MERRILL LYNCH
PACIFIC FUND, INC.
FUND LOGO
Semi-Annual Report
June 30, 2000
Officers and Directors
Terry K. Glenn, President and Director
Charles C. Reilly, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Robert C. Doll, Jr., Senior Vice President
Stephen I. Silverman, Senior Vice
President and Portfolio Manager
Donald C. Burke, Vice President and
Treasurer
Lori A. Martin, 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
(800) 637-3863
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.
Merrill Lynch
Pacific Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH PACIFIC FUND, INC.
DEAR SHAREHOLDER
Merrill Lynch Pacific Fund, Inc. underperformed relative to its
unmanaged Benchmark Index for the six-month period ended June 30,
2000. The Fund's Class A, Class B, Class C and Class D Shares
declined -12.41%, -12.85%, -12.84% and -12.49%, respectively,
compared to a -5.77% return for the unmanaged Benchmark Index and a
+48.12% return for the unmanaged MSCI Pacific Basin Index. (Fund
performance does not reflect sales charges, and would be lower if
sales charges were included. Complete performance information can be
found on pages 3 and 4 of this report to shareholders.)
We view this underperformance as a short-term phenomenon, and it has
occurred regularly throughout our history of managing the Fund. We
may underperform not only for six-month periods, but also for longer
periods of time. However, successful portfolio managers can, and
often do, underperform relative to their benchmarks 30%--40% of the
time and still maintain superior records; that is, they will achieve
returns appreciably better than the relevant benchmarks in the long
run.
In our view, performance of less than one year is not a valid period
to judge investment ability. Of course, we would prefer to
outperform our benchmarks during every performance period and
certainly every year, but this is highly unlikely to occur and is
not a viable goal to strive for. Our hope is that over the balance
of the year our performance will improve relative to our benchmarks,
enabling us to exceed it by year end.
Investment Strategy Shift
Merrill Lynch Pacific Fund, Inc.'s portfolio is (and always has
been) very different from the benchmarks against which we compete.
This accounts largely for why the Fund has outperformed its
unmanaged benchmarks by over 600 basis points (6.00%) on average per
year since 1983. However, the stock-specific risk at present is
somewhat lower in the Fund's portfolio than it has been in the past.
In other words, the percentage of the portfolio invested in our
largest holdings is somewhat smaller than has often been the case in
the past.
This decreased level of stock-specific risk primarily reflects the
fact that many of our favorite stocks rose significantly in the
closing months of 1999, leading us to trim our holdings somewhat. We
did not close these positions out entirely because we regard
companies such as Rohm Company Ltd., Murata Manufacturing Co., Ltd.
and Shin-etsu Chemical Co., Ltd. as among the best companies in
Japan. However, by the end of 1999 their prices were, in our
opinion, possibly higher than the companies' worth. Accordingly, we
reduced certain positions, in some cases aggressively.
Subsequent to reducing our holdings, the share prices of Murata and
Rohm declined 41% and 27%, respectively, in the first six months of
2000. Although in hindsight the Fund's short-term performance would
have been better had we closed out these positions altogether, our
goal is not to successfully forecast short-term stock prices. Our
approach is to study a company's business, analyze its financial
statements, meet with its management, and assess its competitors,
all in an effort to gauge what the company is worth. If the
company's share price appears in our opinion to be less than its
worth and the company's management does not seem to be eroding its
value (an all too common characteristic of many companies we
evaluate), then we make an investment. We assume that the stock
price will appreciate because others will eventually share our view
of the company's undervaluation and because the company will add
value (that is, increase earnings) as time passes.
We trimmed our holdings in Murata and Rohm because we believed their
shares were at the upper end of what we considered to be reasonable
valuations. However, we did not sell most of our investments in
these companies, because we still believe that they are superior
companies in good industries. Over the long term, Murata and Rohm
are exactly the type of companies that we would like the portfolio
to own, even though there will be times when their valuations reach
levels that we consider higher than justified, based on our
research. Through many different business and product cycles, these
companies have proved to us over the years that they are able to
adapt, innovate and flourish. Therefore, we are reluctant to
eliminate our investments in them when their share prices
momentarily appear high. Furthermore, for companies such as Murata
and Rohm, we cannot state definitively that their shares are
overvalued at any given point in time, because their future earnings
growth may turn out to be higher than we forecast. All we can
determine with certainty is that their share prices are higher than
they used to be relative to our current estimation of their
prospects.
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
Currently, the Japanese stock market's performance has been very
poor. For the first half of 2000, the Nikkei index is down 17%; the
Topix down 15%; and the Topix 100, which represents the largest
listed companies, down 18%. Although we do not perceive a marked
deterioration in the fundamental backdrop to warrant these declines,
our shareholders will notice that our Japanese portfolio is more
conservative in structure today than at the beginning of the year.
We used the proceeds of the partial sales of our largest holdings to
invest in some electric power utilities. These stocks have dividend
yields which, when compared with Japanese interest rates, are very
high. In addition, we believe that these companies are beginning to
make decisions that serve the interests of their shareholders. So,
we made our portfolio more conservative not because anything is
going amiss at our Japanese companies, but because their prices
appreciated and we became concerned about their valuations. We
shifted the money that was realized from the sales of these stocks
into a lowly valued sector in which companies appear to be making
positive moves.
Stock market performance in the rest of the Pacific Basin has varied
from slightly positive (Hong Kong) to very poor (Korea). However,
our non-Japanese investments are largely in Hong Kong (primarily in
Hutchison Whampoa Limited), Australia (primarily Lend Lease
Corporation Limited) and India (primarily Satyam Computer Services
Limited). These positions are very stock specific and do not at all
reflect our view of the prospects for the Hong Kong, Australian or
Indian stock markets.
In Conclusion
Although we lessened the portfolio's stock-specific risk somewhat,
as always, the Fund's performance is dependent on the performance of
our major investments: Murata, Rohm, The Furukawa Electric Co.,
Ltd., Shin-Etsu Chemical, Canon, Inc., Japanese non-life insurance
companies, and now, the Japanese utilities that we recently
purchased. This is the investment approach that has served us well
over the years, and we believe that it will continue to do so over
the long term.
We thank you for your investment in Merrill Lynch Pacific Fund,
Inc., and we look forward to reviewing our outlook and strategy with
you again in our annual report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Stephen I. Silverman)
Stephen I. Silverman
Senior Vice President and
Portfolio Manager
August 16, 2000
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
PERFORMANCE DATA
About Fund Performance
Investors are able to purchase shares of the Fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth 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 D Shares after approximately 8 years. (There is no initial
sales charge for automatic share conversions.)
* 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 are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
None of the past results shown should be considered a representation
of future performance. Figures shown in the "Recent Performance
Results" and "Average Annual 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.
<TABLE>
Recent Performance Results
<CAPTION>
Market Performance
In Local Currency/In US Dollars
6 Month 12 Month
As of June 30, 2000 % Change % Change
<S> <C> <C>
ML Pacific Fund, Inc. Class A Shares--Total Investment Return* -12.41% +32.16%
ML Pacific Fund, Inc. Class B Shares--Total Investment Return* -12.85 +30.82
ML Pacific Fund, Inc. Class C Shares--Total Investment Return* -12.84 +30.89
ML Pacific Fund, Inc. Class D Shares--Total Investment Return* -12.49 +31.86
Benchmark Index** - 5.77 +19.78
Japan - 2.18/-5.53 +10.68/+26.56
Australia + 9.22/+0.32 +13.64/+3.08
Hong Kong -12.81/-13.06 + 6.01/+5.51
Taiwan - 4.45/-2.65 - 0.44/+4.38
India - 0.77/-3.40 +36.32/+32.16
South Korea - 4.42/-2.71 + 1.18/+5.03
Singapore -19.74/-22.71 - 5.81/-7.31
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
**Unmanaged. The Benchmark Index is a customized index used to
measure the Fund's relative performance, comprised as follows: 68%
Morgan Stanley Capital International (MSCI) Japan, 10% MSCI
Australia, 10% MSCI Hong Kong, 6% MSCI Taiwan, 2% MSCI India, 2%
MSCI Korea, and 2% MSCI Singapore; indexes are net of dividends and
"free" when available.
Past performance is not indicative of future results.
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
PERFORMANCE DATA (concluded)
A mountain chart depicting Results of a $1,000 Investment Since
Inception--Class A Shares
(5.25% sales charge--$947.50 net amount invested; assuming
reinvestment of all dividends and capital gains distributions)
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/00 +32.16% +25.23%
Five Years Ended 6/30/00 +14.40 +13.17
Ten Years Ended 6/30/00 +11.07 +10.47
*Maximum sales charge is 5.25%. (Prior to October 21, 1994, Class A
Shares were offered at a higher sales charge. Thus, actual returns
would have been lower than shown for the ten-year period.)
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/00 +30.82% +26.82%
Five Years Ended 6/30/00 +13.22 +13.22
Ten Years Ended 6/30/00 + 9.93 + 9.93
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 6/30/00 +30.89% +29.89%
Five Years Ended 6/30/00 +13.23 +13.23
Inception (10/21/94)
through 6/30/00 +10.20 +10.20
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 6/30/00 +31.86% +24.94%
Five Years Ended 6/30/00 +14.12 +12.90
Inception (10/21/94)
through 6/30/00 +11.07 +10.03
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Held/ Percent of
Industry Face Amount Investments Value Net Assets
Japan
<S> <C> <C> <C> <C>
Automobile 1,717,000 Suzuki Motor Corporation $ 22,199,858 1.2%
Beverage 380,000 Chukyo Coca-Cola Bottling Co., Ltd. 3,842,919 0.2
314,748 Coca-Cola West Japan Company Limited 9,965,557 0.5
468,000 Hokkaido Coca-Cola Bottling Co., Ltd. 5,276,915 0.3
386,000 Kinki Coca-Cola Bottling Co., Ltd. 5,143,991 0.3
476,000 Mikuni Coca-Cola Bottling 6,923,718 0.4
-------------- ------
31,153,100 1.7
Building & Construction 1,990,000 Okumura Corporation 7,222,343 0.4
Chemicals 1,178,000 Shin-Etsu Chemical Co., Ltd. 59,899,249 3.3
Consumer Electronics 1,200,000 Matsushita Electric Industrial Company, Ltd. 31,189,452 1.7
115,000 Nintendo Company Ltd. 20,129,484 1.1
344,000 Sony Corporation 32,187,515 1.8
-------------- ------
83,506,451 4.6
Containers 1,581,000 Toyo Seikan Kaisha, Ltd. 29,586,314 1.6
Electric Construction 1,943,000 Chudenko Corporation 27,435,773 1.5
2,836,000 Kinden Corporation 17,851,482 1.0
1,232,000 Taihei Dengyo Kaisha, Ltd. 3,237,049 0.2
-------------- ------
48,524,304 2.7
Electrical Equipment 1,350,000 Fuji Electric Co., Ltd. 5,920,325 0.3
2,804,000 The Furukawa Electric Co., Ltd. 58,701,007 3.2
494,000 Murata Manufacturing Co., Ltd. 71,061,670 3.9
271,500 Rohm Company Ltd. 79,547,280 4.4
-------------- ------
215,230,282 11.8
Financial Services 1,922,000 The Asahi Bank, Ltd. 8,101,810 0.4
YEN 160,000,000 Kokusai Securities Co., Ltd., 1.25% due 9/30/2013 2,389,301 0.1
354,000,000 Sanwa International Finance Ltd. (Convertible Preferred) 3,341,763 0.2
3,237,000 The Tokai Bank Ltd. 16,000,671 0.9
-------------- ------
29,833,545 1.6
Internet 167,600 Softbank Corp. 22,810,264 1.3
Machinery 1,442,000 Toyoda Automatic Loom Works, Ltd. 31,278,201 1.7
Office Equipment 1,223,000 Canon, Inc. 61,031,520 3.4
1,500,000 Fujitsu Limited 52,029,677 2.9
-------------- ------
113,061,197 6.3
Pharmaceuticals 1,329,000 Yamanouchi Pharmaceutical Co., Ltd. 72,727,281 4.0
Property & Casualty 10,626,000 The Dai-Tokyo Fire and Marine Insurance Co., Ltd. 37,862,124 2.1
Insurance 4,062,000 The Fuji Fire and Marine Insurance Comoany, Limited 7,831,842 0.4
7,773,000 The Koa Fire & Marine Insurance Co., Ltd. 24,243,561 1.4
8,030,000 The Nichido Fire & Marine Insurance Co., Ltd. 44,018,714 2.4
6,568,000 The Sumitomo Marine & Fire Insurance Co., Ltd. 38,301,177 2.1
3,413,000 The Tokio Marine & Fire Insurance Co. Ltd. 39,483,125 2.2
-------------- ------
191,740,543 10.6
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Held/ Percent of
Industry Face Amount Investments Value Net Assets
<S> <C> <C> <C> <C>
Japan (concluded)
Retailing 847,000 Ito-Yokado Co., Ltd. $ 51,073,768 2.8%
364,000 Sangetsu Co., Ltd. 6,020,509 0.3
-------------- ------
57,094,277 3.1
Telecommunications 1,000 NTT Mobile Communications Network, Inc. 27,125,372 1.5
552 Nippon Telegraph & Telephone Corporation (NTT) 7,356,174 0.4
-------------- ------
34,481,546 1.9
Transportation 4,700 East Japan Railway Company 27,363,546 1.5
Utilities--Electric 1,002,400 Chubu Electric Power Company, Incorporated 17,858,551 1.0
1,270,000 Kansai Electric Power Company, Inc. 22,782,099 1.3
2,000,000 Tokyo Electric Power 48,863,475 2.7
-------------- ------
89,504,125 5.0
Total Investments in Japan (Cost--$1,025,736,593) 1,167,216,426 64.3
Australia
Industrials 1,208,543 Brambles Industries Limited 37,249,875 2.1
Leisure 14,055,889 Village Roadshow Limited 'A' (Preferred) 15,696,830 0.9
Property 5,714,021 Lend Lease Corporation Limited 73,101,317 4.0
Telecommunications 539,000 ++Austar United Communications Limited 1,826,486 0.1
3,594,000 Telstra Corporation Limited 8,199,783 0.4
-------------- ------
10,026,269 0.5
Total Investments in Australia (Cost--$121,838,984) 136,074,291 7.5
Hong Kong
Banking 3,400,729 HSBC Holdings PLC 38,935,649 2.1
Computers 20,000,000 Legend Holdings Limited 19,370,646 1.1
Conglomerates 5,471,438 Hutchison Whampoa Limited 68,785,156 3.8
12,056,000 Wharf (Holdings) Ltd. 21,574,692 1.2
-------------- ------
90,359,848 5.0
Telecommunications 2,000,000 ++Pacific Century CyberWorks Limited 3,951,099 0.2
Total Investments in Hong Kong (Cost--$129,962,572) 152,617,242 8.4
India
Broadcast/Media 620,000 BITV 0 0.0
Diversified Mutual Funds 7,000 ++UTI Master Plus 91-B 3,628 0.0
Software 522,618 NIIT Limited 25,858,609 1.4
1,140,500 Satyam Computer Services Limited 76,138,858 4.2
-------------- ------
101,997,467 5.6
Total Investments in India (Cost--$102,365,389) 102,001,095 5.6
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Held/ Percent of
Industry Face Amount Investments Value Net Assets
<S> <C> <S> <C> <C>
New Zealand
Diversified 43,229,285 Guinness Peat Group PLC $ 25,440,434 1.4%
Total Investments in New Zealand (Cost--$24,265,792) 25,440,434 1.4
Singapore
Banking 3,832,400 Oversea-Chinese Banking Corporation Ltd. 26,376,842 1.5
Conglomerates 1,200,000 ++Pacific Century Regional Developments Limited 16,379,410 0.9
Total Investments in Singapore (Cost--$49,402,392) 42,756,252 2.4
South Korea
Banking 92,515 ++Hana Bank (GDR)(b) 578,219 0.0
Energy 495,000 SK Corporation 9,078,496 0.5
Iron and Steel 325,000 Pohang Iron & Steel Company Ltd. (ADR)(a) 7,800,000 0.4
Telecommunications 471,500 Korea Telecom Corporation (ADR)(a) 22,808,813 1.3
31,500 SK Telecom Co. Ltd. 10,311,428 0.6
90,000 SK Telecom Co. Ltd. (ADR)(a)(c) 3,268,125 0.2
-------------- ------
36,388,366 2.1
Total Investments in South Korea (Cost--$51,864,995) 53,845,081 3.0
Taiwan
Banking 20,847,680 United World Chinese Commercial Bank 19,764,684 1.1
Broadcast/Media 3,100 ++GigaMedia Ltd. 37,200 0.0
Electronics 3,507,500 D-Link Corporation 8,199,351 0.4
757,860 Synnex Technology International Corporation (GDR)(b) 15,839,274 0.9
7,620,000 ++United Microelectronics Corporation, Ltd. 21,152,922 1.2
1,865,000 ++Via Technologies Inc. 28,762,175 1.6
US$ 3,050,000 Winbond Electronics Corporation, 1% due 11/04/2002 7,398,080 0.4
-------------- ------
81,351,802 4.5
Total Investments in Taiwan (Cost--$96,087,085) 101,153,686 5.6
Short-Term Securities
Commercial US$ 8,226,000 Associates Corporation of North America, 7% due 7/03/2000 8,222,801 0.4
Paper*
Total Investments in Short-Term Securities
(Cost--$8,222,801) 8,222,801 0.4
Total Investments (Cost--$1,609,746,603) 1,789,327,308 98.6
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Nominal Value Percent of
Covered by Options Issue Value Net Assets
<S> <C> <S> <C> <C>
Call Options Written
42,000 Softbank Corp., expiring March 2001 at US$ 62.85 $ (641,663) 0.0%
Total Call Options Written
(Premiums Received--$5,033,006) (641,663) 0.0
Total Investments, Net of Options Written (Cost--$1,604,713,597) 1,788,685,645 98.6
Unrealized Appreciation on Forward Foreign Exchange Contracts** 17,190,031 0.9
Other Assets Less Liabilities 8,721,974 0.5
-------------- ------
Net Assets $1,814,597,650 100.0%
============== ======
(a)American Depositary Receipts (ADR).
(b)Global Depositary Receipts (GDR).
(c)The security may be offered and sold to "qualified institutional
buyers" under Rule 144A of the Securities Act of 1933.
++Non-income producing security.
*Commercial Paper is traded on a discount basis; the interest rate
shown reflects the discount rate paid at the time of purchase by the
Fund.
**Forward foreign exchange contracts as of June 30, 2000 were as follows:
Foreign Expiration Unrealized
Currency Sold Date Appreciation
YEN 34,845,609,701 October 2000 $ 17,190,031
--------------
Total Unrealized Appreciation on Forward
Foreign Exchange Contracts--Net
(US Commitment--$353,529,499) $ 17,190,031
==============
See Notes to Financial Statements.
</TABLE>
PORTFOLIO INFORMATION
As of June 30, 2000
Percent of
Ten Largest Holdings Net Assets
Rohm Company Ltd. 4.4%
Satyam Computer Services Limited 4.2
Lend Lease Corporation Limited 4.0
Yamanouchi Pharmaceutical Co., Ltd. 4.0
Murata Manufacturing Co., Ltd. 3.9
Hutchison Whampoa Limited 3.8
Canon, Inc. 3.4
Shin-Etsu Chemical Co., Ltd. 3.3
The Furukawa Electric Co., Ltd. 3.2
Fujitsu Limited 2.9
Percent of
Ten Largest Industries Net Assets
Electrical Equipment 11.8%
Property & Casualty Insurance 10.6
Office Equipment 6.3
Conglomerates 5.9
Software 5.6
Utilities--Electric 5.0
Banking 4.7
Telecommunications 4.7
Consumer Electronics 4.6
Electronics 4.5
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of June 30, 2000
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$1,609,746,603) $1,789,327,308
Unrealized appreciation on forward foreign exchange contracts 17,190,031
Cash 2,578
Receivables:
Securities sold $ 7,945,021
Dividends 5,611,875
Capital shares sold 1,403,219
Interest 12,452 14,972,567
--------------
Prepaid registration fees and other assets 58,404
--------------
Total assets 1,821,550,888
--------------
Liabilities: Options written, at value (premiums received--$5,033,006) 641,663
Payables:
Capital shares redeemed 3,295,704
Investment adviser 831,552
Distributor 737,582 4,864,838
--------------
Accrued expenses and other liabilities 1,446,737
--------------
Total liabilities 6,953,238
--------------
Net Assets: Net assets $1,814,597,650
==============
Net Assets Class A Shares of Common Stock, $.10 par value, 100,000,000 shares
Consist of: authorized $ 2,586,498
Class B Shares of Common Stock, $.10 par value, 200,000,000 shares
authorized 2,625,089
Class C Shares of Common Stock, $.10 par value, 100,000,000 shares
authorized 503,305
Class D Shares of Common Stock, $.10 par value, 100,000,000 shares
authorized 754,879
Paid-in capital in excess of par 1,217,695,985
Accumulated investment loss--net (1,537,401)
Undistributed realized capital gains on investments and foreign
currency transactions--net 390,865,180
Unrealized appreciation on investments and foreign currency
transactions--net 201,104,115
--------------
Net assets $1,814,597,650
==============
Net Asset Value: Class A--Based on net assets of $750,376,564 and 25,864,975 shares
outstanding $ 29.01
==============
Class B--Based on net assets of $711,951,288 and 26,250,886 shares
outstanding $ 27.12
==============
Class C--Based on net assets of $133,918,077 and 5,033,053 shares
outstanding $ 26.61
==============
Class D--Based on net assets of $218,351,721 and 7,548,791 shares
outstanding $ 28.93
==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Six Months Ended June 30, 2000
<S> <S> <C> <C>
Investment Dividends (net of $1,140,570 foreign withholding tax) $ 10,090,909
Income: Interest and discount earned 1,501,891
--------------
Total income 11,592,800
--------------
Expenses: Investment advisory fees $ 6,027,908
Account maintenance and distribution fees--Class B 3,939,412
Account maintenance and distribution fees--Class C 718,534
Custodian fees 709,734
Transfer agent fees--Class B 492,204
Transfer agent fees--Class A 437,761
Account maintenance fees--Class D 308,562
Transfer agent fees--Class D 129,198
Transfer agent fees--Class C 92,209
Accounting services 81,245
Registration fees 58,723
Printing and shareholder reports 51,919
Professional fees 50,755
Directors' fees and expenses 11,693
Pricing fees 6,209
Other 14,135
--------------
Total expenses 13,130,201
--------------
Investment loss--net (1,537,401)
--------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 402,673,228
(Loss) on Foreign currency transactions--net (8,229,296) 394,443,932
Investments & --------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net (699,224,292)
Foreign currency transactions--net 29,363,202 (669,861,090)
-------------- --------------
Net Decrease in Net Assets Resulting from Operations $ (276,954,559)
==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
June 30, December 31,
Increase (Decrease) in Net Assets: 2000 1999
<S> <S> <C> <C>
Operations: Investment loss--net $ (1,537,401) $ (3,186,156)
Realized gain on investments and foreign currency
transactions--net 394,443,932 82,829,378
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net (669,861,090) 933,388,478
-------------- --------------
Net increase (decrease) in net assets resulting from operations (276,954,559) 1,013,031,700
-------------- --------------
Capital Share Net increase (decrease) in net assets derived from capital share
Transactions: transactions (208,982,581) 197,731,808
-------------- --------------
Net Assets: Total increase (decrease) in net assets (485,937,140) 1,210,763,508
Beginning of period 2,300,534,790 1,089,771,282
-------------- --------------
End of period $1,814,597,650 $2,300,534,790
============== ==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights
<CAPTION>
Class A++
For the
Six Months
The following per share data and ratios have been derived Ended
from information provided in the financial statements. June 30, For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 33.12 $ 17.64 $ 16.97 $ 21.58 $ 22.16
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .05 .06 .10 .08 .11
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (4.16) 15.42 1.33 (1.48) 1.21
---------- ---------- ---------- ---------- ----------
Total from investment operations (4.11) 15.48 1.43 (1.40) 1.32
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net -- -- --++++ -- --
In excess of investment income--net -- -- (.76) (.99) (1.22)
Realized gain on investments--net -- -- -- (2.22) (.68)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions -- -- (.76) (3.21) (1.90)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 29.01 $ 33.12 $ 17.64 $ 16.97 $ 21.58
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share (12.41%)+++ 87.76% 8.46% (6.35%) 6.09%
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses .80%* .85% .88% .87% .87%
Net Assets: ========== ========== ========== ========== ==========
Investment income--net .34%* .28% .57% .37% .47%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period
Data: (in thousands) $ 750,377 $ 986,913 $ 449,725 $ 537,671 $ 642,523
========== ========== ========== ========== ==========
Portfolio turnover 22.12% 28.84% 12.26% 19.69% 10.65%
========== ========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
++++Amount is less than $.01 per share.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights (continued)
<CAPTION>
Class B++
For the
Six Months
The following per share data and ratios have been derived Ended
from information provided in the financial statements. June 30, For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 31.12 $ 16.74 $ 16.11 $ 20.59 $ 21.22
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment loss--net (.09) (.16) (.08) (.14) (.13)
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (3.91) 14.54 1.25 (1.39) 1.17
---------- ---------- ---------- ---------- ----------
Total from investment operations (4.00) 14.38 1.17 (1.53) 1.04
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net -- -- --++++ -- --
In excess of investment
income--net -- -- (.54) (.73) (.99)
Realized gain on investments
--net -- -- -- (2.22) (.68)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions -- -- (.54) (2.95) (1.67)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 27.12 $ 31.12 $ 16.74 $ 16.11 $ 20.59
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share (12.85%)+++ 85.90% 7.29% (7.31%) 5.00%
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses 1.82%* 1.88% 1.92% 1.90% 1.90%
Net Assets: ========== ========== ========== ========== ==========
Investment loss--net (.66%)* (.76%) (.50%) (.66%) (.56%)
========== ========== ========== ========== ==========
Supplemental Net assets, end of period
Data: (in thousands) $ 711,951 $ 888,735 $ 489,047 $ 775,068 $1,217,549
========== ========== ========== ========== ==========
Portfolio turnover 22.12% 28.84% 12.26% 19.69% 10.65%
========== ========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
++++Amount is less than $.01 per share.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights (continued)
<CAPTION>
Class C++
For the
Six Months
The following per share data and ratios have been derived Ended
from information provided in the financial statements. June 30, For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 30.53 $ 16.42 $ 15.83 $ 20.30 $ 20.97
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investmentloss--net (.09) (.17) (.08) (.14) (.13)
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (3.83) 14.28 1.23 (1.36) 1.16
---------- ---------- ---------- ---------- ----------
Total from investment operations (3.92) 14.11 1.15 (1.50) 1.03
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net -- -- --++++ -- --
In excess of investment income--net -- -- (.56) (.75) (1.02)
Realized gain on investments--net -- -- -- (2.22) (.68)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions -- -- (.56) (2.97) (1.70)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 26.61 $ 30.53 $ 16.42 $ 15.83 $ 20.30
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share (12.84%)+++ 85.93% 7.26% (7.28%) 5.00%
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses 1.82%* 1.88% 1.92% 1.90% 1.91%
Net Assets: ========== ========== ========== ========== ==========
Investment loss--net (.66%)* (.79%) (.50%) (.67%) (.58%)
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in
Data: thousands) $ 133,918 $ 150,153 $ 53,116 $ 73,656 $ 98,925
========== ========== ========== ========== ==========
Portfolio turnover 22.12% 28.84% 12.26% 19.69% 10.65%
========== ========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
++++Amount is less than $.01 per share.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights (concluded)
<CAPTION>
Class D++
For the
Six Months
The following per share data and ratios have been derived Ended
from information provided in the financial statements. June 30, For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 33.06 $ 17.65 $ 16.98 $ 21.57 $ 22.14
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investmentincome (loss)--net .02 --++++ .05 .03 .04
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (4.15) 15.41 1.33 (1.47) 1.23
---------- ---------- ---------- ---------- ----------
Total from investment operations (4.13) 15.41 1.38 (1.44) 1.27
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net -- -- --++++ -- --
In excess of investment income--net -- -- (.71) (.93) (1.16)
Realized gain on investments--net -- -- -- (2.22) (.68)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions -- -- (.71) (3.15) (1.84)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 28.93 $ 33.06 $ 17.65 $ 16.98 $ 21.57
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share (12.49%)+++ 87.31% 8.14% (6.55%) 5.84%
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses 1.05%* 1.10% 1.13% 1.12% 1.12%
Net Assets: ========== ========== ========== ========== ==========
Investment income (loss)--net .12%* (.02%) .29% .11% .16%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $ 218,352 $ 274,734 $ 97,883 $ 119,219 $ 136,626
Data: ========== ========== ========== ========== ==========
Portfolio turnover 22.12% 28.84% 12.26% 19.69% 10.65%
========== ========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
++++Amount is less than $.01 per share.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Pacific Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940 as a non-diversified, open-end
management investment company. The Fund's financial statements are
prepared in accordance with accounting principles generally accepted
in the United States of America, which may require the use of
management accruals and estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of
management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal,
recurring nature. The Fund offers four classes of shares under the
Merrill Lynch Select Pricing SM System. Shares of Class A and Class D
are sold with a front-end sales charge. Shares of Class B and Class
C may be subject to a contingent deferred sales charge. All classes
of shares have identical voting, dividend, liquidation and other
rights and the same terms and conditions, except that Class B, Class
C and Class D Shares bear certain expenses related to the account
maintenance of such shares, and Class B and Class C Shares also bear
certain expenses related to the distribution of such shares. Each
class has exclusive voting rights with respect to matters relating
to its account maintenance and distribution expenditures. The
following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of investments--Portfolio securities that are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. However, in certain circumstances, the
Fund will value a security traded on a Japanese stock exchange based
upon the last bid or ask price as reported on such exchange after
trading in such security has been halted for the day. Japanese stock
exchanges may impose limits, based on a percentage of a security's
value, on the amount such security may move in a single day. If the
security reaches its limit during the day, further trading is
halted. However, a bid or ask quotation may be reported following
the suspension of trading. In situations where both a bid and ask
price are reported following a trading suspension due to the
circumstances described above, the Fund will utilize the bid price
for valuation purposes. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Board of Directors as
the primary market. Securities traded in the over-the-counter market
are valued at the last available bid price prior to the time of
valuation. Securities that are traded both in the over-the-counter
market and on a stock exchange are valued according to the broadest
and most representative market. Options written or purchased are
valued at the last sale price in the case of exchange-traded
options. In the case of options traded in the over-the-counter
market, valuation is the last asked price (options written) or the
last bid price (options purchased). Short-term securities are valued
at amortized cost, which approximates market value. Other
investments, including futures contracts and related options, are
stated at market value. Securities and assets for which market
quotations are not readily available are valued at their fair value
as determined in good faith by or under the direction of the Fund's
Board of Directors.
(b) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies to increase or decrease the level of
risk to which the Fund is exposed more quickly and efficiently than
transactions in other types of instruments. Losses may arise due to
changes in the value of the contract or if the counterparty does not
perform under the contract.
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Fund's records. However, the effect on
operations is recorded from the date the Fund enters into such
contracts.
* Options--The Fund is authorized to write and purchase call and put
options. When the Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current value of the option written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
Written and purchased options are non-income producing investments.
* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts.
Upon entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which
the transaction is effected. Pursuant to the contract, the Fund
agrees to receive from or pay to the broker an amount of cash equal
to the daily fluctuation in value of the contract. Such receipts or
payments are known as variation margin and are recorded by the Fund
as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the
time it was closed.
(c) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Dividend income is recorded on the ex-
dividend dates. Dividends from foreign securities where the ex-
dividend date may have passed are subsequently recorded when the
Fund has determined the ex-dividend date. Interest income (including
amortization of discount) is recognized on the accrual basis.
Realized gains and losses on security transactions are determined on
the identified cost basis.
(e) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required. Under the applicable foreign tax law, a
withholding tax may be imposed on dividends, interest and capital
gains at various rates.
(f) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(g) Dividends and distributions to shareholders--Dividends and
distributions paid by the Fund are recorded on the ex-dividend
dates.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Investment Managers, L.P. ("MLIM"). The general
partner of MLIM is Princeton Services, Inc. ("PSI"), an indirect
wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."),
which is the limited partner. The Fund has also entered into a
Distribution Agreement and Distribution Plans with FAM Distributors,
Inc. ("FAMD" or the "Distributor"), which is a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
MLIM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee of .60% of the average daily
net assets of the Fund.
Pursuant to the Distribution Plans adopted by the Fund in accordance
with Rule 12b-1 under the Investment Company Act of 1940, the Fund
pays the Distributor ongoing account maintenance and distribution
fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
Account Distribution
Maintenance Fee Fee
Class B .25% .75%
Class C .25% .75%
Class D .25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML &
Co., also provides account maintenance and distribution services to
the Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
For the six months ended June 30, 2000, FAMD earned underwriting
discounts and direct commissions and MLPF&S earned dealer
concessions on sales of the Fund's Class A and Class D Shares
as follows:
FAMD MLPF&S
Class A $ 4,139 $ 13,944
Class D $18,557 $228,368
For the six months ended June 30, 2000, MLPF&S received contingent
deferred sales charges of $601,278 and $67,630 relating to
transactions in Class B and Class C Shares, respectively.
Furthermore, MLFP&S received contingent deferred sales charges of
$135,425 and $53,406 relating to transactions subject to front-end
sales charge waivers in Class A and Class D Shares, respectively.
In addition, MLPF&S received $153,890 in commissions on the
execution of portfolio security transactions for the Fund for the
six months ended June 30, 2000.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLIM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLIM, PSI, FDS, FAMD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended June 30, 2000 were $434,971,488 and
$601,466,771, respectively.
Net realized gains (losses) for the six months ended June 30, 2000
and net unrealized gains (losses) as of June 30, 2000 were as
follows:
Realized Unrealized
Gains Gains
(Losses) (Losses)
Investments:
Long-term $ 402,673,395 $ 179,580,705
Short-term (167) --
Options written -- 4,391,343
------------- -------------
Total investments 402,673,228 183,972,048
------------- -------------
Currency transactions:
Options purchased (7,973,000) --
Foreign currency
transactions (256,296) (57,964)
Forward foreign
exchange contracts -- 17,190,031
------------- -------------
Total currency
transactions (8,229,296) 17,132,067
------------- -------------
Total $ 394,443,932 $ 201,104,115
============= =============
Transactions in call options written for the six months ended June
30, 2000 were as follows:
Nominal Value
Covered by Premiums
Written Options Received
Outstanding call options
written at beginning of
period -- --
Options written $ 42,000 $ 5,033,006
------------- -------------
Outstanding call options
written at end of period $ 42,000 $ 5,033,006
============= =============
As of June 30, 2000, net unrealized appreciation for Federal income
tax purposes aggregated $183,972,048, of which $475,940,641 related
to appreciated securities and $291,968,593 related to depreciated
securities. At June 30, 2000, the aggregate cost of investments, net
of options written for Federal income tax purposes was
$1,604,713,597.
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
4. Capital Share Transactions:
Net increase (decrease) in net assets derived from capital share
transactions was $(208,982,581) and $197,731,808 for the six months
ended June 30, 2000 and the year ended December 31, 1999,
respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Six Months Dollar
Ended June 30, 2000 Shares Amount
Shares sold 9,431,567 $ 283,965,170
Shares redeemed (13,365,727) (409,018,453)
-------------- -------------
Net decrease (3,934,160) $(125,053,283)
============== =============
Class A Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 19,608,935 $ 432,209,205
Shares redeemed (15,311,566) (344,528,395)
-------------- -------------
Net increase 4,297,369 $ 87,680,810
============== =============
Class B Shares for the Six Months Dollar
Ended June 30, 2000 Shares Amount
Shares sold 2,933,209 $ 84,165,638
Automatic conversion of
shares (727,209) (20,498,369)
Shares redeemed (4,514,550) (128,238,369)
-------------- -------------
Net decrease (2,308,550) $ (64,571,100)
============== =============
Class B Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 10,091,024 $ 223,461,220
Automatic conversion of
shares (1,076,563) (22,631,130)
Shares redeemed (9,667,997) (194,321,010)
-------------- -------------
Net increase (decrease) (653,536) $ 6,509,080
============== =============
Merrill Lynch Pacific Fund, Inc.
June 30, 2000
Class C Shares for the Six Months Dollar
Ended June 30, 2000 Shares Amount
Shares sold 1,481,216 $ 41,450,554
Shares redeemed (1,366,287) (38,108,407)
-------------- -------------
Net increase 114,929 $ 3,342,147
============== =============
Class C Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 3,426,762 $ 74,395,683
Shares redeemed (1,742,506) (34,953,502)
-------------- -------------
Net increase 1,684,256 $ 39,442,181
============== =============
Class D Shares for the Six Months Dollar
Ended June 30, 2000 Shares Amount
Shares sold 3,474,612 $ 103,850,207
Automatic conversion of
shares 682,906 20,498,369
-------------- -------------
Total issued 4,157,518 124,348,576
Shares redeemed (4,918,211) (147,048,921)
-------------- -------------
Net decrease (760,693) $ (22,700,345)
============== =============
Class D Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 4,462,837 $ 100,318,751
Automatic conversion of
shares 1,016,993 22,631,130
-------------- -------------
Total issued 5,479,830 122,949,881
Shares redeemed (2,716,286) (58,850,144)
-------------- -------------
Net increase 2,763,544 $ 64,099,737
============== =============
5. Short Term Borrowings:
On December 3, 1999, the Fund, along with certain other funds
managed by MLIM, entered into a one-year, unsecured $1,000,000,000
credit agreement with The Bank of New York and certain other
institutions party thereto. The funds may borrow money for temporary
or emergency purposes to fund shareholders redemptions. The
agreement bears interest at the Federal Funds rate plus .50%. The
Fund did not borrow from the facility during the six months ended
June 30, 2000.
