N-Q 1 devcap.txt MERRILL LYNCH DEVELOPING CAPITAL MARKETS FUND, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act File Number 811-5723 Name of Fund: Merrill Lynch Developing Capital Markets Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., Chief Executive Officer, Merrill Lynch Developing Capital Markets Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 06/30/06 Date of reporting period: 07/01/05 - 09/30/05 Item 1 - Schedule of Investments Merrill Lynch Developing Capital Markets Fund, Inc. Schedule of Investments as of September 30, 2005 (in U.S. dollars)
Shares Africa Industry Held Common Stocks Value South Air Freight & 110,465 Imperial Holdings Ltd. $ 2,310,874 Africa - 8.4% Logistics - 1.0% Commercial Banks - 1.8% 274,956 ABSA Group Ltd. 4,056,636 Commercial Services & 1,872,342 Mvelaphanda Group Ltd. 2,294,154 Supplies - 1.0% Diversified 144,100 Telkom SA Ltd. 2,859,017 Telecommunication Services - 1.3% Household Durables - 0.5% 157,770 Lewis Group Ltd. 1,067,070 Metals & Mining - 1.1% 54,950 AngloGold Ashanti Ltd. 2,384,621 Wireless Telecommunication 455,950 MTN Group Ltd. 3,778,726 Services - 1.7% Total Common Stocks in Africa - 8.4% 18,751,098 Europe Czech Electric Utilities - 1.5% 110,420 CEZ 3,335,446 Republic - 1.5% Total Common Stocks in the Czech Republic 3,335,446 Poland - 1.9% Oil, Gas & Consumable 263,520 Polish Oil & Gas Co. (a) 324,592 Fuels - 1.9% 190,970 Polski Koncern Naftowy Orlen SA 3,928,311 --------------- 4,252,903 Total Common Stocks in Poland 4,252,903 Russia - 7.8% Diversified 115,100 AFK Sistema (a)(b) 2,819,950 Telecommunication Services - 1.3% Metals & Mining - 1.5% 44,170 MMC Norilsk Nickel (b) 3,504,889 Oil, Gas & Consumable 79,218 LUKOIL (b) 4,574,840 Fuels - 4.5% 82,200 Surgutneftegaz (b) 5,430,870 --------------- 10,005,710 Wireless Telecommunication 28,700 Mobile Telesystems (b) 1,167,516 Services - 0.5% Total Common Stocks in Russia 17,498,065 Turkey - 2.8% Commercial Banks - 1.8% 311,613 Denizbank AS 1,667,185 339,560 Turkiye Is Bankasi-C 2,359,195 --------------- 4,026,380 Construction & 204,942 Enka Insaat Ve Sanayi AS 2,238,638 Engineering - 1.0% Total Common Stocks in Turkey 6,265,018 Total Common Stocks in Europe - 14.0% 31,351,432 Latin America Brazil - 17.6% Airlines - 0.7% 49,850 Gol - Linhas Aereas Inteligentes SA (b) 1,617,632 Commercial Banks - 2.5% 51,944 Banco Bradesco SA (b) 2,541,100 59,140 Uniao de Bancos Brasileiros SA (b) 3,110,764 --------------- 5,651,864 Diversified 99,630 Tele Norte Leste Participacoes SA 2,269,159 Telecommunication Services - 1.0% Electric Utilities - 0.8% 49,737 Cia Energetica de Minas Gerais (b) 1,893,985 Metals & Mining - 3.5% 199,066 Companhia Vale do Rio Doce (b) 7,745,658 Multiline Retail - 1.4% 60,990,000 Lojas Americanas SA 1,413,807 69,716 Lojas Renner SA (a) 1,725,915 --------------- 3,139,722 Oil, Gas & Consumable 168,993 Petroleo Brasileiro SA (b) 10,773,304 Fuels - 4.8% Personal Products - 0.6% 32,170 Natura Cosmeticos SA 1,288,740 Real Estate - 0.8% 113,797 Cyrela Brazil Realty SA 942,482 9,543 Cyrela Brazil Realty SA (a)(b) 781,572 --------------- 1,724,054 Transportation 36,404 All America Latina Logistica SA 1,450,163 Infrastructure - 1.5% 3 All America Latina Logistica SA Preferred Shares 19 65,950 Cia de Concessoes Rodoviarias 1,883,522 --------------- 3,333,704 Total Common Stocks in Brazil 39,437,822 Chile - 1.0% Independent Power Producers & 72,130 Empresa Nacional de Electricidad SA (b) 2,150,195 Energy Traders - 1.0% Total Common Stocks in Chile 2,150,195 Mexico - 5.9% Construction & 2,454,300 Empresas ICA Sociedad Controladora SA de CV (a) 935,414 Engineering - 0.4% Food & Staples 237,914 Wal-Mart de Mexico SA de CV 1,209,906 Retailing - 0.5% Household Durables - 2.1% 1,472,016 Corp GEO SA de CV Series B (a) 4,572,898 Metals & Mining - 0.5% 551,000 Grupo Mexico SA de CV 1,083,232 Wireless Telecommunication 202,803 America Movil SA de CV (b) 5,337,775 Services - 2.4% Total Common Stocks in Mexico 13,139,225 Total Common Stocks in Latin America - 24.5% 54,727,242 Middle East Egypt - 0.5% Wireless Telecommunication 66,400 Vodafone Egypt Telecommunications Co. SAE 1,095,369 Services - 0.5% Total Common Stocks in Egypt 1,095,369 Israel - 2.6% Commercial Banks - 1.7% 576,990 Bank Hapoalim Ltd. 2,244,199 302,282 United Mizrahi Bank Ltd. (a) 1,566,974 --------------- 3,811,173 Software - 0.9% 86,065 Check Point Software Technologies (a) 2,093,101 Total Common Stocks in Israel 5,904,274 Oman - 0.6% Commercial Banks - 0.6% 49,280 Bank Muscat (a)(b) 1,293,600 Total Common Stocks in Oman 1,293,600 Total Common Stocks in the Middle East - 3.7% 8,293,243 Pacific Basin/Asia China - 3.7% Diversified 1,370,000 China Netcom Group Corp. Hong Kong Ltd. 2,357,578 Telecommunication Services - 1.0% Food Products - 0.9% 3,007,500 People's Food Holdings Ltd. 1,958,124 Oil, Gas & Consumable 5,402,500 CNOOC Ltd. 3,934,662 Fuels - 1.8% Total Common Stocks in China 8,250,364 India - 1.1% Chemicals - 0.0% 110 Reliance Industries Ltd. (Compulsory Demat Shares) 1,985 Commercial Banks - 1.1% 200 State Bank of India Ltd. 4,270 396,100 UTI Bank Ltd. 2,392,006 --------------- 2,396,276 Total Common Stocks in India 2,398,261 Malaysia - 2.1% Automobiles - 0.9% 855,900 Proton Holdings BHD 1,873,488 Commercial Banks - 1.2% 1,819,190 Commerce Asset Holdings BHD 2,702,962 Construction & 43,000 IJM Corp. BHD 55,447 Engineering - 0.0% Food Products - 0.0% 17,200 IJM Plantations BHD 5,613 Total Common Stocks in Malaysia 4,637,510 Philippines - 0.6% Electric Utilities - 0.6% 3,817,560 Manila Electric Co. (a) 1,430,563 Total Common Stocks in the Philippines 1,430,563 South Building Products - 0.8% 8,539 KCC Corp. 1,762,732 Korea - 19.1% Commercial Banks - 4.6% 256,100 Industrial Bank of Korea 3,245,819 119,551 Kookmin Bank 7,059,421 --------------- 10,305,240 Construction & 50,900 GS Engineering & Construction Corp. 2,033,068 Engineering - 0.9% Diversified Financial 96,484 GS Holdings Corp. 2,464,210 Services - 1.1% Diversified Telecommunication 25,500 KT Corp. 1,078,517 Services - 1.0% 49,567 KT Corp. (b) 1,115,258 --------------- 2,193,775 Electronic Equipment & 102,060 LS Industrial Systems Co. Ltd. 2,841,805 Instruments - 1.3% Oil, Gas & Consumable 41,300 SK Corp. 2,399,088 Fuels - 1.1% Semiconductors & 23,543 Samsung Electronics Co., Ltd. 13,291,679 Semiconductor Equipment - 5.9% Trading Companies & 195,930 Samsung Corp. 3,395,618 Distributors - 1.5% Wireless Telecommunication 10,390 SK Telecom Co., Ltd. 2,020,139 Services - 0.9% Total Common Stocks in South Korea 42,707,354 Sri Lanka - 0.4% Diversified 4,610,100 Dialog Telekom Ltd. (a) 898,544 Telecommunication Services - 0.4% Total Common Stocks in Sri Lanka 898,544 Taiwan - 11.8% Capital Markets - 0.8% 4,606,000 Capital Securities Corp. 1,818,222 Commercial Banks - 0.1% 480,687 Taishin Financial Holdings Co., Ltd. 281,730 Communications 2,253,900 D-Link Corp. 2,336,387 Equipment - 1.0% Computers & 1,265,250 LITE-ON IT Corp. 1,496,469 Peripherals - 2.5% 2,446,541 Quanta Computer, Inc. 4,010,542 --------------- 5,507,011 Electronic Equipment & 1,859,574 Delta Electronics, Inc. 3,177,226 Instruments - 3.2% 1,172,733 Optimax Technology Corp. 1,908,290 1,210,826 Wintek Corp. 1,948,384 --------------- 7,033,900 Health Care Equipment & 505,760 Pihsiang Machinery Manufacturing Co., Ltd. 816,886 Supplies - 0.4% Industrial 2,752,920 Far Eastern Textile Co. Ltd. 1,663,258 Conglomerates - 0.7% Semiconductors & 4,362,970 Advanced Semiconductor Engineering Inc. 2,944,977 Semiconductor 5,956,676 Pro Mos Technologies Inc. 1,759,064 Equipment - 2.1% --------------- 4,704,041 Wireless Telecommunication 2,305,500 Taiwan Cellular Corp. 2,195,350 Services - 1.0% Total Common Stocks in Taiwan 26,356,785 Thailand - 4.4% Commercial Banks - 2.0% 740,790 Bangkok Bank PCL Foreign Shares 2,056,497 7,513,900 Bank of Ayudhya PCL 2,451,875 --------------- 4,508,372 Media - 0.4% 611,100 United Broadcasting Corp. PCL (a)(b) 337,805 1,137,900 United Broadcasting Corp. PCL Foreign Shares (a) 629,011 --------------- 966,816 Oil, Gas & Consumable 1,264,400 Thai Oil PCL Foreign Shares 2,309,266 Fuels - 1.0% Wireless Telecommunication 835,000 Advanced Info Service PCL Foreign Shares 2,196,031 Services - 1.0% Total Common Stocks in Thailand 9,980,485 Total Common Stocks in the Pacific Basin/Asia - 43.2% 96,659,866 Total Common Stocks (Cost - $166,608,540) - 93.8% 209,782,881 Africa Preferred Stocks South Diversified Financial 8,635 Lereko Mobility Proprietary Ltd. 51,598 Africa - 0.0% Services - 0.0% Total Preferred Stocks (Cost - $40,529) - 0.0% 51,598 Pacific Basin/Asia Structured Notes India - 6.2% Capital Markets - 3.5% Deutsche Bank AG London: 81,330 (Bharat Heavy Electricals), due 6/18/2007 2,261,958 181,710 (Tata Motors Ltd.) due 6/18/2007 2,205,578 106,109 (Voltas Ltd.), due 11/26/2007 1,145,585 310,280 UBS AG Zero-Coupon Equity-Linked Note (Jaiprakash Associates Ltd.), due 2/28/2006 2,109,904 --------------- 7,723,025 Diversified Financial 64,840 Citigroup Global Markets Holdings, Inc. (Infosys Services - 2.7% Technologies Ltd.), due 1/19/2009 3,699,122 289,570 Morgan Stanley (Bharti Tele-ventures Ltd.), due 8/10/2007 2,304,948 --------------- 6,004,070 Total Structured Notes (Cost - $11,081,862) - 6.2% 13,727,095 Beneficial Interest Short-Term Securities $ 1,093,287 Merrill Lynch Liquidity Series, LLC Cash Sweep Series I (c) 1,093,287 Total Short-Term Securities (Cost - $1,093,287) - 0.5% 1,093,287 Total Investments (Cost - $178,824,218*) - 100.5% 224,654,861 Liabilities in Excess of Other Assets - (0.5%) (1,022,377) --------------- Net Assets - 100.0% $ 223,632,484 =============== * The cost and unrealized appreciation (depreciation) of investments as of September 30, 2005, as computed for federal income tax purposes, were as follows: Aggregate cost $ 179,357,169 ================== Gross unrealized appreciation $ 50,021,163 Gross unrealized depreciation (4,723,471) ------------------ Net unrealized appreciation $ 45,297,692 ================== (a) Non-income producing security. (b) Depositary receipts. (c) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: Net Interest Affiliate Activity Income Merrill Lynch Liquidity Series, LLC Cash Sweep Series I $ (2,819,675) $ 19,462 For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
Item 2 - Controls and Procedures 2(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3 - Exhibits Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Merrill Lynch Developing Capital Markets Fund, Inc. By: /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr. Chief Executive Officer Merrill Lynch Developing Capital Markets Fund, Inc. Date: November 17, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr. Chief Executive Officer Merrill Lynch Developing Capital Markets Fund, Inc. Date: November 17, 2005 By: /s/ Donald C. Burke ----------------------- Donald C. Burke Chief Financial Officer Merrill Lynch Developing Capital Markets Fund, Inc. Date: November 17, 2005