QUARTERLY REPORT
AUGUST 31, 1999
[GRAPHIC OMITTED]
Mercury
International
Fund OF MERCURY ASSET
MANAGEMENT FUNDS, INC.
----------------
MERCURY
ASSET MANAGEMENT
----------------
<PAGE>
MERCURY MASTER INTERNATIONAL PORTFOLIO
SECTOR REPRESENTATION
As a Percentage of Net Assets as of August 31, 1999
A pie chart depicting portfolio composition according to sector representation
for the quarter ended August 31, 1999.
Services--26.4%
Finance--20.8%
Consumer Goods--17.8%
Capital Equipment--16.3%
Energy--9.3%
Materials--6.0%
Cash Equivalent--2.5%
Multi-Industry--0.9%
GEOGRAPHIC ASSET MIX
As a percentage of Net Assets as of August 31, 1999
A pie chart depicting portfolio composition according to country representation
for the quarter ended August 31, 1999.
Europe--64.8%
Japan--23.4%
Pacific Basin/Asia (Ex Japan & Australia)--5.7%
Australia--2.7%
Cash Equivalent--2.5%
Latin America--0.9%
August 31, 1999 (1) Mercury International Fund
<PAGE>
DEAR SHAREHOLDER
For the quarter ended August 31, 1999, Mercury International Fund's Class I,
Class A, Class B and Class C Shares had total returns of +9.21%, +9.23%, +8.88%
and +8.88%, respectively. The Fund's unmanaged benchmark Morgan Stanley Capital
International Europe, Asia and Far East (MSCI EAFE) Index had a total return of
+7.38% for the same three-month period. (Fund results shown do not reflect sales
charges and would be lower if sales charges were included. Complete performance
information can be found on pages 4 and 5 of this report to shareholders.) Stock
selection contributed positively to the Fund's returns relative to their
respective regions within the benchmark. Our decision to increase our exposure
to Japanese equities toward the end of June also made a positive contribution to
performance, since Japan was one of the best-performing major global equity
markets over this period.
Investment Environment
Typically, sharp movements in US equity share prices quickly lead to volatility
in international stock markets, and the three-month period ended August 31, 1999
was no exception. However, we did see emerging evidence that international
markets could make long-term progress, in spite of uncertainties in the US stock
market.
One of the most prominent events over the August quarter was the strength of the
Japanese equity market. During June, the announcement of unexpected strong first
quarter gross domestic product (GDP) growth acted as a catalyst for the market.
The GDP figures were supported strongly by the public sector, although some
doubt remains about the private sector's ability to sustain any recovery when
public spending lessens later in the year. However, signs that the Japanese
economy is emerging from many years of recession, which bordered on depression,
is undoubtedly good news. Furthermore, real evidence of corporate restructuring
is also emerging.
The August quarter witnessed Japan's first hostile takeover. Cable & Wireless
PLC's bid for IDC was strongly contested by Nippon Telegraph & Telephone
Corporation (NTT). However, it is an encouraging sign that this bid was allowed
to succeed. During August, the announcement that Industrial Bank of Japan
planned to merge with both Fuji Bank and Dai-Ichi Kangyo Bank left us in no
doubt that Japan is changing. If this transaction goes ahead, it will form the
largest bank in the world, with significant scope for cost cutting, which is not
something we normally associate with Japan. It will also send a signal of
approval to corporate Japan that mergers are not only acceptable, but to be
encouraged to build global competitiveness. Undoubtedly, it will act as a
catalyst for copycat mergers in the financial sector.
European markets were disappointing over the early summer as the euro came under
pressure and European economies appeared subdued. A marked change in sentiment
occurred later as evidence of a sustainable economic recovery emerged with
encouraging economic data from both France and Germany. Merger and acquisition
activity continued at an astounding pace with nearly every major industry seeing
some consolidation. The energy, financial, telecommunications, healthcare and
utility sectors were among the major participants.
August 31, 1999 (2) Mercury International Fund
<PAGE>
Portfolio Activity
During the August quarter, Deutsche Bank AG was added to the Portfolio after the
reform of taxation laws in Germany took place. This should now allow the company
to restructure its industrial holdings more efficiently. Furthermore, we
continue to expect additional consolidation within the European banking sector
and believe that there still exists significant scope for corporate activity
within the German banking system. Investor AB, the Swedish investment group, was
also purchased after what we believe to be a significant widening of the
discount between the quoted share price and the underlying value of its assets.
We also added a Swiss specialty chemicals group, Clariant AG, as part of a move
to increase the Portfolio's exposure to cyclicals. With stabilizing prices and
higher industrial demand expected to feed through to stronger earnings in the
second half of the year, we believe the valuation of Clariant remains
attractive.
Our position in Veba AG, the German utility group, was sold as part of a move to
reduce the overall Portfolio's exposure to defensive stocks. We also took some
profits by reducing our positions in the electronics sector, including
Koninklijke (Royal) Philips Electronics NV, Siemens AG and Telefonaktiebolaget
LM Ericsson, as a result of the recent strength in their stock prices. While we
remain confident that in the long term Ericsson should benefit from growth in
demand for wireless infrastructure, concerns over short-term profitability also
prompted us to reduce our position in the stock.
During the August quarter, we increased our exposure to Japanese equities. Early
in the period, we built positions in technology stocks Softbank Corporation and
Trend Micro Incorporated. Softbank is an Internet venture capital firm with a
track record of making very successful Internet investments. The company owns
26% of Yahoo! Inc. in the United States. We expect the company to use its
dominant position in Japan to generate further synergies for the companies in
its investment portfolio. Trend Micro is one of the leading anti-virus companies
in the world. Its new generation of software resides on network servers rather
than on personal computers. This reduces the cost of implementing upgrades to
the software, as the upgrades can be performed remotely. We anticipate a
substantial increase in the company's gross profit margins as a result.
In Japan, we also initiated a holding in Sekisui House, Ltd., as the housing
market is responding to the government-led stimulus to spend. The effect is
particularly strong in expensive houses where Sekisui House is dominant.
Finally, we reduced our position in the telecommunications company, NTT. The
company is coming under more intense regulatory scrutiny and will face severe
pressure to reduce rates as regulators seek to introduce cheap fixed-rate
Internet access in Japan.
Investment Outlook
We remain positive regarding the outlook for international equities and,
therefore, the Portfolio remains fully invested. We believe the economic
recovery in both Europe and Japan will underpin earnings growth for the
foreseeable future. Against this background there also exists the probability of
an even greater degree of corporate activity in both of these regions. Although
the majority of the Portfolio's holdings are in Europe, where we remain very
positive toward the long term, our overweight position relative to the Fund's
August 31, 1999 (3) Mercury International Fund
<PAGE>
benchmark is greater in Japan. We increased our exposure to Japanese equities in
mid-June, and we expect to maintain this position for the balance of the year.
At August 31, 1999, we remained neutral relative to both our peer group of
international funds and the benchmark MSCI EAFE Index in the Pacific region (ex
Japan) and emerging equity markets.
In Conclusion
We thank you for your investment in Mercury International Fund, and we look
forward to serving your investment needs in the months and years ahead.
Sincerely,
/s/ Jeffrey Peek /s/ Charles Prideaux
Jeffrey Peek Charles Prideaux
President Portfolio Manager
September 29, 1999
FUND PERFORMANCE DATA
ABOUT FUND PERFORMANCE
The Fund offers four classes of shares, each with its own sales charge and
expense structure allowing you to invest in the way that best suits your needs.
CLASS I SHARES incur a maximum initial sales charge of 5.25% and bear no ongoing
distribution and account maintenance fees. Class I shares are available only to
eligible investors.
CLASS A SHARES incur a maximum initial sales charge of 5.25% and an account
maintenance fee of 0.25% (but no distribution fee).
CLASS B SHARES are subject to a maximum contingent deferred sales charge of 4%
if redeemed during the first two years, decreasing to 3% for each of the next
two years and decreasing 1% each year thereafter to 0% after the sixth year. In
addition, Class B shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. These shares automatically convert to Class A
shares after approximately 8 years.
CLASS C SHARES are subject to a distribution fee of 0.75% and an account
maintenance fee of 0.25%. In addition, Class C shares may be subject to a 1%
contingent deferred sales charge if redeemed within one year after purchase.
August 31, 1999 (4) Mercury International Fund
<PAGE>
FUND PERFORMANCE DATA (CONCLUDED)
None of the past results shown should be considered a representation of future
performance. Figures shown in the "Recent Performance Results" and "Aggregate
Total Return" tables assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date. Investment return and
principal value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Dividends paid to each class of
shares will vary because of the different levels of account maintenance,
distribution and transfer agency fees applicable to each class, which are
deducted from the income available to be paid to shareholders.
AGGREGATE TOTAL RETURN
================================================================================
% Return % Return
Without Sales With Sales
Class I Shares* Charge Charge**
- --------------------------------------------------------------------------------
Inception (10/30/98)
through 6/30/99 +9.30% +3.56%
- --------------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
% Return % Return
Without Sales With Sales
Class A Shares* Charge Charge**
- --------------------------------------------------------------------------------
Inception (10/30/98)
through 6/30/99 +9.10% +3.37%
- --------------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
% Return % Return
Without With
Class B Shares* CDSC CDSC**
- --------------------------------------------------------------------------------
Inception (10/30/98)
through 6/30/99 +8.60% +4.60%
- --------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 4% and is reduced to 0% after
6 years.
** Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without With
Class C Shares* CDSC CDSC**
- --------------------------------------------------------------------------------
Inception (10/30/98)
through 6/30/99 +8.60% +7.60%
- --------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 1% and is reduced to 0% after
1 year.
** Assuming payment of applicable contingent deferred sales charge.
RECENT PERFORMANCE RESULTS*
================================================================================
3 Month Since Inception
As of August 31, 1999 Total Return Total Return
- --------------------------------------------------------------------------------
Class I +9.21% +13.80%
- --------------------------------------------------------------------------------
Class A +9.23 +13.60
- --------------------------------------------------------------------------------
Class B +8.88 +12.80
- --------------------------------------------------------------------------------
Class C +8.88 +12.80
- --------------------------------------------------------------------------------
* Investment results shown do not reflect sales charges; results shown would
be lower if sales charges were included. Total investment returns are
based on changes in the Fund's net asset values for the periods shown, and
assume reinvestment of all dividends and capital gains at net asset value
on the ex-dividend date. The Fund's inception date is 10/30/98.
August 31, 1999 (5) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS
MERCURY MASTER INTERNATIONAL PORTFOLIO
================================================================================
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EUROPE
============================================================================================================
Belgium
Insurance 97,799 Fortis 'B' $ 3,426,991 $ 3,355,508 0.8%
- ------------------------------------------------------------------------------------------------------------
Utilities-- 6,634 Electrabel SA 2,578,615 2,215,211 0.6
Electric & Gas
- ------------------------------------------------------------------------------------------------------------
Total Investments in Belgium 6,005,606 5,570,719 1.4
- ------------------------------------------------------------------------------------------------------------
Finland
Electrical & 98,803 Nokia Oyj 5,839,971 8,240,200 2.0
Electronics
- ------------------------------------------------------------------------------------------------------------
Total Investments in Finland 5,839,971 8,240,200 2.0
- ------------------------------------------------------------------------------------------------------------
France
Aerospace & 37,205 Aerospatiale Matra 813,428 836,607 0.2
Military
Technology
- ------------------------------------------------------------------------------------------------------------
Automobiles 35,568 Valeo SA 2,981,818 2,872,509 0.7
- ------------------------------------------------------------------------------------------------------------
Banking 22,980 Compagnie Financiere de
Paribas (CFP) 2,639,678 2,677,854 0.7
15,318 Societe Generale 'A' 2,358,831 2,996,526 0.7
-------------------------------------------
4,998,509 5,674,380 1.4
- ------------------------------------------------------------------------------------------------------------
Business/ 81,955 Vivendi 6,463,128 6,324,604 1.5
Public Services
- ------------------------------------------------------------------------------------------------------------
Energy 14,725 Elf Aquitaine SA 2,107,368 2,580,500 0.6
Sources 43,303 Total Fina SA 'B' 4,996,316 5,577,227 1.4
-------------------------------------------
7,103,684 8,157,727 2.0
- ------------------------------------------------------------------------------------------------------------
Insurance 42,625 Axa 5,305,394 5,300,907 1.3
- ------------------------------------------------------------------------------------------------------------
Leisure/ 21,451 Accor SA 4,741,313 5,158,718 1.3
Tourism
- ------------------------------------------------------------------------------------------------------------
Merchan- 3,703 Guilbert SA 513,126 537,523 0.1
dising 25,245 Pinault-Printemps-Redoute
SA 4,396,783 4,370,788 1.1
-------------------------------------------
4,909,909 4,908,311 1.2
- ------------------------------------------------------------------------------------------------------------
Metals-- 61,995 Usinor SA 725,463 958,815 0.2
Steel
- ------------------------------------------------------------------------------------------------------------
Total Investments in France 38,042,646 40,192,578 9.8
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (6) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EUROPE (continued)
============================================================================================================
Germany
Automobiles 29,188 DaimlerChrysler AG $ 2,614,247 $ 2,200,103 0.5%
- ------------------------------------------------------------------------------------------------------------
Banking 55,048 Deutsche Bank AG
(Registered) 3,741,835 3,759,987 0.9
49,187 HypoVereinsbank 3,703,977 2,913,089 0.7
-------------------------------------------
7,445,812 6,673,076 1.6
- ------------------------------------------------------------------------------------------------------------
Business/ 2,560 SAP AG (Systeme,
Public Anwendungen, Produkte in
Services der Datenverarbeitung)
(Preferred) 1,085,268 1,026,985 0.3
- ------------------------------------------------------------------------------------------------------------
Chemicals 79,142 Bayer AG 3,328,165 3,438,091 0.8
- ------------------------------------------------------------------------------------------------------------
Electrical & 78,063 Siemens AG 5,219,534 6,559,924 1.6
Electronics
- ------------------------------------------------------------------------------------------------------------
Insurance 16,401 Allianz AG (Registered Shares) 5,415,082 4,316,514 1.1
- ------------------------------------------------------------------------------------------------------------
Telecommu- 43,987 Mannesmann AG 5,046,883 6,742,663 1.7
nications
- ------------------------------------------------------------------------------------------------------------
Transpor- 55,769 Deutsche Lufthansa AG
tation-- (Registered Shares) 1,223,087 1,077,419 0.3
Airlines
- ------------------------------------------------------------------------------------------------------------
Total Investments in Germany 31,378,078 32,034,775 7.9
- ------------------------------------------------------------------------------------------------------------
Italy
Banking 719,092 Unicredito Italiano SpA 3,859,769 3,317,466 0.8
- ------------------------------------------------------------------------------------------------------------
Broadcast- 1,180,901 Seat Pagine Gialle SpA 1,454,541 1,626,914 0.4
ing &
Publishing
- ------------------------------------------------------------------------------------------------------------
Energy 490,272 ENI SpA 3,010,916 2,945,031 0.8
Sources
- ------------------------------------------------------------------------------------------------------------
Telecommu- 451,777 Tecnost SpA 1,050,265 1,180,429 0.3
nications 752,595 Telecom Italia Mobile
(TIM) SpA 3,090,845 2,606,008 0.6
235,770 Telecom Italia Mobile
(TIM) SpA 1,652,409 1,371,452 0.3
401,105 Telecom Italia SpA
(Registered) 2,553,957 2,295,080 0.6
-------------------------------------------
8,347,476 7,452,969 1.8
- ------------------------------------------------------------------------------------------------------------
Total Investments in Italy 16,672,702 15,342,380 3.8
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (7) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EUROPE (continued)
============================================================================================================
Luxembourg
Banking 38,198 Safra Republic Holdings, SA $ 2,553,829 $ 2,634,432 0.6%
- ------------------------------------------------------------------------------------------------------------
Total Investments in
Luxembourg 2,553,829 2,634,432 0.6
- ------------------------------------------------------------------------------------------------------------
Netherlands
Appliances & 39,208 Koninklijke (Royal) Philips
Household Electronics NV 2,902,285 4,037,778 1.0
Durables
- ------------------------------------------------------------------------------------------------------------
Broadcast- 81,398 Wolters Kluwer NV 'A' 3,885,392 3,024,802 0.7
ing &
Publishing
- ------------------------------------------------------------------------------------------------------------
Business/ 78,900 Vedior NV 'A' 1,393,351 1,361,869 0.3
Public Services
- ------------------------------------------------------------------------------------------------------------
Chemicals 72,207 Akzo Nobel NV 2,962,312 3,357,884 0.8
- ------------------------------------------------------------------------------------------------------------
Energy 94,664 Royal Dutch Petroleum
Sources Company 4,579,935 5,816,321 1.4
- ------------------------------------------------------------------------------------------------------------
Food & 86,240 Koninklijke Numico NV 3,661,125 3,541,595 0.9
Household 81,721 Unilever NV 'A' 6,917,611 5,681,068 1.4
Products -------------------------------------------
10,578,736 9,222,663 2.3
- ------------------------------------------------------------------------------------------------------------
Insurance 109,708 ING Groep NV 6,012,139 6,010,992 1.5
- ------------------------------------------------------------------------------------------------------------
Total Investments in
the Netherlands 32,314,150 32,832,309 8.0
- ------------------------------------------------------------------------------------------------------------
Spain
Banking 389,873 Banco Santander Central
Hispano, SA 3,760,269 3,914,211 1.0
- ------------------------------------------------------------------------------------------------------------
Broadcasting 8,800 Telefonica Publicidad e
& Publishing Informacion, SA 136,118 201,596 0.0
- ------------------------------------------------------------------------------------------------------------
Telecommu- 288,835 Telefonica SA 4,293,859 4,604,339 1.1
nications
- ------------------------------------------------------------------------------------------------------------
Total Investments in Spain 8,190,246 8,720,146 2.1
- ------------------------------------------------------------------------------------------------------------
Sweden
Electrical & 27,745 ABB Ltd. 2,230,097 2,846,849 0.7
Electronics 138,441 Telefonaktiebolaget LM
Ericsson 'B' 3,454,731 4,466,380 1.1
-------------------------------------------
5,684,828 7,313,229 1.8
- ------------------------------------------------------------------------------------------------------------
Insurance 67,600 Skandia Forsakrings AB 1,317,381 1,377,417 0.3
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (8) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EUROPE (continued)
============================================================================================================
Sweden (concluded)
Multi- 192,700 Investor AB 'B' $ 2,252,637 $ 2,348,860 0.6%
Industry
- ------------------------------------------------------------------------------------------------------------
Total Investments in Sweden 9,254,846 11,039,506 2.7
- ------------------------------------------------------------------------------------------------------------
Switzerland
Banking 17,093 Credit Suisse Group
(Registered Shares) 2,752,851 3,226,371 0.8
9,821 UBS AG (Registered Shares) 2,912,295 2,770,906 0.7
-------------------------------------------
5,665,146 5,997,277 1.5
- ------------------------------------------------------------------------------------------------------------
Business/ 6,667 Adecco SA (Registered
Public Services Shares) 2,895,387 3,674,066 0.9
- ------------------------------------------------------------------------------------------------------------
Chemicals 1,441 Clariant AG (Registered) 589,375 692,350 0.2
- ------------------------------------------------------------------------------------------------------------
Food & 1,376 Nestle SA
Household (Registered Shares) 2,776,748 2,715,312 0.7
Products
- ------------------------------------------------------------------------------------------------------------
Health & 3,258 Novartis AG
Personal Care (Registered Shares) 6,055,046 4,687,460 1.1
418 Roche Holding AG 5,035,322 4,833,263 1.2
-------------------------------------------
11,090,368 9,520,723 2.3
- ------------------------------------------------------------------------------------------------------------
Telecommu- 10,520 Swisscom AG
nications (Registered Shares) 3,871,043 3,468,017 0.8
- ------------------------------------------------------------------------------------------------------------
Total Investments in
Switzerland 26,888,067 26,067,745 6.4
- ------------------------------------------------------------------------------------------------------------
United Kingdom
Aerospace & 394,946 British Aerospace PLC 3,060,891 2,882,488 0.7
Military
Technology
- ------------------------------------------------------------------------------------------------------------
Banking 148,371 Barclays PLC 3,331,799 4,410,172 1.1
421,198 Lloyds TSB Group PLC 5,570,807 5,823,338 1.4
-------------------------------------------
8,902,606 10,233,510 2.5
- ------------------------------------------------------------------------------------------------------------
Beverages 255,517 British American Tobacco PLC 2,323,881 2,149,173 0.5
& Tobacco 261,621 Diageo PLC 2,850,459 2,648,183 0.7
-------------------------------------------
5,174,340 4,797,356 1.2
- ------------------------------------------------------------------------------------------------------------
Broadcast- 389,802 Reed International PLC 3,119,583 2,591,295 0.6
ing &
Publishing
- ------------------------------------------------------------------------------------------------------------
Energy 358,830 BP Amoco PLC 5,596,802 6,658,946 1.6
Sources
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (9) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EUROPE (concluded)
============================================================================================================
United Kingdom (concluded)
Health & 71,356 AstraZeneca Group PLC $ 2,987,265 $ 2,831,798 0.7%
Personal 248,196 Glaxo Wellcome PLC 8,041,718 6,523,984 1.6
Care 277,446 SmithKline Beecham PLC 3,650,652 3,612,986 0.9
-------------------------------------------
14,679,635 12,968,768 3.2
- ------------------------------------------------------------------------------------------------------------
Insurance 207,729 Allied Zurich PLC 2,796,106 2,538,231 0.6
175,455 CGU PLC 2,697,481 2,611,836 0.7
-------------------------------------------
5,493,587 5,150,067 1.3
- ------------------------------------------------------------------------------------------------------------
Leisure/ 196,726 Granada Group PLC 1,958,580 1,755,823 0.4
Tourism
- ------------------------------------------------------------------------------------------------------------
Merchan- 79,954 Dixons Group PLC 1,396,477 1,504,291 0.3
dising 89,604 Kingfisher PLC 1,269,335 1,077,591 0.3
182,918 Marks & Spencer PLC 1,294,088 1,221,131 0.3
913,557 Tesco PLC 2,583,847 2,704,444 0.7
-------------------------------------------
6,543,747 6,507,457 1.6
- ------------------------------------------------------------------------------------------------------------
Metals/ 65,961 Rio Tinto PLC
Non-Ferrous (Registered Shares) 1,337,279 1,186,971 0.3
- ------------------------------------------------------------------------------------------------------------
Mining 18,000 Anglo American PLC 912,452 991,266 0.2
- ------------------------------------------------------------------------------------------------------------
Recreation & 185,397 EMI Group PLC 1,120,702 1,575,771 0.4
Other Con-
sumer Goods
- ------------------------------------------------------------------------------------------------------------
Telecommu- 368,538 British Telecommunications
nications PLC 6,092,693 5,642,999 1.4
282,611 Cable & Wireless PLC 3,558,402 3,242,068 0.8
329,238 Vodafone AirTouch PLC 5,496,603 6,633,493 1.6
-------------------------------------------
15,147,698 15,518,560 3.8
- ------------------------------------------------------------------------------------------------------------
Transport- 245,593 The Peninsular and Oriental
ation-- Steam Navigation Company 2,787,237 4,026,835 1.0
Shipping
- ------------------------------------------------------------------------------------------------------------
Utilities-- 637,573 BG PLC 3,959,287 3,833,774 0.9
Electric & 211,640 National Grid Group PLC 1,704,488 1,412,024 0.4
Gas -------------------------------------------
5,663,775 5,245,798 1.3
- ------------------------------------------------------------------------------------------------------------
Total Investments in the
United Kingdom 81,498,914 82,090,911 20.1
- ------------------------------------------------------------------------------------------------------------
Total Investments in Europe 258,639,055 264,765,701 64.8
- ------------------------------------------------------------------------------------------------------------
LATIN AMERICA
============================================================================================================
Brazil
Banking 11,200 Uniao de Bancos Brasileiros
SA (Unibanco) (GDR) (b) 307,497 196,000 0.1
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (10) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LATIN AMERICA (concluded)
============================================================================================================
Brazil (concluded)
Beverages & 10,800 Companhia Cervejaria
Tobacco Brahma (Preferred) (ADR) (a) $ 124,996 $ 114,075 0.0%
- ------------------------------------------------------------------------------------------------------------
Telecommu- 19,400 Embratel Participacoes SA
nications (ADR) (a) 202,245 207,338 0.0
5,600 Tele Centro Sul Participacoes
SA (ADR) (a) 337,748 306,250 0.1
9,400 Telesp Celular Participacoes
SA (ADR) (a) 245,164 217,375 0.1
18,500 Telesp Participacoes SA
(ADR) (a) 404,516 301,781 0.1
-------------------------------------------
1,189,673 1,032,744 0.3
- ------------------------------------------------------------------------------------------------------------
Total Investments in Brazil 1,622,166 1,342,819 0.4
- ------------------------------------------------------------------------------------------------------------
Mexico
Beverages & 27,500 Coca-Cola Femsa SA (ADR) (a) 510,837 417,656 0.1
Tobacco
- ------------------------------------------------------------------------------------------------------------
Broadcast- 22,000 Grupo Televisa SA (GDR) (b) 988,071 800,250 0.2
ing &
Publishing
- ------------------------------------------------------------------------------------------------------------
Construction 8,500 Desc, SA de CV (ADR) (a) 197,673 166,281 0.0
& Housing
- ------------------------------------------------------------------------------------------------------------
Primary 12,900 Tubos de Acero de Mexico SA
Metals (ADR) (a) 155,432 151,575 0.0
- ------------------------------------------------------------------------------------------------------------
Telecommu- 8,900 Telefonos de Mexico SA
nications (ADR) (a) 720,413 661,937 0.2
- ------------------------------------------------------------------------------------------------------------
Total Investments in Mexico 2,572,426 2,197,699 0.5
- ------------------------------------------------------------------------------------------------------------
Total Investments in
Latin America 4,194,592 3,540,518 0.9
- ------------------------------------------------------------------------------------------------------------
PACIFIC BASIN/ASIA
============================================================================================================
Australia
Banking 318,000 Colonial Limited 1,143,810 1,194,784 0.3
90,000 Commonwealth Bank
Australia 1,404,231 1,415,748 0.3
-------------------------------------------
2,548,041 2,610,532 0.6
- ------------------------------------------------------------------------------------------------------------
Beverages & 209,000 Foster's Brewing Group Limited 592,094 612,040 0.1
Tobacco
- ------------------------------------------------------------------------------------------------------------
Business/ 34,000 Brambles Industries Limited 988,468 946,812 0.2
Public Services
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (11) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PACIFIC BASIN/ASIA (continued)
============================================================================================================
Australia (concluded)
Electrical & 208,000 Telstra Corporation Limited $ 1,047,188 $ 1,081,538 0.3%
Electronics
- ------------------------------------------------------------------------------------------------------------
Energy 90,000 Broken Hill Proprietary
Sources Company Limited 1,052,186 967,527 0.2
- ------------------------------------------------------------------------------------------------------------
Forest 200,000 Amcor Limited 1,153,658 1,041,854 0.3
Products &
Paper
- ------------------------------------------------------------------------------------------------------------
Merchan- 187,000 Coles Myer Limited 1,017,653 1,042,854 0.3
dising
- ------------------------------------------------------------------------------------------------------------
Metals/ 110,000 Rio Tinto Limited 1,539,110 1,887,842 0.5
Non-Ferrous
- ------------------------------------------------------------------------------------------------------------
Recreation & 110,000 TABCORP Holdings Limited 790,751 750,926 0.2
Other Con-
sumer Goods
- ------------------------------------------------------------------------------------------------------------
Total Investments in
Australia 10,729,149 10,941,925 2.7
- ------------------------------------------------------------------------------------------------------------
Hong Kong
Banking 69,000 HSBC Holdings PLC 609,684 855,302 0.2
335,646 HSBC Holdings PLC (GBP) 3,509,876 4,149,778 1.0
-------------------------------------------
4,119,560 5,005,080 1.2
- ------------------------------------------------------------------------------------------------------------
Industrial-- 246,000 Hutchison Whampoa Limited 2,053,948 2,399,869 0.6
Components
- ------------------------------------------------------------------------------------------------------------
Transporta- 1,085,000 Cathay Pacific Airways 1,661,151 1,844,478 0.5
tion--
Airlines
- ------------------------------------------------------------------------------------------------------------
Utilities-- 1,391,100 Hong Kong and China Gas
Electric & Company Ltd. 1,940,314 1,979,659 0.5
Gas
- ------------------------------------------------------------------------------------------------------------
Total Investments in
Hong Kong 9,774,973 11,229,086 2.8
- ------------------------------------------------------------------------------------------------------------
Japan
Appliances & 69,000 Matsushita Electric Industrial
Household Company, Ltd. 1,165,149 1,361,345 0.3
Durables 23,000 Sony Corporation 1,852,668 2,978,992 0.7
-------------------------------------------
3,017,817 4,340,337 1.0
- ------------------------------------------------------------------------------------------------------------
Automobiles 43,000 Honda Motor Co., Ltd. 1,597,243 1,728,170 0.4
80,000 Toyota Motor Corporation 2,376,528 2,360,248 0.6
-------------------------------------------
3,973,771 4,088,418 1.0
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (12) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PACIFIC BASIN/ASIA (continued)
============================================================================================================
Japan (continued)
Banking 123,000 The Bank of Tokyo-
Mitsubishi, Ltd. $ 1,368,600 $ 1,836,911 0.5%
175,000 The Sanwa Bank, Ltd. 1,615,902 2,397,698 0.6
159,000 The Sumitomo Bank, Ltd. 1,880,654 2,178,480 0.5
-------------------------------------------
4,865,156 6,413,089 1.6
- ------------------------------------------------------------------------------------------------------------
Beverages & 185 Japan Tobacco, Inc. 1,752,847 2,568,506 0.6
Tobacco
- ------------------------------------------------------------------------------------------------------------
Building 150,000 Sekisui Chemical Co., Ltd. 896,127 835,769 0.2
Materials &
Components
- ------------------------------------------------------------------------------------------------------------
Chemicals 395,000 Asahi Chemical Industry
Co., Ltd. 1,832,528 2,110,659 0.5
264,000 Mitsui Chemicals Inc. 1,242,679 1,929,119 0.5
370,000 Toray Industries, Inc. 1,788,578 1,899,342 0.5
-------------------------------------------
4,863,785 5,939,120 1.5
- ------------------------------------------------------------------------------------------------------------
Construc- 250,000 Sekisui House, Ltd. 2,597,535 2,687,706 0.7
tion &
Housing
- ------------------------------------------------------------------------------------------------------------
Data 135,000 Fujitsu Limited 1,605,082 3,958,257 1.0
Processing & 9,500 Trend Micro Incorporated 1,561,085 2,238,765 0.5
Reproduction -------------------------------------------
3,166,167 6,197,022 1.5
- ------------------------------------------------------------------------------------------------------------
Electrical & 222,000 Hitachi Ltd. 1,388,021 2,252,850 0.5
Electronics 286 NTT Data Corporation 1,702,145 2,769,090 0.7
7,100 Softbank Corporation 1,540,191 2,438,436 0.6
-------------------------------------------
4,630,357 7,460,376 1.8
- ------------------------------------------------------------------------------------------------------------
Electronic 24,000 Alpine Electronics 276,361 361,710 0.1
Components/ 16,000 Fujitsu Support and Service
Instruments Inc. (FSAS) 963,473 4,135,915 1.0
31,000 Murata Manufacturing
Co., Ltd. 1,872,284 2,491,779 0.6
-------------------------------------------
3,112,118 6,989,404 1.7
- ------------------------------------------------------------------------------------------------------------
Energy 338,000 Mitsui Mining & Smelting
Sources Co., Ltd. 1,810,560 1,997,497 0.5
- ------------------------------------------------------------------------------------------------------------
Financial 176,000 The Nomura Securities
Services Co., Ltd. 1,755,878 2,580,197 0.6
- ------------------------------------------------------------------------------------------------------------
Food & 97,000 Kao Corporation 2,245,758 2,755,480 0.7
Household
Products
- ------------------------------------------------------------------------------------------------------------
Health & 41,000 Takeda Chemical Industries,
Personal Care Ltd. 1,405,874 2,059,737 0.5
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (13) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PACIFIC BASIN/ASIA (continued)
============================================================================================================
Japan (concluded)
Industrial-- 72,000 Bridgestone Corp. $ 2,157,081 $ 2,038,729 0.5%
Components 189,000 Minebea Company Ltd. 1,861,688 2,278,772 0.6
-------------------------------------------
4,018,769 4,317,501 1.1
- ------------------------------------------------------------------------------------------------------------
Insurance 91,000 The Tokio Marine & Fire
Insurance Co. Ltd. 1,045,405 1,072,251 0.3
- ------------------------------------------------------------------------------------------------------------
Machinery & 63,000 Komori Corporation 1,230,653 1,352,302 0.3
Engineering 361,000 NSK Limited 2,467,029 2,321,374 0.6
662,000 Sumitomo Heavy Industries,
Ltd. 1,552,659 2,225,210 0.5
-------------------------------------------
5,250,341 5,898,886 1.4
- ------------------------------------------------------------------------------------------------------------
Merchan- 28,000 Ito-Yokado Co., Ltd. 2,008,777 2,061,381 0.5
dising 41,000 Tokyo Electron Limited 2,071,345 2,883,632 0.7
-------------------------------------------
4,080,122 4,945,013 1.2
- ------------------------------------------------------------------------------------------------------------
Metals-- 875,000 Nippon Steel Corporation 1,613,102 2,293,798 0.6
Steel
- ------------------------------------------------------------------------------------------------------------
Real Estate 287,000 Mitsubishi Estate Company,
Limited 2,856,151 2,967,519 0.7
- ------------------------------------------------------------------------------------------------------------
Recreation & 14,000 Nintendo Company Ltd. 1,220,667 2,429,668 0.6
Other Con-
sumer Goods
- ------------------------------------------------------------------------------------------------------------
Telecommu- 58 NTT Mobile Communications
nications Network, Inc. 2,284,613 964,194 0.2
232 NTT Mobile Communications
Network, Inc. 0 3,835,586 0.9
235 Nippon Telegraph &
Telephone Corporation (NTT) 2,210,310 2,640,208 0.7
-------------------------------------------
4,494,923 7,439,988 1.8
- ------------------------------------------------------------------------------------------------------------
Textiles & 24,000 World Co., Ltd. 1,335,085 2,795,031 0.7
Apparel
- ------------------------------------------------------------------------------------------------------------
Transporta- 407 East Japan Railway Company 2,284,470 2,464,752 0.6
tion--Road &
Rail
- ------------------------------------------------------------------------------------------------------------
Utilities-- 90,000 Tokyo Electric Power 2,067,291 2,096,273 0.5
Electric & Gas
- ------------------------------------------------------------------------------------------------------------
Total Investments in Japan 70,360,076 95,633,338 23.4
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (14) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PACIFIC BASIN/ASIA (continued)
============================================================================================================
Singapore
Broadcast- 105,000 Singapore Press Holdings
ing & Ltd. $ 1,355,894 $ 1,746,984 0.4%
Publishing
- ------------------------------------------------------------------------------------------------------------
Multi- 250,000 NatSteel Electronics Ltd. 1,062,898 1,247,846 0.3
Industry
- ------------------------------------------------------------------------------------------------------------
Transporta- 134,000 Singapore Airlines Ltd. 'Foreign' 1,195,362 1,258,066 0.3
tion--Airlines
- ------------------------------------------------------------------------------------------------------------
Total Investments in Singapore 3,614,154 4,252,896 1.0
- ------------------------------------------------------------------------------------------------------------
South Korea
Electronic 13,500 Samsung Electronics
Components/ (GDR) (b) 578,947 1,248,750 0.3
Instruments
- ------------------------------------------------------------------------------------------------------------
Financial 44,000 Kookmin Bank (GDR) (b) 608,960 572,000 0.1
Services
- ------------------------------------------------------------------------------------------------------------
Metals-- 18,000 Pohang Iron & Steel Company
Steel Ltd. (ADR) (a) 467,955 661,500 0.1
- ------------------------------------------------------------------------------------------------------------
Telecommu- 20,000 Korea Telecom Corporation
nications (ADR) (a) 682,044 650,000 0.2
- ------------------------------------------------------------------------------------------------------------
Utilities-- 36,000 Korea Electric Power
Electric & Gas Corporation (ADR) (a) 558,972 648,000 0.2
- ------------------------------------------------------------------------------------------------------------
Total Investments in
South Korea 2,896,878 3,780,250 0.9
- ------------------------------------------------------------------------------------------------------------
Taiwan
Data 40,000 Siliconware Precision Industries
Processing & Company (GDR) (b) 483,801 524,000 0.1
Reproduction 28,290 Taiwan Semiconductor
Manufacturing Company Ltd.
(ADR) (a) 549,410 818,642 0.2
-------------------------------------------
1,033,211 1,342,642 0.3
- ------------------------------------------------------------------------------------------------------------
Electrical & 33,000 Winbond Electronics
Electronics Corporation (GDR) (b) 398,910 617,100 0.2
- ------------------------------------------------------------------------------------------------------------
Metals-- 35,760 China Steel Corporation
Steel (GDR) (b) 567,780 625,800 0.2
- ------------------------------------------------------------------------------------------------------------
Total Investments in Taiwan 1,999,901 2,585,542 0.7
- ------------------------------------------------------------------------------------------------------------
</TABLE>
August 31, 1999 (15) Mercury International Fund
<PAGE>
SCHEDULE OF INVESTMENTS (CONCLUDED)
<TABLE>
<CAPTION>
In US Dollars
--------------------------------------------
Shares Percent of
Industries Held Investments Cost Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PACIFIC BASIN/ASIA (concluded)
============================================================================================================
Thailand
Banking 150,000 Thai Farmers Bank Public
Company Limited 'Foreign' $ 434,358 $ 215,405 0.1%
- ------------------------------------------------------------------------------------------------------------
Business/ 40,000 Advanced Info Service Public
Public Company Limited 'Foreign' 478,030 549,347 0.1
Services
- ------------------------------------------------------------------------------------------------------------
Telecommu- 200,000 Total Access Communication
nications Public Company Limited
(ADR) (a) 647,311 448,000 0.1
- ------------------------------------------------------------------------------------------------------------
Total Investments in Thailand 1,559,699 1,212,752 0.3
- ------------------------------------------------------------------------------------------------------------
Total Investments in the
Pacific Basin/Asia 100,934,830 129,635,789 31.8
- ------------------------------------------------------------------------------------------------------------
Total Investments $363,768,477 397,942,008 97.5
============
Time Deposit* 9,019,000 2.2
Other Assets Less Liabilities 1,280,757 0.3
------------------------
Net Assets $408,241,765 100.0%
========================
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a) American Depositary Receipts (ADR).
(b) Global Depositary Receipts (GDR).
* Time deposit bears interest at 5.593% and matures on 9/01/1999.
August 31, 1999 (16) Mercury International Fund
<PAGE>
PORTFOLIO INFORMATION
PORTFOLIO CHANGES FOR THE QUARTER ENDED AUGUST 31, 1999
Additions
========================================
Aerospatiale Matra
- ----------------------------------------
Amcor Limited
- ----------------------------------------
*Bangkok Bank Public Company Limited
'Foreign'
- ----------------------------------------
Bridgestone Corp.
- ----------------------------------------
Broken Hill Proprietary Company Limited
- ----------------------------------------
Clariant AG (Registered)
- ----------------------------------------
Coca-Cola Femsa SA (ADR)
- ----------------------------------------
Desc, SA de CV (ADR)
- ----------------------------------------
Deutsche Bank AG (Registered)
- ----------------------------------------
East Japan Railway Company
- ----------------------------------------
Embratel Participacoes SA (ADR)
- ----------------------------------------
Granada Group PLC
- ----------------------------------------
*Grupo Iusacell SA
- ----------------------------------------
Investor AB 'B'
- ----------------------------------------
Ito-Yokado Co., Ltd.
- ----------------------------------------
NSK Limited
- ----------------------------------------
NatSteel Electronics Ltd.
- ----------------------------------------
Rio Tinto PLC (Registered Shares)
- ----------------------------------------
Sekisui House, Ltd.
- ----------------------------------------
Skandia Forsakrings AB
- ----------------------------------------
Softbank Corporation
- ----------------------------------------
Telefonica Publicidad e Informacion, SA
- ----------------------------------------
Total Access Communication Public
Company Limited (ADR)
- ----------------------------------------
Trend Micro Incorporated
- ----------------------------------------
Tubos de Acero de Mexico SA (ADR)
- ----------------------------------------
Vedior NV 'A'
- ----------------------------------------
Deletions
==============================================
*Bangkok Bank Public Company Limited 'Foreign'
- ----------------------------------------------
Companhia Paranaense de Energia -- Copel
(ADR)
- ----------------------------------------------
Electrolux AB 'B'
- ----------------------------------------------
Fomento Economico Mexicano, SA de CV (ADR)
- ----------------------------------------------
*Grupo Iusacell SA
- ----------------------------------------------
Hong Kong Telecommunications Limited
- ----------------------------------------------
JUSCO Co., Ltd.
- ----------------------------------------------
Telefonica SA (New Shares)
- ----------------------------------------------
Veba AG
- ----------------------------------------------
*Added and deleted in the same quarter.
August 31, 1999 (17) Mercury International Fund
<PAGE>
PORTFOLIO INFORMATION (CONCLUDED)
WORLDWIDE INVESTMENTS AS OF AUGUST 31, 1999
Ten Largest Percent of
Equity Holdings Net Assets
==================================================
Nokia Oyj 2.0%
- --------------------------------------------------
Mannesmann AG 1.7
- --------------------------------------------------
BP Amoco PLC 1.6
- --------------------------------------------------
Vodafone AirTouch PLC 1.6
- --------------------------------------------------
Siemens AG 1.6
- --------------------------------------------------
Glaxo Wellcome PLC 1.6
- --------------------------------------------------
Vivendi 1.5
- --------------------------------------------------
ING Groep NV 1.5
- --------------------------------------------------
Lloyds TSB Group PLC 1.4
- --------------------------------------------------
Royal Dutch Petroleum Company 1.4
- --------------------------------------------------
Ten Largest Percent of
Industries Net Assets
==================================================
Banking 13.0%
- --------------------------------------------------
Telecommunications 11.8
- --------------------------------------------------
Electrical & Electronics 7.7
- --------------------------------------------------
Insurance 6.6
- --------------------------------------------------
Energy Sources 6.5
- --------------------------------------------------
Health & Personal Care 6.0
- --------------------------------------------------
Merchandising 4.3
- --------------------------------------------------
Food & Household Products 3.7
- --------------------------------------------------
Business/Public Services 3.3
- --------------------------------------------------
Chemicals 3.3
- --------------------------------------------------
Percent of
Ten Largest Countries Net Assets
==================================================
Japan 23.4%
- --------------------------------------------------
United Kingdom 20.1
- --------------------------------------------------
France 9.8
- --------------------------------------------------
Netherlands 8.0
- --------------------------------------------------
Germany 7.9
- --------------------------------------------------
Switzerland 6.4
- --------------------------------------------------
Italy 3.8
- --------------------------------------------------
Hong Kong 2.8
- --------------------------------------------------
Sweden 2.7
- --------------------------------------------------
Australia 2.7
- --------------------------------------------------
August 31, 1999 (18) Mercury International Fund
<PAGE>
OFFICERS AND DIRECTORS
Jeffrey M. Peek, Director and President
David O. Beim, Director
James T. Flynn, Director
W. Carl Kester, Director
Karen P. Robards, Director
Terry K. Glenn, Director and
Executive Vice President
Peter John Gibbs, Senior Vice President
Donald C. Burke, Vice President
and Treasurer
Robert E. Putney, III, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(888) 763-2260
This report is not authorized for use as an offer of sale or a solicitation
of an offer to buy shares of the Fund unless accompanied or preceded by the
Fund's current prospectus. Past performance results shown in this report
should not be considered a representation of future performance. Investment
return and principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Statements and
other information herein are as dated and are subject to change.
The Fund seeks long-term capital growth through investments primarily in a
diversified portfolio of equity securities of companies located outside the
United States. The Fund will seek to achieve its objective by investing all
of its assets in Mercury Master International Portfolio of Mercury Asset
Management Master Trust, which has the same investment objective as the
Fund. The Fund's investment experience will correspond to the investment
experience of the Portfolio.
Mercury International Fund of
Mercury Asset Management Funds, Inc.
Box 9011
Princeton, NJ
08543-9011
[RECYCLE LOGO] Printed on post-consumer recycled paper MERCINTL--8/99
