CMA
CMA Money Fund
Semi-Annual Report
September 30, 1995
MERRILL LYNCH BULL LOGO
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, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
CMA Money Fund
Box 9011
Princeton, NJ 08543-9011
DEAR SHAREHOLDER:
For the six-month period ended September 30, 1995, CMA Money Fund
paid shareholders a net annualized dividend of 5.59%*. As of
September 30, 1995, the Fund's 7-day yield was 5.33%.
The Environment
After losing momentum through the second calendar quarter, it now
appears that the US economy has resumed a moderate growth trend.
Gross domestic product growth for the three months ended June 30 was
revised to show that the economy expanded at a 1.1% pace, rather
than the 0.5% rate that was originally reported. The employment
report for August exceeded consensus expectations, although most of
the new jobs created were in the service sector, reflecting the
ongoing sluggishness in manufacturing. However, durable goods orders
rebounded somewhat in August, supported by stronger automobile
sales. Reflecting the trend of renewed economic growth--and
continued containment of inflationary pressures--the Federal Reserve
Board signaled no shift in monetary policy following its September
meeting.
One of the major developments during the latter part of the period
under review was the strengthening of the US dollar relative to the
yen and the Deutschemark. Improving interest rate differentials
favoring the US currency, combined with coordinated central bank
intervention and more positive investor sentiment, have helped to
bolster the dollar in foreign exchange markets. Other factors that
appear to be improving the US dollar's outlook in the near term are
a pick-up in capital flows to the United States and the prospect of
increased capital outflows from Japan. However, it remains to be
seen if the US dollar's strengthening trend can continue without
significant improvements in the US budget and trade deficits.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
Portfolio Matters
Since our last report to shareholders, CMA Money Fund's average
portfolio maturity ranged from a low of 58 days to a high of 89
days. This range reflects the transition from our earlier cautious
stance to a more constructive one in the face of weaker economic
performance and the bias of the Federal Reserve Board toward an
easier monetary policy.
Our outlook began to turn constructive in April, when evidence of a
weakening economy began to appear. Specifically, the report on March
employment showed a sharp drop in non-farm payrolls, and other
reports showed a moderation in consumer spending. Accordingly, we
gradually increased the Fund's average life to the low 70-day range
by month-end. This move was effected mainly through the purchase of
one-year Government agency securities, which we thought would
benefit from a tightening of quality spreads at lower yield levels.
May and June provided continued signs of economic slowing with the
employment and retail sales reports both showing weakness. Along
with this weakness came strong demand from investors in the fixed-
income market, causing a continued flattening of the yield curve and
a further tightening of quality spreads. We took a position in nine-
month Treasury notes, which represented a steep portion of the yield
curve. Later with the financing rate still relatively high, we
maintained a modest barbell structure, emphasizing a large overnight
position to capture the high financing rate, and positions in the
six-month sector.
Following the Federal Reserve Board's early July decision to reduce
the Federal Funds target rate by 25 basis points (0.25%) to 5.75%,
portions of the short end of the yield curve inverted temporarily.
We executed several shortening trades to exploit this opportunity,
picking up yield while reducing exposure. Additionally, we
established positions in bank and corporate floating rate paper tied
to the Federal Funds rate.
August provided some final opportunities to shorten up along an
inverted yield curve. We were able to sell October Government agency
discount notes to purchase September Government agency discount
notes for a slight yield advantage. With economic reports extremely
mixed, the market weakened as investors began to believe that the
possibility of an easing of monetary policy was more remote. We
maintained the Fund's average life in the high 70-day area mainly
through the purchase of high-quality six-month money market
instruments.
In September, with continued evidence of slow growth combined with
benign inflation, the Fund maintained an average life in the high 70-
day area. With the short end of the yield curve still extremely
flat, we focused on overnight repurchase agreements and one-month
commercial paper along with three-month and six-month money markets.
The longer sectors were attractive because they provided some
incremental return versus financing rates. We were also able to
establish positions in 10-month--15-month Treasury notes, an area
which provided good relative value along the curve.
Looking ahead, with little pressure on prices and debates raging in
Washington over budget deficit reduction, we believe interest rates
still have room to move lower in the near future. Accordingly, we
will maintain the Fund's constructive stance with an eye on the
economic data looking for signs of a potential rebound.
The Fund's portfolio composition at the end of the September period
and as of our last report to shareholders is detailed below:
9/30/95 3/31/95
Bank Notes 5.6% 1.0%
Certificates of Deposit -- 0.1
Certificates of Deposit--
European 3.9 3.2
Certificates of Deposit--
Yankee* 5.3 3.7
Commercial Paper 37.2 40.8
Corporate Notes 2.3 --
Master Notes 1.5 1.7
Medium-Term Notes 2.3 1.1
Repurchase Agreements 2.5 1.2
Time Deposits -- 0.9
US Government, Agency &
Instrumentality Obligations--
Discount Notes 7.5 20.3
US Government &
Agency Obligations--
Non-Discount Notes 33.4 29.4
Liabilities in Excess
of Other Assets (1.5) (3.4)
--------- ---------
Total 100.0% 100.0%
========= =========
[FN]
*US branches of foreign banks.
In Conclusion
We thank you for your ongoing interest in CMA Money Fund, and we
look forward to sharing our investment strategies and objectives
with you in our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Kevin J. McKenna)
Kevin J. McKenna
Vice President and Portfolio Manager
November 2, 1995
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Bank Notes--5.6%
Banc One, Chicago $ 100,000 6.12++ % 9/05/96 $ 99,973
Banc One, Columbus 69,000 6.48++ 9/18/96 68,948
Banc One, Milwaukee 106,000 6.11++ 8/28/96 105,963
Banc One, Texas 125,000 6.11++ 9/05/96 124,955
Banc of America, Illinois 100,000 5.86 1/17/96 99,997
100,000 5.87 1/17/96 100,000
Bank of America 100,000 5.75 10/20/95 99,992
N.T. & S.A. 50,000 5.80 10/25/95 49,997
First Bank N.A., 100,000 5.793++ 5/06/96 99,983
Milwaukee
First Bank of 50,000 5.80 10/06/95 50,000
South Dakota
First Union National 50,000 6.23 10/31/95 50,011
Bank, North Carolina
Key Bank of New York 100,000 6.50++ 8/16/96 99,958
50,000 6.49++ 9/06/96 49,968
Key Bank of Washington 50,000 6.49++ 9/06/96 49,968
Morgan Guaranty 90,000 6.07++ 7/05/96 89,954
Trust Company
NBD Bank N.A., Detroit 95,000 6.40 4/25/96 95,212
Society National Bank, 25,000 6.575++ 3/20/96 25,002
Cleveland 75,000 6.50++ 8/16/96 74,968
50,000 6.49++ 9/06/96 49,968
Trust Company, 100,000 6.50 3/21/96 100,234
Bank, Atlanta
Wachovia Bank 50,000 5.75 10/06/95 50,000
of North Carolina 19,000 5.74 10/10/95 19,000
38,000 5.75 10/16/95 38,000
43,000 5.75 10/17/95 43,000
50,000 5.75 10/18/95 50,000
10,000 5.75 10/19/95 10,000
40,000 5.75 10/20/95 40,000
Total Bank Notes
(Cost--$1,834,568) 1,835,051
Certificates of Deposit--European--3.9%
ABN AMRO Bank N.V. 20,000 5.80 2/16/96 19,994
35,000 5.84 2/23/96 34,995
25,000 5.70 3/18/96 24,983
25,000 5.68 3/26/96 24,980
Abbey National PLC 20,000 6.76 4/02/96 20,073
100,000 6.54 4/09/96 100,270
Bank of Tokyo 100,000 5.91 10/23/95 100,004
Bankamerica Corp. 50,000 5.78 1/10/96 49,982
Deutsche Bank 50,000 6.63 3/22/96 50,138
Dresdner Bank 25,000 5.76 2/29/96 24,989
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Certificates of Deposit--European (concluded)
Mitsubishi Bank $200,000 5.97 % 10/27/95 $ 200,001
Morgan Guaranty 100,000 5.76 1/31/96 99,967
Trust Company 350,000 5.80 2/08/96 349,887
National Westminster 180,000 5.78 2/06/96 179,930
Bank PLC
Sanwa Bank 10,000 5.88 10/19/95 10,000
Total Certificates of Deposit--European
(Cost--$1,290,067) 1,290,193
Certificates of Deposit--Yankee--5.3%
Bank of Tokyo, Portland 50,000 5.90 10/27/95 50,002
Banque Nationale 52,000 5.76 10/17/95 51,997
de Paris, NY
Bayerische Hypotheken- 150,000 6.20 8/28/96 150,015
Und Wechsel-Bank, NY
Bayerische Landesbank, 125,000 6.20 8/28/96 125,012
NY 175,000 6.205 9/13/96 175,018
Dai-Ichi Kangyo Bank, 100,000 5.89 10/20/95 100,001
NY 50,000 5.90 10/23/95 50,001
Deutsche Bank, NY 250,000 5.76 10/02/95 250,000
Sanwa Bank, NY 25,000 5.87 10/02/95 25,000
92,000 5.96 10/05/95 92,000
23,000 5.89 10/25/95 23,001
Sumitomo Bank, NY 150,000 5.98 10/05/95 150,000
50,000 5.98 10/11/95 50,000
Swiss Bank Corp., NY 200,000 5.77 1/30/96 199,923
200,000 5.77 2/02/96 199,915
50,000 5.75 2/26/96 49,976
Total Certificates of Deposit--Yankee
(Cost--$1,742,004) 1,741,861
Commercial Paper--37.2%
ABN AMRO North 34,200 5.66 10/13/95 34,123
America Finance, Inc. 50,000 5.615 2/08/96 48,955
ANZ (Delaware), Inc. 20,000 6.11 10/02/95 19,990
50,000 5.64 1/08/96 49,198
APRECO, Inc. 25,000 5.75 10/02/95 24,988
ARCO Coal Australia Inc. 9,638 5.68 12/07/95 9,531
Abbey National N.A. 50,000 5.64 1/12/96 49,166
Corporation
Allomon Funding Corp. 20,108 5.78 10/02/95 20,098
10,054 5.75 10/11/95 10,035
14,133 5.75 10/20/95 14,085
9,065 5.75 10/24/95 9,029
Alpine Securitization 15,000 5.75 10/16/95 14,959
Corp. 60,000 5.76 10/18/95 59,818
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (continued)
American Express $ 75,000 5.63 % 10/06/95 $ 74,916
Credit Corp. 100,000 5.67 10/06/95 99,888
25,000 5.75 11/09/95 24,837
200,000 5.75 11/20/95 198,345
100,000 5.75 12/01/95 98,990
Ameritech Capital 42,400 5.62 1/22/96 41,625
Funding Corp.
Asset Securitization 75,000 5.75 10/17/95 74,782
Cooperative Corp. 100,000 5.66 10/19/95 99,678
Avco Financial Services, 10,000 5.75 10/03/95 9,994
Inc. 45,000 5.88 10/10/95 44,921
40,000 5.74 10/27/95 39,821
B.B.V. Finance 20,000 5.74 11/15/95 19,850
(Delaware), Inc
BTR Dunlop Finance Inc. 38,087 5.75 10/16/95 37,983
Bank of Nova Scotia 29,000 5.69 11/10/95 28,807
Bass Finance (C.I.) Ltd. 19,000 5.68 12/15/95 18,765
Bear Stearns Cos., Inc. 50,000 5.73 10/06/95 49,944
75,000 5.75 10/20/95 74,748
50,000 5.71 11/14/95 49,634
50,000 5.70 11/22/95 49,570
25,000 5.60 3/04/96 24,382
Beta Finance Inc. 23,000 5.71 11/17/95 22,821
19,000 5.70 2/20/96 18,567
Broadway Capital Corp. 20,000 5.78 10/11/95 19,961
19,000 5.75 10/16/95 18,948
15,596 5.75 10/20/95 15,544
20,101 5.76 10/23/95 20,024
Budget Funding Corp. 50,000 5.66 10/06/95 49,944
25,000 5.68 12/08/95 24,719
CIT Group Holdings, 100,000 5.75 10/02/95 99,952
Inc. (The) 100,000 5.77 10/03/95 99,936
CS First Boston Inc. 25,000 5.75 10/04/95 24,980
29,000 5.77 10/10/95 28,949
45,000 5.77 10/11/95 44,913
21,000 5.77 10/12/95 20,956
30,000 5.74 10/27/95 29,866
CSW Credit, Inc. 26,200 5.71 11/07/95 26,038
35,000 5.72 11/13/95 34,750
15,700 5.68 12/08/95 15,524
CXC Inc. 10,000 5.75 10/06/95 9,989
20,000 5.75 10/12/95 19,958
20,000 5.75 10/13/95 19,955
20,000 5.73 11/03/95 19,888
25,000 5.70 11/22/95 24,785
20,000 5.70 11/30/95 19,800
20,000 5.67 12/12/95 19,763
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (continued)
Cadbury Schweppes $ 50,000 5.69 % 11/15/95 $ 49,626
Money Management
Caisse des Depots 50,000 5.75 10/05/95 49,952
et Consignations 50,000 5.74 10/10/95 49,912
83,000 5.72 10/19/95 82,736
12,000 5.71 11/17/95 11,907
Caterpillar Financial 10,000 5.75 10/19/95 9,968
Services Corp.
Central and South 31,500 5.75 10/19/95 31,399
West Corp. 21,000 5.70 11/07/95 20,870
15,000 5.70 11/16/95 14,886
Cheltenham & Glouster 30,000 5.64 10/12/95 29,938
PLC
Commonwealth Bank 50,000 6.45 10/03/95 49,964
of Australia
Corporate Receivables 25,000 5.64 10/10/95 24,956
Corp. 25,000 5.66 10/13/95 24,944
25,000 5.75 10/16/95 24,931
25,000 5.66 10/20/95 24,915
30,000 5.80 11/03/95 29,831
40,000 5.70 11/08/95 39,747
30,000 5.70 11/22/95 29,744
Daimler-Benz North 45,000 5.71 11/02/95 44,757
American Corp. 25,000 5.72 11/03/95 24,861
Dean Witter, Discover 29,000 5.75 10/02/95 28,986
& Co. 35,000 5.75 10/05/95 34,966
35,000 5.75 10/18/95 34,894
20,000 5.74 10/20/95 19,933
Deer Park Refining L.P. 25,000 5.73 10/13/95 24,944
10,000 5.75 10/17/95 9,971
Diamond Asset Funding 20,181 5.90 11/30/95 19,979
Corporation
Dresdner US Finance Inc. 166,000 5.74 10/03/95 165,894
Du Pont (E.I.) De 300,000 6.05 10/05/95 299,713
Nemours & Co.
ESC Securitization Inc. 18,000 5.73 10/13/95 17,960
30,000 5.76 10/24/95 29,879
17,000 5.71 11/17/95 16,867
Eiger Capital Corp. 100,000 5.75 10/03/95 99,936
31,878 5.75 10/05/95 31,847
18,000 5.75 10/10/95 17,968
Falcon Asset 55,225 5.75 10/16/95 55,075
Securitization Corp. 32,950 5.76 10/25/95 32,813
45,750 5.71 11/03/95 45,496
25,550 5.72 11/03/95 25,408
20,000 5.70 11/13/95 19,857
Fleet Funding Corp. 24,120 5.74 11/09/95 23,962
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (continued)
Ford Motor Credit $ 500,000 5.73 % 10/03/95 $ 499,682
Co. 200,000 5.64 10/06/95 199,776
100,000 5.74 10/16/95 99,729
150,000 5.73 10/23/95 149,427
100,000 5.72 10/26/95 99,571
60,000 5.68 11/27/95 59,435
100,000 5.68 12/05/95 98,926
150,000 5.67 12/06/95 148,365
General Electric 100,000 6.11 10/04/95 99,920
Capital Corp. 100,000 6.11 10/05/95 99,904
100,000 6.12 10/11/95 99,809
100,000 6.12 10/12/95 99,792
50,000 5.72 11/06/95 49,698
116,000 5.71 11/10/95 115,225
100,000 5.73 11/10/95 99,332
75,000 5.70 11/22/95 74,359
100,000 5.69 2/12/96 97,847
100,000 5.59 3/05/96 97,512
50,000 5.60 3/14/96 48,685
100,000 5.60 3/15/96 97,354
General Electric 50,000 6.12 10/11/95 49,904
Capital Services, Inc. 100,000 5.70 11/10/95 99,335
Glaxo Wellcome PLC 100,000 5.73 10/16/95 99,726
70,000 5.73 10/18/95 69,786
50,000 5.71 11/13/95 49,642
50,000 5.71 11/14/95 49,634
150,000 5.71 11/15/95 148,878
70,000 5.73 11/16/95 69,465
10,000 5.71 11/20/95 9,917
Goldman Sachs Group, 370,000 5.89 10/03/95 369,764
L.P. 300,000 5.77 10/10/95 299,471
Hanson Finance (UK) 30,000 5.67 10/16/95 29,918
PLC 25,000 5.73 11/16/95 24,809
20,000 5.72 11/20/95 19,834
Hertz Corp., The 50,000 5.66 10/04/95 49,960
10,000 5.66 10/06/95 9,989
20,000 5.68 12/08/95 19,776
International Lease 15,000 6.11 10/02/95 14,993
Finance Corp. 25,000 5.90 10/03/95 24,984
International 11,000 5.77 10/03/95 10,993
Nederlanden (US) 33,000 5.66 10/16/95 32,910
Funding Corp. 25,000 5.76 10/19/95 24,919
75,000 5.61 2/28/96 73,195
KFW International 35,000 5.75 10/05/95 34,966
Finance Inc.
Kingdom of Sweden 139,050 5.67 12/18/95 137,267
50,000 5.66 12/22/95 49,327
100,000 5.66 1/24/96 98,141
10,950 5.59 3/22/96 10,648
Koch Industries Inc. 73,000 6.55 10/02/95 72,960
Leeds Permanent 40,000 6.15 10/10/95 39,930
Building Society
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (continued)
Matterhorn Capital $ 43,000 5.75 % 10/03/95 $ 42,973
Corp. 33,095 5.72 10/26/95 32,953
McKenna Triangle 25,000 5.66 10/13/95 24,944
National Corp. 35,000 5.73 10/25/95 34,855
50,000 5.73 10/26/95 49,785
15,000 5.70 11/10/95 14,900
15,000 5.71 11/10/95 14,900
25,000 5.73 11/10/95 24,833
25,000 5.70 11/17/95 24,805
25,000 5.71 11/22/95 24,785
25,000 5.70 12/05/95 24,732
Morgan (J.P.) 200,000 6.10 10/10/95 199,649
& Company, Inc.
Morgan Stanley Group, 200,000 5.73 10/27/95 199,109
Inc.
National Fleet 50,000 5.75 10/18/95 49,848
Funding Corp. 100,000 5.74 11/03/95 99,442
New Center Asset 112,000 5.76 10/02/95 111,946
Trust 150,000 5.77 10/13/95 149,663
178,000 5.77 10/16/95 177,515
160,000 5.75 10/18/95 159,514
50,000 5.73 10/20/95 49,833
New South Wales 25,000 5.64 3/29/96 24,295
Treasury Corp.
Nomura Holding 25,000 5.74 10/04/95 24,980
America, Inc. 25,000 5.74 10/05/95 24,976
30,000 5.73 10/10/95 29,947
25,000 5.72 11/08/95 24,841
25,000 5.73 11/09/95 24,837
10,000 5.71 11/17/95 9,922
Norwest Corp. 40,000 5.64 12/20/95 39,474
40,000 5.64 12/21/95 39,468
20,000 5.64 12/22/95 19,731
Oesterreichische 114,925 5.73 11/16/95 114,047
Kontrollbank 35,000 5.59 3/27/96 34,008
Aktiengesellschaft
PHH Corp. 35,585 5.75 10/04/95 35,557
50,000 5.75 10/05/95 49,952
69,884 5.75 10/06/95 69,806
Pitney Bowes Credit 10,000 6.10 10/06/95 9,989
Corp.
Preferred Receivables 25,025 5.75 10/02/95 25,013
Funding Corp. 25,125 5.77 10/02/95 25,113
36,575 5.75 10/04/95 36,546
40,233 5.75 10/05/95 40,194
25,000 5.75 10/12/95 24,948
38,617 5.74 10/25/95 38,457
24,425 5.73 11/01/95 24,297
35,000 5.70 12/05/95 34,624
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (concluded)
Premium Funding, Inc. $ 16,330 5.77 % 10/02/95 $ 16,322
(Series A--Q) 11,394 5.75 11/09/95 11,320
32,276 5.72 11/17/95 32,025
Province of Ontario 25,000 5.55 3/20/96 24,319
Rexam PLC 20,000 5.63 10/11/95 19,962
10,000 5.68 12/07/95 9,889
21,000 5.68 12/08/95 20,764
Riverwoods Funding 55,000 5.74 10/20/95 54,816
Corp. 10,000 5.75 10/30/95 9,950
10,000 5.75 10/31/95 9,949
Sandoz Corp. 34,500 5.74 11/03/95 34,307
Santander Finance 50,000 5.61 2/06/96 48,971
(Delaware) Inc.
Sheffield Receivables 44,000 6.55 10/02/95 43,976
Corp. 50,000 5.75 10/11/95 49,904
106,000 5.69 11/15/95 105,213
Siemens Corp. 25,000 5.615 2/06/96 24,485
Societe Generale 50,000 5.64 10/11/95 49,904
North America, Inc.
Student Loan Corp. 25,000 5.72 10/24/95 24,901
Svenska Handels- 50,000 5.70 10/24/95 49,799
banken, Inc. 64,000 5.68 12/05/95 63,313
36,000 5.68 12/12/95 35,573
50,000 5.68 12/27/95 49,287
Toshiba International 10,300 5.76 10/30/95 10,249
Finance (UK) PLC
Toyota Motor Credit 15,000 5.75 10/10/95 14,974
Corp.
Transamerica Finance 10,000 6.10 10/13/95 9,978
Corp.
US Borax Inc. 18,300 5.66 10/17/95 18,247
22,000 5.69 11/09/95 21,856
28,300 5.71 11/29/95 28,021
Vattenfall Treasury
Inc. 50,000 5.58 3/20/96 48,638
WCP Funding Inc. 17,000 5.75 10/24/95 16,932
15,000 5.72 11/10/95 14,900
18,000 5.69 11/17/95 17,861
Western Australia 25,000 5.72 11/22/95 24,786
Treasury Corp.
Windmill Funding Corp. 11,878 5.75 10/02/95 11,872
85,557 5.75 10/06/95 85,461
35,570 5.75 10/10/95 35,508
25,146 5.77 10/13/95 25,090
31,169 5.75 10/25/95 31,040
10,680 5.70 11/17/95 10,597
Wool International 75,000 5.55 3/07/96 73,110
Total Commercial Paper
(Cost--$12,156,125 ) 12,155,641
Corporate Notes--2.3%
Ford Motor Credit Co. $ 38,090 8.875% 8/01/96 $ 38,985
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Corporate Notes--2.3% (concluded)
General Electric 20,000 6.07++ 11/29/95 20,007
Capital Corp. 86,850 6.55 3/25/96 87,076
50,000 6.55 3/28/96 50,130
90,000 6.39 5/06/96 90,225
50,000 5.68 9/09/96 49,910
Morgan (J.P.) 146,500 5.80 7/17/96 146,421
& Company, Inc.++
SMM Trust-1995-K++ 261,000 5.895 6/14/96 261,000
Total Corporate Notes
(Cost--$743,174) 743,754
Master Notes--1.5%
Goldman Sachs Group, 130,000 5.82 11/24/95 130,000
L.P.++ 300,000 5.82 2/14/96 300,000
Smith Barney Inc.++ 75,000 5.80 3/07/96 75,000
Total Master Notes
(Cost--$505,000) 505,000
Medium-Term Notes--2.3%
Abbey National 150,000 7.05 3/01/96 150,720
Treasury Services PLC
Beta Finance Inc. 120,000 5.835++ 9/16/96 120,000
38,000 6.66 3/29/96 38,129
CIT Group Holdings, 180,000 5.81 9/12/96 179,850
Inc. (The)++ 150,000 5.81 9/26/96 149,871
Toyota Motor Credit 112,000 5.753 9/13/96 111,927
Corp.++
Total Medium-Term Notes
(Cost--$749,631) 750,497
US Government & Agency Obligations--
Discount Notes--7.5%
Federal Farm Credit Bank 25,000 6.10 11/16/95 24,812
25,000 6.06 3/21/96 24,333
Federal Home 75,000 6.07 10/02/95 74,965
Loan Banks 48,450 6.07 10/03/95 48,420
20,000 5.50 10/05/95 19,981
115,000 5.53 10/11/95 114,785
9,890 5.91 10/17/95 9,862
9,615 6.13 11/08/95 9,555
46,060 5.97 1/05/96 45,361
109,000 6.00 1/05/96 107,345
10,000 6.00 1/08/96 9,844
19,000 6.03 1/08/96 18,703
30,000 5.98 1/11/96 29,517
50,000 6.02 1/11/96 49,194
25,000 6.02 1/12/96 24,593
11,500 5.55 1/22/96 11,295
22,000 6.08 1/23/96 21,605
43,000 5.56 1/24/96 42,220
55,000 5.49 2/28/96 53,709
38,950 6.13 3/22/96 37,905
20,000 6.02 4/05/96 19,420
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
US Government & Agency Obligations--
Discount Notes (concluded)
Federal Home Loan $ 67,000 5.54 % 10/10/95 $ 66,885
Mortgage Corp. 27,890 5.61 10/26/95 27,772
50,000 5.52 2/08/96 48,981
10,298 5.54 2/08/96 10,088
10,200 6.02 4/12/96 9,893
Federal National 50,000 5.60 10/03/95 49,969
Mortgage Association 151,000 5.66 10/04/95 150,881
390,000 5.62 10/19/95 388,782
45,000 5.62 10/23/95 44,831
22,815 5.46 11/02/95 22,694
8,260 5.54 12/01/95 8,179
16,300 5.54 12/04/95 16,133
35,000 6.07 12/07/95 34,626
18,255 5.52 12/13/95 18,043
12,285 5.52 12/20/95 12,129
290,000 5.52 2/12/96 283,909
91,975 5.50 2/20/96 89,929
50,000 5.505 2/20/96 48,888
13,600 5.51 2/20/96 13,297
43,000 5.50 2/21/96 42,037
50,000 5.50 2/28/96 48,826
57,725 5.51 2/28/96 56,370
International Bank For 50,000 5.57 10/18/95 49,851
Reconstruction 100,000 5.57 10/25/95 99,591
and Development
Total US Government & Agency Obligations--
Discount Notes (Cost--$2,439,477) 2,440,008
US Government & Agency Obligations--
Non-Discount Notes--33.4%
Federal Farm Credit 10,000 7.11 2/01/96 10,041
Bank 25,000 6.39 4/17/96 25,052
140,000 5.80++ 3/14/97 139,851
Federal Home Loan 280,000 6.18++ 12/28/95 280,000
Banks 20,000 7.16 2/01/96 20,086
179,500 7.13 2/09/96 180,254
20,000 6.85 2/28/96 20,078
16,000 9.80 3/25/96 16,294
209,485 6.42 4/24/96 209,904
274,000 6.21++ 6/17/96 274,000
109,000 6.21++ 6/21/96 109,000
60,000 5.635++ 8/05/96 59,920
38,500 6.17++ 12/23/96 38,522
88,000 7.10++ 4/03/97 88,000
61,570 6.18 10/02/97 61,488
25,000 6.10++ 1/26/98 24,811
50,000 6.10++ 1/29/98 49,622
135,000 6.20++ 10/11/00 135,000
Federal Home Loan 50,000 6.84 2/28/96 50,180
Mortgage Corp. 165,000 6.45 4/08/96 165,412
58,400 6.08++ 5/06/96 58,400
55,000 6.25++ 5/13/98 55,000
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
US Government & Agency Obligations--
Non-Discount Notes (concluded)
Federal National $ 120,000 6.15%++ 12/20/95 $ 120,000
Mortgage Association 95,000 6.12++ 1/26/96 94,981
185,000 5.39++ 2/07/96 184,993
50,000 5.39++ 2/16/96 49,983
62,500 6.72 2/28/96 62,694
125,240 6.86 2/28/96 125,728
50,000 6.67 3/15/96 50,175
200,000 6.43 4/18/96 200,440
355,000 5.39++ 5/10/96 354,895
374,000 6.08++ 5/13/96 374,000
270,000 6.08++ 5/24/96 270,000
200,000 5.63++ 6/28/96 199,620
200,000 5.62 7/02/96 199,641
198,000 5.81++ 7/08/96 197,828
173,000 5.568++ 7/18/96 172,892
250,000 6.43++ 8/08/96 249,876
624,000 5.593++ 10/11/96 624,000
445,000 5.51++ 2/21/97 445,000
242,920 6.46 3/27/96 243,552
267,700 6.20++ 5/19/97 267,700
200,000 5.80++ 8/07/97 199,612
267,000 6.25++ 5/14/98 267,000
Student Loan 71,000 5.37++ 10/12/95 70,995
Marketing 39,000 5.46++ 2/08/96 38,996
Association 15,000 6.943 2/21/96 15,060
120,500 5.64++ 3/20/96 120,524
39,100 5.51++ 4/16/96 39,117
50,000 5.47++ 5/14/96 50,024
98,585 5.44++ 8/09/96 98,528
15,000 5.74++ 8/22/96 15,039
710,000 5.593++ 9/20/96 710,000
275,000 5.97 10/04/96 275,028
150,000 5.65++ 1/14/97 150,000
7,095 5.69++ 1/23/97 7,099
38,480 5.71++ 2/14/97 38,558
28,190 5.46++ 10/14/97 28,116
16,025 5.67++ 10/14/97 15,981
25,500 5.50++ 10/17/97 25,455
29,000 5.67++ 10/17/97 28,948
23,175 5.64++ 10/30/97 23,198
US Treasury Notes 125,000 4.625 2/15/96 124,531
250,000 4.625 2/29/96 248,906
30,000 5.50 4/30/96 29,963
150,000 4.25 5/15/96 148,640
250,000 7.375 5/15/96 252,500
100,000 5.875 5/31/96 100,094
150,000 6.875 10/31/96 151,594
225,000 7.50 1/31/97 229,711
200,000 6.625 3/31/97 202,187
50,000 6.125 5/31/97 50,172
450,000 5.625 6/30/97 448,172
150,000 5.75 9/30/97 149,672
Total US Government & Agency Obligations--
Non-Discount Notes (Cost--$10,912,783) 10,912,333
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONCLUDED) (IN THOUSANDS)
Face Value
Amount Issue (Note 1a)
Repurchase Agreements**--2.5%
$150,000 Fuji Securities, Inc., purchased
on 9/29/95 to yield 6.50% to
10/02/95 $ 150,000
150,000 Greenwich Capital Markets Inc.,
purchased on 9/29/95 to yield 6.50%
to 10/02/95 150,000
150,000 HSBC Securities, Inc., purchased
on 9/29/95 to yield 6.55% to
10/02/95 150,000
300,000 Lehman Brothers Inc., purchased
on 9/29/95 to yield 6.55% to
10/02/95 300,000
CMA MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONCLUDED) (IN THOUSANDS)
Face Value
Amount Issue (Note 1a)
Repurchase Agreements** (concluded)
$55,757 SBC Capital Markets, Inc., purchased
on 9/29/95 to yield 6.30% to
10/02/95 $ 55,757
Total Repurchase Agreements
(Cost--$805,757 ) 805,757
Total Investments
(Cost--$33,178,586 )--101.5% 33,180,095
Liabilities in Excess of Other Assets--(1.5%) (500,264)
-----------
Net Assets--100.0% $32,679,831
===========
[FN]
*Commercial Paper and certain US Government & Agency Obligations are
traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Fund. Other
securities bear interest at the rates shown, payable at fixed dates
through maturity. Interest rates on variable rate securities are
adjusted periodically based on appropriate indexes; the interest
rates shown are the rates in effect at September 30, 1995.
**Repurchase Agreements are fully collateralized by US Government
Obligations.
++Variable Rate Notes.
See Notes to Financial Statements.
<TABLE>
CMA MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$33,178,586,039++) (Note 1a) $ 33,180,094,751
Cash 500,450
Receivables:
Interest $ 163,913,667
Beneficial interest sold 632,740 164,546,407
----------------
Prepaid registration fees and other assets (Note 1d) 461,587
----------------
Total assets 33,345,603,195
----------------
Liabilities:
Payables:
Securities purchased 645,832,195
Investment adviser (Note 2) 9,888,092
Distributor (Note 2) 7,895,438
Dividends to shareholders (Note 1e) 2,460 663,618,185
----------------
Accrued expenses and other liabilities 2,154,032
----------------
Total liabilities 665,772,217
----------------
Net Assets $ 32,679,830,978
================
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 3,267,832,227
Paid-in capital in excess of par 29,410,490,039
Unrealized appreciation on investments--net 1,508,712
----------------
Net Assets--Equivalent to $1.00 per share based on 32,678,322,266 shares of
beneficial interest outstanding $ 32,679,830,978
================
<FN>
++Cost for Federal income tax purposes. As of September 30, 1995,
net unrealized appreciation for Federal income tax purposes amounted
to $1,508,712, of which $7,496,711 related to appreciated securities
and $5,987,999 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 935,644,982
----------------
Expenses:
Investment advisory fees (Note 2) $ 58,564,660
Distribution fees (Note 2) 19,274,070
Transfer agent fees (Note 2) 6,507,086
Registration fees (Note 1d) 1,286,416
Accounting services (Note 2) 536,418
Custodian fees 351,371
Printing and shareholder reports 257,190
Professional fees 74,579
Trustees' fees and expenses 35,846
Other 146,033
----------------
Total expenses 87,033,669
----------------
Investment income--net 848,611,313
Realized Gain on Investments--Net (Note 1c) 6,363,175
Change in Unrealized Depreciation on Investments--Net 9,309,099
----------------
Net Increase in Net Assets Resulting from Operations $ 864,283,587
================
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: Sept. 30, 1995 March 31, 1995
<S> <C> <C>
Operations:
Investment income--net $ 848,611,313 $ 1,209,280,186
Realized gain on investments--net 6,363,175 7,984,282
Change in unrealized depreciation on investments--net 9,309,099 5,456,273
---------------- ----------------
Net increase in net assets resulting from operations 864,283,587 1,222,720,741
---------------- ----------------
Dividends and Distributions to Shareholders (Note 1e):
Investment income-- net (848,611,313) (1,209,280,186)
Realized gain on investments-- net (6,363,175) (7,984,282)
---------------- ----------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (854,974,488) (1,217,264,468)
---------------- ----------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 63,572,734,382 114,576,757,341
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 853,229,324 1,214,458,420
---------------- ----------------
64,425,963,706 115,791,215,761
Cost of shares redeemed (60,822,203,512) (113,801,792,385)
---------------- ----------------
Net increase in net assets derived from beneficial interest
transactions 3,603,760,194 1,989,423,376
---------------- ----------------
Net Assets:
Total increase in net assets 3,613,069,293 1,994,879,649
Beginning of period 29,066,761,685 27,071,882,036
---------------- ----------------
End of period $ 32,679,830,978 $ 29,066,761,685
================ ================
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have
been derived from information provided in the
financial statements. For the Six
Months Ended For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: Sept. 30, 1995 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Investment income--net .0273 .0437 .0276 .0309 .0498
Realized and unrealized gain (loss) on
investments--net .0005 .0005 (.0005) .0019 .0019
----------- ----------- ----------- ----------- -----------
Total from investment operations .0278 .0442 .0271 .0328 .0517
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.0273) (.0437) (.0276) (.0309) (.0498)
Realized gain on investments--net (.0002) (.0003) (.0003) (.0015) (.0020)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions (.0275) (.0440) (.0279) (.0324) (.0518)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Investment Return 5.59%* 4.50% 2.82% 3.30% 5.27%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets:
Expenses, excluding distribution fees .44%* .44% .42% .42% .42%
=========== =========== =========== =========== ===========
Expenses .56%* .56% .55% .55% .54%
=========== =========== =========== =========== ===========
Investment income and realized gain on
investments--net 5.52%* 4.42% 2.79% 3.25% 5.18%
=========== =========== =========== =========== ===========
Supplemental Data:
Net assets, end of period (in thousands) $32,679,831 $29,066,762 $27,071,882 $27,093,682 $29,106,627
=========== =========== =========== =========== ===========
<FN>
*Annualized.
See Notes to Financial Statements.
</TABLE>
CMA MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Money Fund (the "Fund") is registered under the Investment
Company Act of 1940 as a no-load diversified, open-end management
investment company. 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 following is
a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments--Investments maturing more than sixty
days after the valuation date are valued at the most recent bid
price or yield equivalent as obtained from dealers that make markets
in such securities. When securities are valued with sixty days or
less to maturity, the difference between the valuation existing on
the sixty-first day before maturity and maturity value is amortized
on a straight-line basis to maturity. Investments maturing within
sixty days from their date of acquisition are valued at amortized
cost, which approximates market value.
For the purpose of valuation, the maturity of variable rate
certificates of deposit, variable rate commercial paper, short-term
corporate bond notes and variable rate corporate notes is deemed to
be the next coupon date on which the interest rate is to be
adjusted. Assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or
under the direction of the Board of Trustees of the Fund.
(b) 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 all of its taxable income to
its shareholders. Therefore, no Federal income tax provision is
required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income, including amortization of
premium and discount, is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax and back-up withholding tax withheld) in
additional fund shares at net asset value. Dividends and
distributions are declared from the total of net investment income
and net realized gain or loss on investments.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM" or "Adviser"). The general partner of
FAM is Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM 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 based upon the average daily
value of the Fund's net assets at the following annual rates: 0.50%
of the Fund's average daily net assets not exceeding $500 million;
0.425% of the average daily net assets in excess of $500 million,
but not exceeding $1 billion; and 0.375% of the average daily net
assets in excess of $1 billion. The most restrictive annual expense
limitation requires that the Adviser reimburse the Fund to the
extent the Fund's expenses (excluding interest, taxes, distribution
fees, brokerage fees and commissions, and extraordinary items)
exceed 2.5% of the Fund's first $30 million of average daily net
assets, 2.0% of the next $70 million of average daily net assets and
1.5% of the average daily net assets in excess thereof.
CMA MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
No fee payment will be made to the Adviser during the year which
will cause such expenses to exceed the pro rata expense limitation
at the time of such payment.
The Fund has adopted a Distribution and Shareholder Servicing Plan
in compliance with Rule 12b-1 under the Investment Company Act of
1940, pursuant to which Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S") receives a distribution fee under the Distribution
Agreement from the Fund at the end of each month at the annual rate
of 0.125% of average daily net assets of the Fund for shareholders
who maintain their accounts through MLPF&S. The distribution fee is
to compensate MLPF&S financial consultants and other directly
involved branch office personnel for selling shares of the Fund and
for providing direct personal services to shareholders. The
distribution fee is not compensation for the administrative and
operational services rendered to the Fund by MLPF&S in processing
share orders and administering shareholder accounts.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLPF&S, MLFDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the periods
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
CMA Money Fund
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Joseph T. Monagle, Jr.--Senior Vice President
Donald C. Burke--Vice President
Kevin J. McKenna--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
