (Euro) CZ USD
GlobalHgh Yield Bond (Euro)C3 EUR
Global High Yield Bond (Euro) E2 EUR
Global HighYield Bond (Euro) E2 USD
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Global Opportunities A2 USD
Global OpportunitteS A2 EUR
GlobalOpportunities B2 US0
Global Opportunities82 EUR
GlobalOpportunitiesC2 USD
Global OpportunitiesC2 EUR
GlobalOpportunitiesE2 USD
Global OpportunitiesE2 EUR
USD
USD
USD
USD
USD
USD
USD
USD
Global SmallCapA2 USD
GlobalSmallcap A2 EUR
Global SmailCap E2 USD
Global SmallCap E2 EUR
GlobalSmallcap C2 USD
GloDai Smallcap C2 EUR
GlobalSmallCap E2 USD
GlobalSmallCap E2 EUR
USD
USD
USD
US0
U5D
US0
US0
US0
EUR
US0
EUR
US0
EUR
US0
EUR
USD
EUR
US0
EUR
US0
EUR
EUR
USD
Distributing (D)
Distributing(0)
Non-Distributtng
Non-Distibuting
Distributing(MI
Distributing(M)
Distributing(D)
Distributing(0)
Non-Distributing
Non-Distributing
Distributing (0)
Distributing (0)
NomDistributing
Non-Distributing
Distributing (M)
Non-Distrrbuting
Non-Distrrbutmg
USD
EUR
US0
EUR
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distrrbuting
Non-Distributing
US0
USD
EUR
USD
EU3
USD
EUR
US0
EUR
Non-Distributing
Nan-Distributing
No&Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Japan A2 USD
Japan A2 EUR
Japan B2 GSD
Japan 82 EUR
Japan C2 USD
Japan C 2 EUR
Japan E2 US0
Japan E2 EUR
Yen
Yen
Yen
Yen
Yen
Yen
Yen
Yen
USD
EUR
US0
EUR
USD
EUR
US0
EUR
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Nan-Distributing
Non-Distributing
Non-Distributing
Japan Opportunities A2 USD
JapanOpportunitiesA2 EUR
Japan OppoRunities 82 USD
Japan Opportunities32 Eli2
Japan OpportunitiesC2 USD
Japan OpportunitiesC2 EUR
Japan OpportunitiesE2 USD
JapanOpportunitiesE2 EUR
Japan OpportunitiesX2 USD
JapanCpportunitiesA4 DS GBP
Yen
Yen
Yen
Yen
Yen
Yen
USD
EUR
US0
EUR
USD
EJR
US0
EUR
US0
Yen
GBP
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributmg
Distributing(A)
JapanValue A2 USD
Japan Value A2 EUR
Yen
Yen
US0
EUR
Non-Distributing
Non-Distributing
USD
EJR
US0
ELIR
Non-Distributing
Yen
Yen
Yen
Appendix F
Japan Value BZ US0
Japan Value 82 ELR
Japan Value C2 USD
Japan Value C2 EUR
Yen
Japan Value E2 USD
Yen
Yen
Yen
Japan Value E2 EUR
Japan Value A4 DS GBP
Yen
Yt n
Yen
USD
EUR
USD
EUR
US0
EUR
GBP
Latin American A2 USD
Latin American A2 GBP
LatinAmerican A2 EUR
Latin American E2 US0
Latin American B2 GBP
Latin American B2 EUR
Latin American CZ USD
Latin American C2 GSP
Latin American C2 EUR
Latin American E2 USD
Latin American E2 GBP
CziinAmerican E2 EUR
Latin American A4 OS G9P
USD
USD
VSD
liSD
USD
b5D
USD
USD
USD
USE
US0
USD
USD
GBP
EVR
USD
GBP
EUR
USD
GBP
EUR
USD
GBP
lis0
GBP
New Energy A2 USD
New Ecergy A2 EUR
New Energy E2 USD
New Energy BZ ELiR
New EnergyC2 USD
New EnergyC2 EUR
New EnergyE2 USD
New Energy E2 EUR
New EnergyA4 DS GBP
USD
USD
USD
USD
US0
US0
USD
EUR
USD
Pacific Equity A2 USD
Pacific EquityA2 GBP
Pac:fic Equity A2 EUR
Pacif:c Equity 82 US0
Pacific Equity B2 GBP
Pacific Equity 82 EUR
Pacific Equity C2 USD
Pacific Equity C2 CBP
Pacific EquityCZ EJR
Pacific Equity E2 UjD
Pacific Equity E2 GBP
Pacific E w t y E2 EUR
USD
USD
US0
UjD
US0
USD
USD
USD
US0
USD
LIS0
Short DurationBond A1 EUR
EUR
EU?
Short Duration BondA2 EUR
us0
USD
USD
ilSD
EUR
EUR
USD
EUR
USD
EUR
GBP
USD
GBP
EUR
USD
GBP
EUR
US0
GBP
EUR
USD
GB'
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Snort Duration BondA3 EUR
Short Duration Bond B1 EUR
Short Duration Bond82 EUR
Short Duration Bond C1 EUR
Short Duration Bond C2 EUR
Short Duration Bond E2 EUR
EUR
EUR
EUR
EUR
EUR
EUR
Sterling Reserve A2 GBP
SterlingReserve 82 GBP
Sterling ReserveC2 GBP
SterlingReseive E2 GBP
SterlingReserve A3 DS GBP
GBP
GBP
GBP
GBP
GBP
GBP
EL9
EUR
GBP
GBP
GBP
GBP
Non-Distributing
Non-Disiributing
Non-Distr:buting
Non-Distributing
Non-Distributing
Non-Distributing
Distributing(A)
Nan-Distributing
Non-Ds'ributing
Non-Dis%bu:ing
Non-Disvibdting
Non-Distributivg
Non-Distributing
Non-Distributing
kon-Distributing
NmDistributing
Non-Distributing
Non-Dstributing
Non-Distrjbwng
Distributing(A)
Non-Distributing
NW-DiSWbUting
kon-Distributing
NovDistributing
Non-Distributing
Non-Distriou!ing
Nonhtributing
Non-Distributing
Dmbuting (AI
Nan-Distributing
Non-Datributing
Non-Dtstributing
Non-Distrnbuting
Non-Distributing
NowDistributing
Non-Distributing
Non-Distributing
Non-Disuibuting
Non-Distr,butng
Non-3istribui:rg
Non-Distributing
Distributing (0)
Non-Distributing
Distributing(MI
Distributivg (0)
Non.Distr:but:ng
Distributing (0)
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
lion-Distributing
Distributing(M)
Strategic Allocation (Euro) A2 EUR
StrategicAllota:ion (Euro) B2 EUR
StrategicAllocation (Euro) C2 EUR
StrategicAllocation (Euro) E2 EUR
EU R
EUR
EUR
EUR
E UR
EUR
EUF
EUR
Strategic Allocation (US Dollar) A2 USD
StrategicAllocation (US Dollar) BZ USD
StrategicAllocation (US Dollar) C2 USD
StrategicAllocation (US Dollar)E2 USD
USD
USD
US0
USD
USD
United Kingdom A2 GEP
United KingdomA2 E29
Un.ted Kirgoom A2 USD
United Kirgoom BZ GBP
United Kingoom82 EUR
United KingdomE2 US0
United KingdomC2 GBP
United KingdomC2 EUR
United KingdomC2 US3
United KingdomE2 GB?
United Kirgdom E2 EUR
United Kirgdom E2 USD
United KingdomA4 OS GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
EUR
US0
GBP
EUR
US0
GBP
EUR
USD
GBP
EUR
US Basic Value A4 USD
US Basic Value A4 EdR
US Basic Value AZ USD
US Basic Value A2 GBP
US Basic Value A2 EUR
US Basic Value BZ USD
US BasicValueBZ GBP
US Basic Value E2 E i l R
US Basic Value C2 USD
US Basic Value C2 GBP
US Basic Value C2 €US
US Basic Value E2 USD
US Basic Valde E2 GBP
USBasic Value E2 EUR
US BasicValueX2 US0
US Basic Value A4 OS GBP
US Basic Value HedgedA2 EUR
US Basic Velue HedgedB2 EUR
US Basic Value Hedged C2 EUR
USBasic Value HedgedE2 EUR
USD
USD
USD
USD
USD
USD
USD
USD
USD
US0
USD
USD
USD
USD
USD
USD
USD
USD
USD
US Dollar Core BondA1 USD
US Dollar Core Bond A2 EUR
US DollarCore Bond E1 USD
US DollarCore Bond02 USD
US Dollar Core BondCl USD
US Dollar Core BondCZ USD
US Dollar Core Bond C3 USD
US Dc:lar Core Bond E2 USD
US DollarCo'e BondX2 USD
US0
USD
US0
USD
USD
USD
USD
US0
USD
USD
USD
USD
USD
EUR
USD
US0
USD
USD
USD
USD
USD
Distributing (0)
Non-Distribbting
Non-Distributing
Distributing(M)
Distributing(D)
Non.Distributing
Distrtbuting(D)
Non-Dlstributing
Distributing (M)
Non-Distributing
Non-Distributing
US Dollar High Yield Bond A1 USD
US Dollar HigCl Yield Bond A2 USD
USD
USD
USD
USD
Distributing (D)
Non-Distributing
GBP
GBP
GEP
GEP
GBP
GBP
GBP
us3
US0
US0
USD
US0
GBP
USD
EUR
USD
GBP
EUR
US0
GBP
EUR
USD
GBP
EUR
USD
GBP
EUR
USD
GBP
EUR
EUR
EUR
EUR
USD
Non-Distributing
Non-Distributing
Non-Distribu!ing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Datributing
Non-Distributing
Non-Distributing
Non-Distribbting
Non-Dlstributing
Non-Dktributing
Non-Dmibuting
Non-Distributing
Non-Distributiig
Non-Distributing
Distributing (A)
Distributing (A)
Distributing (A)
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Dirtributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Dist:ibl;ting
Distributing (A)
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Appendix F
US Dollar High Yield aond A3 USD
US Doilar eigh Yield Bosd B t USD
US Dollar hgh Yield acnd B2 USD
US Dollar High Yield Bond :1 USD
US Dollar HighYield Bonu C2 USD
US Dol!arHigh Yield Eond C3 USD
US Doliar High Yield Bond E2 USD
USD
USD
USO
USD
USD
USD
LiSD
USD
USD
USD
USD
USD
USD
Distributing (M)
Distributing (3)
Non-D:stribu;,ng
Distributing (W
Non-Distributing
Distributing (M)
Non-Distributing
USDollar Reserve A2 USD
US Dol'ar Reserve 32 USD
US D o hReserve C2 USD
US Dol!ar ReserveE2 USD
US0
USD
USD
USD
USD
USD
Non-Distributing
Non-Distributing
Non-0.stributing
Non-0:rtribut-ng
USFlexible Equity A2 USD
lis FlexibleEquityA2 EUR
US Flexible Equity 82 USD
US Flexible Equity E2 EUR
US FlexibleEqu:ty C2 US0
ti5 FlexibleEquity C2 EUR
US FlexibleEquity E2 USD
US FlexibleEquity E l EUR
US FlexibleEqcQ A4 OS GBP
1;s FlexibleEquity HedgedA2 EUR
US FlexibleEquity HedgedC2 EUR
US FlexibleEquity HedgedE2 EUR
USD
US0
USD
USD
US0
USD
US0
USD
US0
USD
USD
USD
USD
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
ivon-Distributing
Non-Distributing
Non-Distributing
Dsstributing(A)
Non-Distributing
Non-Distr!buting
hior-Distr.buting
US FocusedValue A2 US0
US FocusedVahe A2 EUR
US FocusedValue 82 USD
US Focused Value 92 €US
US FocusedVaiue C2 USD
US FocusedValue C2 EUR
US FocusedValue E2 USD
US FocusedValue E2 EUR
US FocusedValue A4 DS GBP
US FocusedValue Hedged A2 EUR
IJS FocusedValue Hedged B2 EUR
US FocusedValue Hedged C2 EUR
US Focured Value Hedged E2 E i R
USD
USD
USD
US0
EUR
US0
EUR
USD
EUR
USD
EUR
GBP
EUR
EUR
US0
tiSD
USD
US0
USD
US0
USD
US0
USD
USD
USD
USD
USD
EUR
USD
EUR
US0
EUR
US0
EUR
GEP
EUR
EUR
EUR
EUR
EUR
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distribu:ir;g
Distributing (A)
Non-Distributing
Non-DistribuMg
Nan-Distribu?ing
Non-Distributing
US Govt Mortgage At US0
US Govt Mortgage A2 USE
US Govt Mortgage A3 USD
US Govt Mortgage 31 LSD
US Govt Mortgage B2 LSD
US Govt Mortgage C1 USD
US Govt Mortgage E2 USD
US Govt Mortgage X2 US0
USD
USD
USD
USD
USD
USD
USD
bS3
USD
USD
USD
ED
USD
USD
USD
USD
Distributing (0)
Mor;-Distributing
Distributing (M)
Distributing (D)
Non-Dis:ributing
Distributicg (D)
Non-Distributing
Distribu:ing (M)
Non-Distributing
Non-Distributing
US Growth A2 USD
US Grow!h A2 EUR
US Growth E2 USD
US Growth B2 EUR
US Growth C 2 US0
US Growth E2 EUR
US Growh E2 USD
USD
USD
EUR
USD
EUR
USD
EUR
USD
Non-Distributing
Non-Distributing
Non-Distributing
Nor-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
USD
USD
USD
USD
USD
USD
68 Fserrill Lynch International Inves?rrentFunds
USD
US9
USD
us0
US Growth E2 EUR
US Growth X2 USD
us3
USD
EJil
US0
USD
USD
USD
USD
EUil
US Opportunities A2 USD
US Opportunities82 USD
US OpponunitiesC2 USD
US OpportunitiesE2 USD
US OpportunitiesA2 EUR
US Opponunities92 EUR
US OpportunitiesC2 EUR
US OpportunitiesE2 EUR
USD
us0
us0
US0
US3
USD
USD
ELiR
USSmall CapValue A2 USD
US Small Cap Value A2 EUR
US Small Cap Value 82 USD
US SmallCapValue E2 EUR
US Small Cap Value C2 USD
US Small Cap Value C2 EUR
US Small Cap Value E2 US0
US Small Cap Value E2 EUR
USD
us3
us0
US0
USD
US0
USD
USD
USD
USD Low DurationBond A1 USD
USD tow DurationBondA1 EUR
USD tow DurationBondA2 USD
USD Low DurationBondA2 EUR
USD Low Dufation BondA3 USD
US0 tow DurationBond A3 EUR
USD low DurationBond 81 US0
USD Low DurationBond 81 EUR
USD Low DurationEond E2 USD
USD low DurationBond 82 fUR
USD low DurationBondC1 US0
USD Low OcrationBondC1 EUR
USG tow Ourabonflond E2 USD
USE tow Duraton BondC2 EUR
USD tow DurationBond E2 USD
USD Low Duration Bond E2 EUR
USD
USD
USD
US0
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
World Bond Fund A1 USD
World Bond Fund 81 US0
World BondFundC 1 USD
World BondFundE2 USD
USD
USD
U5O
us0
USD
us0
World Energy A2 USD
World EnergyA2 EUR
World EnergyB2 USD
Worid Energy82 EUR
World EnergyC2 USD
World EnergyC2 EUR
World Energy E2 iiSD
:R
World EnergyE2 U
World EnergyX2USD
World EnergyX2 EUR
World EnergyA4 DS GBP
USD
USD
USD
USD
050
USD
USD
USD
USD
USD
USD
USD
us3
us3
EUR
EUR
EUR
USD
EU9
USD
EUR
USD
EUR
EliR
USD
EUR
USD
EUR
USD
EUR
USD
EUR
USD
EUR
US0
EUR
us0
EUR
USD
USD
US0
USD
USD
EUR
USD
EUR
USD
EUR
USD
EUR
US0
EUR
GEP
Non-Distributing
Norl-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distnbuting
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distfibuting
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Nun-Distributing
Distributing (D)
Distribdting(0)
Non-Distributmg
Non-Distributing
Distributing(M)
Distributing(M)
Distribdting(0)
Distributing(0)
Non-Distributing
Non-Distributing
Distributing(0)
Distributing(0)
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Distributing (D)
Non-Distributing
Non-Dirtributtng
Distributing (0)
Disiributing (0)
Non-Distributing
Non-Distributing
Non-Distributing
Non-Dist:ibuting
Non-Distributing
Non-Distributing
Non.Distributing
Non-Distributing
Non.Distributing
Non-Distributing
Non-Distributing
Distributing(A)
Appendix F
USD
USD
VSD
US0
USD
USD
USD
USD
USD
EUR
USD
EUR
USD
EUR
USD
EUR
Nan-Distributing
Non-Distributing
Non-Distributing
Nor: Distcbuting
Non-Distribdting
Non-Distributirg
Non-Dztributing
Non-Dis:ributing
World Gold A2 USD
World Gold AZ EUR
World Gold B2 USD
World Gold B2 EUR
World Gold C2 USD
World Gold C2 EU7
World Gold E2 USD
World Gold E2 EUR
World Gold X2 EUR
USD
USD
USD
USD
US0
USD
USD
USD
US0
EUR
USD
EUR
USD
EUR
US0
EUR
EUR
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distrib~iing
Non-Distribukng
Non-Datributing
Non-Distributing
Non-Distrlbuting
World HealthscienceA2 USD
World HealthscienceA2 EUR
World Healthscience 62 USD
World Healthscience B2 EUR
World Healthscience CZ USD
World Healthscience C2 EUR
Wor'.dHealthscience E2 USD
World Healthscience E2 EUR
USD
USD
USD
US0
USD
USD
USD
US0
US0
EUR
USD
EUR
USD
EUR
USD
EUR
Non-Distributing
World Income A1 USD
Worid income A1 EUR
World Income A2 USD
World Income A2 EUR
World IncomeA3 US0
World income A3 EUR
World lncome B1 USD
World Income 61 EUR
Worldlncome 02 LSD
us0
US0
US0
USD
USD
USD
US0
USD
VSD
US0
USD
USD
USD
USD
US0
USD
USD
US0
EUR
US0
Distributing (0)
Distributing(0)
Non-Distributing
Non-Distributing
Distributing(M)
Dinributing (M)
Distributing(0)
Distribcting(D)
Non-Distributing
Non-Distributing
Distributing(Dl
Distributing(D)
Non-Distributing
Non-Distributng
Non-Distributing
Non-Distributing
Distributing(MI
World Finantials A2 USD
World F:nancials A2 EUR
World Financials82 USD
World Financ als 52 EUR
World FinancialsC2 USD
World Financials C2 EUR
World FinancialsE2 US0
World Financ,als E2 EUR
World Income 02 EUR
World IncomeC 1 USD
World Income C1 EUR
World Income C2 US0
World Income C2 EUR
World Income E2 USD
World Income E2 EUR
World Income 13 USD
World Mining A2 USD
World Mining A2 EUR
World Mining 62 UjD
World Mining 82 EUR
World Mimng C2 US0
World Mining C2 EUR
World Mining E USD
World Micing E EUR
World Mining X US0
World Mining A4 05 GBP
US0
EUR
USD
EUR
US0
EUR
USD
EUR
USD
EUR
US0
EUR
USD
EUR
US3
USD
USD
US0
EUR
US0
US0
USD
USD
us0
USD
US0
USD
US0
EUR
USD
EUR
US0
EUR
USD
GR?
Warld Technology A2 USD
WorldTechnology A2 EUR
World Technology A2 GBP
World Technology B2 USD
World Techrology B2 GBP
World TechnologyB2 EUR
World TechnologyC2 US0
WorldTechnology C2 GBP
WorldTechnology C2 EUR
World Techrology E2 USD
World Technology E2 GBP
WorldTechnology E2 EUR
US0
USD
USD
EUR
USD
GBP
USD
USD
USD
USD
USD
USD
USD
US0
USD
USD
USD
C0P
GBP
EUR
EUR
USD
GBP
EUR
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distribcting
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Dismbuting
Non-Dismbuting
Fion-Distributing
Non-Distributing
Non-Dis3ibuting
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Distributing
Non-Dimbuting
Non-Distriburing
Non-D!stributing
Non-Distributing
Non-Distr1bu:ing
Distributing(A)
Summary of Subscription Procedure and Payment Instructions
1.
Application Form
For initial sLbscriptions for Shares you must complete t'le application
form wkch may be obtained from the Transfer Agent or the Itwestor
Service Certre ard t i e form must be signed by all joint appkants.
Subseqdent subscriptions may be made in writirg or by fax or
telephoie, stating your registratior details and the amount to be
irvested If yobr appiicatlor is being subnitted by your professional
adviser, section 5 of the applica:ion form should be ccmpleted.
Completed application forms must be sei; to tCle Transfer Agent or
t i e Investor Service Centre.
IF Morgan Chase New York
SWIFT eode cHAsus33
For the account 6f Merrill Ly%h &ves$ment Managers
@ I
Accouht Number 001-1-460185, CHIPS UID 35999 '
ABA Number 02 1000021
Quoting Reference "Name of Fund -,Name of Applichnt"
4
JP Morgan Frankfurt
2.
Money Laundering Prevention
Please read the notes 01: the appiicatior form regarding the
identificat o i documents requ red and ensure that yob provide tnese
&
SWIFT code CHASDEFX, BLZ 501 108 00
For the account of: Merrill Lynch lnvestm
to the Transfer Agenr or :he Investor Service Ceitre togethev w,th
your applicatior form
3.
Payment
Yodr cheque or a copy of your telegraphic transfey iistrurtions
should be supplied wit+ your appkation (see sections 4 to 6 below).
4.
Payment by Telegraphic Transfer
Payment by SWIFT/bank transfer in the relevant currency should be
made to one of the accours opposite The SWIFThank transfer
irstwrtion should contain :he follow ng information
(I) BankName
(11) SWIFT Code or Bank Ideptifier
(111) Account
(iv) Account NLmber
(v) Account Reference - "MLIIF - Fbnd name subscribed into"
(v) By order of [Shareholder namelagent name & Siareholder
numberlagent nunberl
5.
Payment by Cheque
As payment by cheque may delay dealirg until cleared funds have
been received, payment by telegraphic transfer is strongly
recommended. Your cheque, made payabie to "Merrill Lyqch
1nvestmer.t Managers (Channel Islands) Limited" and drawn on a
bank accoJi: in the comtry or countries of the relevant currency
should accompaiy your application.
6.
Foreign Exchange
If you wish to make payment in a currency other thai that in the
Dealing CLrrency (or ore of the Dealing Currencies) of your chosen
Fund (see page 2 of th:s ProspectJs), tbis must be made clear a: tne
tm of application
>
I
I
(formerly 1 1 1 18940)
i
Pay UBSZurich A$?$$,
SWIFT code UBSW H 8 0 A ?''
Account JP M$an London
Account numbei 023000000441290500008
5
For the accodt of Merrilt h c h Investment Managed &
(Channel Islanhs) Ltd
'*
Account Number {IBAN) GB56CHAS60924217'354770
2(formerly 17354770)
of Applicant"
Ref. 'Name of Fun&&rne
f
~
4- f#
umber 40386589
For the accountof Merrill Lynch In&trnent Managers
'"A
4
8
(Channel Islands) Ltd
'!>
Account Number (IBAN) G880CHAS609!4222813401
Pay JP Morgan Hong
SWIFT code CHASHK
~
?%
. Account number 6743197685
(formerly 24466319)
Ref. "Name of Fund JP Morgan Tokyo
FT code CHASJPJT
ount JP Morgan Lo
For the account of Mer
(Channel Islands) Ltd
Account Number (IBAN) GB69CHA 60924222813405
(formerly 22813405)
1
Ref:<Namexof Fund - Name of Applic$t"
8
7G Nerrill Lynch International Investment Funds
c
2"F
>.
PRISMA OW1010 MLllF PROS ENG 0306

Merrill Lynch International Investment Funds

Transcription

Similar documents

Monday 25th July, 2016 Gareth Baxter

Which Future for the Euro?

Tareno AG - Tareno Waterfund

FASHION TRENDS HIGHLIGHTS NEW

108 Marina Terra

Corregidor Day Tour Manila City Tour Baguio Overnight Package

Utalii Hotel Tariffs Non Resident HOTEL LAUNDRY ZAWADI GIFT

Registration Form COFRET ` 10

Winter 2015

fall/winter 2015/16 iconic rings