CMA
CMA Tax-Exempt Fund
Annual Report
FUND LOGO
March 31, 2000
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. An
investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other Government agency.
Although the Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the
Fund. Past performance results shown in this report should not be
considered a representation of future performance, which will
fluctuate. Statements and other information herein are as dated and
are subject to change.
CMA Tax-Exempt Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
To Our Shareholders:
For the year ended March 31, 2000, CMA Tax-Exempt Fund paid
shareholders a net annualized yield of 2.91%*. As of March 31, 2000,
the Fund's 7-day yield was 3.28%.
Economic Environment
During the six-month period ended March 31, 2000, the Federal
Reserve Board continued to raise short-term interest rates in an
effort to avoid inflationary pressures. Although inflationary data
has remained benign, dramatically higher oil prices and the
continuation of extremely strong domestic economic growth caused the
Federal Reserve Board to be vigilant in its interest rate policy.
Concern over tight labor markets and the rising wealth effect from a
soaring stock market has warranted fears of future inflation. During
the six-month period, the Federal Reserve Board raised interest
rates on three occasions for a total increase of 75 basis points
(0.75%). Additionally, as a result of fears for more interest rate
increases, investors were forced to command higher rate premiums as
insurance against this possibility. Thus, the yield on the six-month
US Treasury bill, which began the period just below 5.00%, rose over
100 basis points and ended the period at 6.13%.
Yields on short-term municipal bonds also rose during the six months
ended March 31, 2000 as sentiment from the US Treasury market flowed
into the short-term tax-exempt market. Although there was a good
degree of volatility related to supply and demand, the general trend
was for higher interest rates, especially for securities with
maturities of six months--one year. Much of this volatility was
related to the supply and demand imbalances for variable rate demand
notes, which experienced seasonal factors. For example, yields for
these securities typically surge each year-end as money funds
traditionally experience large redemptions related to seasonal
spending and year-end tax planning. Despite fears of heavier than
usual redemptions in December 1999 because of Year 2000 concerns,
the end of the year proved to be like any other and in some ways was
even less volatile. Interest rates for these securities fell
dramatically in January as money flowed back into these money funds
while new issuance was low. Interest rates then rose in February and
March to reflect levels consistent with the current yield curve
environment as demand abated. New issuance for the period fell by
52% to $12.9 billion, from the $26.7 billion issued in the previous
six-month period. Additionally, assets in the tax-exempt money fund
industry rose over the six-month period ended March 31, 2000 by
approximately $25 billion to close at a record high of $215 billion.
Investment Strategy
During the fiscal year ended March 31, 2000, assets of CMA Tax-
Exempt Fund rose to $10.2 billion, an increase of approximately $400
million from the close of fiscal year 1999. We maintained the Fund's
average portfolio maturity in the 30-day--45-day range for the
majority of the period. The one exception was a slight extension to
the 55-day--60-day range in September 1999 in order to take
advantage of attractive yields offered as a result of the heavy new-
issue supply at that time. Otherwise, we kept the average portfolio
maturity in a neutral-to-defensive range for two reasons. First, the
Federal Reserve Board appeared to be in a tightening mode given the
strength of the economy. Second, the shape of the short-term tax-
exempt yield curve continued to be flat to inverted. In such an
environment, there is little or no yield incentive for acquiring
incremental interest rate risk by extending out on the yield curve.
The Fund's average portfolio maturity was enhanced through the use
of tax-exempt commercial paper, which allowed maturity
diversification while offering principal safety and attractive
yields. Credit quality and diversification remain paramount to the
Fund as we seek to offer shareholders an attractive tax-exempt
yield.
In Conclusion
We thank you for your continued support of CMA Tax-Exempt Fund, and
we look forward to serving your investment needs in the months and
years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Peter J. Hayes)
Peter J. Hayes
Vice President and Portfolio Manager
May 5, 2000
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Portfolio Abbreviations for CMA Tax-Exempt Fund
ACES SM Adjustable Convertible Extendible Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
CP Commercial Paper
DATES Daily Adjustable Tax-Exempt Securities
EDA Economic Development Authority
FLOATS Floating Rate Securities
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
UPDATES Unit Price Adjustable Tax-Exempt Securities
VRDN Variable Rate Demand Notes
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <S>
Alabama--2.5% $67,500 Birmingham, Alabama, Medical Clinic Board, Revenue Refunding Bonds
(U.A.H.S.F.), VRDN, 3.80% due 12/01/2026 (d) $ 67,500
40,000 Birmingham, Alabama, Special Care Facilities, Financing Authority Revenue
Refunding Bonds (Ascension Health Credit), VRDN, Series B, 3.85% due
11/15/2039 (d) 40,000
Columbia, Alabama, IDB, PCR, Refunding (Alabama Power Company Project),
VRDN (d):
5,000 Series A, 3.85% due 5/01/2022 5,000
8,000 Series D, 3.45% due 10/01/2022 8,000
13,500 Series E, 3.85% due 10/01/2022 13,500
14,700 Mobile, Alabama, IDB, PCR, Refunding (Alabama Power Company Project),
VRDN, 3.90% due 6/01/2015 (d) 14,700
20,000 Parrish, Alabama, IDB, PCR, Refunding (Alabama Power Company Project),
VRDN, 3.85% due 6/01/2015 (d) 20,000
24,000 Stevenson, Alabama, IDB, Environmental Improvment Revenue Bonds (Mead
Corporation Project), VRDN, AMT, 3.95% due 1/01/2031 (d) 24,000
57,100 West Jefferson, Alabama, IDB, PCR, Refunding (Alabama Power Company
Project), VRDN, 3.90% due 6/01/2028 (d) 57,100
Alaska--0.3% Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (Exxon Pipeline
Company Project), VRDN (d):
2,200 Series A, 3.80% due 12/01/2033 2,200
12,300 Series B, 3.80% due 12/01/2033 12,300
16,300 Series C, 3.80% due 12/01/2033 16,300
Arizona--2.5% 45,200 Apache County, Arizona, IDA, IDR (Tucson Electric Power Co.), VRDN,
Series 83-A, 3.90% due 12/15/2018 (d) 45,200
Arizona Agriculture Improvement and Power District Electric System Revenue
Bonds (Salt River Project), CP:
21,581 3.80% due 5/11/2000 21,581
20,970 3.90% due 5/16/2000 20,970
10,985 4% due 6/13/2000 10,985
10,200 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue
Bonds, VRDN, AMT, Series A, 3.95% due 3/01/2015 (d)(f) 10,200
36,000 Arizona School District, TAN, Financing Program, COP, Series A, 4.05% due
7/31/2000 36,055
Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding
VRDN (d):
8,700 (Arizona Public Service Company), Series A, 3.85% due 5/01/2029 8,700
11,700 (Arizona Public Service Company), Series B, 3.85% due 5/01/2029 11,700
9,000 (Arizona Public Service Company), Series C, 3.85% due 5/01/2029 9,000
6,500 (Arizona Public Service Company), Series E, 3.85% due 5/01/2029 6,500
10,780 (Arizona Public Service Company), Series F, 3.85% due 5/01/2029 10,780
11,100 (El Paso Electric Company Project), Series A, 3.90% due 7/01/2014 11,100
25,000 (El Paso Electric Company Project), Series A, 3.90% due 8/01/2015 25,000
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <S>
Arizona $ 7,600 Tempe, Arizona, Excise Tax Revenue Bonds, VRDN, 3.90% due 7/01/2023 (d) $ 7,600
(concluded) 15,800 University of Arizona, COP (Student Union Bookstore), VRDN, Series B,
3.85% due 6/01/2024 (a)(d) 15,800
Arkansas--0.4% 43,100 North Little Rock, Arkansas, Health Facilities Board, Health Care
Revenue Bonds (Baptist Health), VRDN, Series B, 3.90% due
12/01/2021 (d)(f) 43,100
California--0.8% 42,850 California Higher Education Loan Authority Inc., Student Loan Revenue
Refunding Bonds, Senior Lien, CP, Series A-1, 3.50% due 7/01/2000 42,850
39,250 Sonoma County, California, TRAN, 4% due 11/01/2000 39,379
Colorado--0.3% 10,500 Denver, Colorado, City and County Airport Revenue Bonds, VRDN, AMT,
Series F, 3.95% due 11/15/2025 (d) 10,500
14,755 Palomino Park, Colorado, Public Improvements Corporation, Assessment Lien
Revenue Bonds, VRDN, 3.80% due 12/01/2035 (d) 14,755
6,500 Pitkin County, Colorado, IDR, Refunding (Aspen Skiing Company Project), VRDN,
AMT, Series B, 4% due 4/01/2014 (d) 6,500
Connecticut-- 20,000 Connecticut State Special Assessment Unemployment Compensation
0.8% Advance Fund, Revenue Bonds (Connecticut Unemployment), Series C,
3.38% due 7/01/2000 (c) 20,000
Eagle Tax-Exempt Trust, Connecticut, VRDN, Class 0701 (d):
13,200 Series 94, 3.47% due 8/15/2012 13,200
24,750 Series 96, 3.96% due 11/15/2004 24,750
20,000 New Haven, Connecticut, GO, BAN, 4% due 7/12/2000 20,024
Delaware--1.1% ABN-AMRO Munitops Certificates Trust:
29,185 CP, Series 1999-15, 3.90% due 5/31/2000 29,185
15,750 VRDN, AMT, Series 1998-15, 4% due 7/05/2006 (d) 15,750
20,000 VRDN, Series 1998-16, 4.03% due 10/04/2006 (d) 20,000
13,500 VRDN, Series 1998-22, 4.03% due 1/03/2007 (d) 13,500
29,950 VRDN, Series 1999-10, 3.75% due 3/07/2007 (d) 29,950
6,930 Delaware State, EDA, Revenue Bonds, FLOATS, Series PMD-1, 4.11% due
3/01/2020 (d) 6,930
District of 18,200 District of Columbia, GO (General Fund Recovery), VRDN, Series B-2,
Columbia--0.8% 3.90% due 6/01/2003 (d) 18,200
17,350 District of Columbia, GO, Refunding, MSTR, VRDN, Series SGA-62, 4% due
6/01/2017 (a)(d) 17,350
16,800 District of Columbia Revenue Bonds (George Washington University), VRDN,
Series A, 3.95% due 3/01/2006 (d) 16,800
26,700 Eagle Tax-Exempt Trust, Washington D.C., GO, VRDN, Series 94-A, 3.96% due
6/01/2005 (d) 26,700
Florida--5.0% 13,885 Broward County, Florida, Professional Sports Facilities, Tax Revenue Bonds,
MSTR, VRDN, Series SGA-38, 3.98% due 9/01/2021 (d)(f) 13,885
Capital Projects Finance Authority, Florida Revenue Bonds, VRDN,
Series A (d)(e):
53,480 (Capital Projects Loan Program), 3.90% due 8/01/2017 53,480
12,000 (Florida Hospital Association-Capital Projects Loan), 3.90% due
6/01/2028 12,000
50,240 Dade County, Florida, Water and Sewer System Revenue Bonds, VRDN, 3.80%
due 10/05/2022 (c)(d) 50,240
24,750 Eagle Tax-Exempt Trust, Florida Turnpike, VRDN, Series 96C, Class 0903,
4.05% due 7/01/2025 (d) 24,750
27,536 Florida Local Government Finance Commission (Pooled Loan Program), CP,
Series B, 4.05% due 8/09/2000 27,536
35,768 Gainsville, Florida, Utilities System Revenue Bonds, CP, Series C, 4% due
6/12/2000 35,768
10,000 Gulf Breeze, Florida, Local Government Revenue Bonds, VRDN, Series E,
3.95% due 12/01/2020 (c)(d) 10,000
20,245 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company
Project), VRDN, 4% due 9/01/2025 (d) 20,245
54,849 Jacksonville, Florida, CP, 3.75% due 5/25/2000 54,849
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <S>
Florida Jacksonville, Florida, Electric Authority Revenue Bonds:
(concluded) $40,900 CP, Series C-1, 3.70% due 4/05/2000 $ 40,900
59,000 (Electric System), VRDN, Sub-Series B, 4.10% due 10/01/2010 (d) 59,000
34,455 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue
Refunding Bonds (Charity Obligation Group), VRDN, Series C, 3.80% due
8/15/2019 (d)(f) 34,455
10,000 Jacksonville, Florida, PCR, Refunding (Florida Power & Light Co. Project),
VRDN, 3.85% due 5/01/2029 (d) 10,000
4,720 Jacksonville, Florida, Revenue Bonds (YMCA Florida First Coast Project),
VRDN, 3.90% due 3/01/2018 (d) 4,720
14,850 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding
Bonds (Pooled Hospital Loan Program), DATES, 3.80% due 12/01/2015 (a)(d) 14,850
7,400 Saint Lucie County, Florida, PCR, Refunding (Florida Power & Light Company
Project), VRDN, 3.85% due 3/01/2027 (d) 7,400
Sunshine, Florida, State Governmental Financing Commission Revenue Bonds:
8,575 CP, 4% due 6/08/2000 8,575
23,735 VRDN, 3.90% due 7/01/2016 (a)(d) 23,735
6,300 Volusia County, Florida, Health Facilities Authority Revenue Bonds (Pooled
Hospital Loan Program), ACES, 3.85% due 11/01/2015 (c)(d) 6,300
Georgia--5.6% 46,790 Bartow County, Georgia, Development Authority, PCR, Refunding (Georgia
Power Company Plant--Bowen Project), VRDN, 4.10% due 3/01/2024 (d) 46,790
Burke County, Georgia, Development Authority, PCR, Refunding, VRDN (d):
14,000 (Georgia Power Company Plant--Vogtle Project), First Series, 3.90% due
4/01/2032 14,000
24,150 (Oglethorpe Power Corporation), Series A, 3.85% due 1/01/2016 (c) 24,150
Burke County, Georgia, Development Authority, PCR:
15,000 (Georgia Power Company Plant--Vogtle Project), VRDN, 4th Series, 4.10%
due 7/01/2024 (d) 15,000
9,000 (Oglethorpe Power Corporation), CP, Series B, 3.85% due 4/25/2000 9,000
Cobb County, Georgia, GO:
60,000 TAN, 4.35% due 12/29/2000 60,096
85,000 School District, 4.375% due 12/29/2000 85,253
12,475 Coweta County, Georgia, Development Authority, PCR, Refunding (Georgia
Power Company-Plant Yates Project), VRDN, 4.10% due 3/01/2024 (d) 12,475
79,000 Fulton County, Georgia, School District, GO, Construction Sales, Tax Notes,
4.40% due 12/29/2000 79,182
85,000 Gwinnett County, Georgia, School District, GO, Construction Sales, Tax Notes,
4.45% due 12/29/2000 85,291
26,300 Heard County, Georgia, Development Authority, PCR, Refunding (Georgia Power
Company Plant-Wansley), VRDN, 4.10% due 9/01/2029 (d) 26,300
17,500 Monroe County, Georgia, Development Authority, PCR, Refunding (Georgia
Power Company Plant-Scherer), VRDN, 4.10% due 9/01/2029 (d) 17,500
15,000 Municipal Electric Authority, Georgia, CP, 3.85% due 6/08/2000 15,000
Municipal Electric Authority, Georgia, Revenue Refunding Bonds (Project One),
VRDN (d):
5,400 Series B, 3.90% due 1/01/2016 5,400
18,157 Sub-Series E, 3.90% due 1/01/2026 18,157
Putnam County, Georgia, Development Authority, PCR, Refunding (Georgia
Power Company Plant Project), VRDN (d):
13,725 4.10% due 3/01/2024 13,725
20,800 3.90% due 4/01/2032 20,800
26,400 First Series, 4.10% due 6/01/2023 26,400
Hawaii--0.2% 20,790 Hawaii State, Trust Receipts, VRDN, Series PMD-6, 4.01% due 9/01/2011 (d) 20,790
Idaho--0.2% 22,600 Idaho Health Facilities Authority Revenue Bonds, Pooled Financing Program,
ACES, 3.95% due 10/01/2010 (d) 22,600
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <S>
Illinois--10.3% Chicago, Illinois, GO:
$110,255 Tender Notes, CP, 4% due 10/26/2000 $ 110,255
90,000 Tender Notes, Series A, 3.90% due 12/07/2000 90,000
16,345 VRDN, Series B, 3.85% due 1/01/2012 (d) 16,345
7,000 Chicago, Illinois, IDR (Enterprise Center VIII Project), VRDN, AMT, 4%
due 6/01/2022 (d) 7,000
33,000 Chicago, Illinois, Midway Airport Revenue Bonds, Second Lien, VRDN, AMT,
Series A, 4% due 1/01/2029 (d)(f) 33,000
Chicago, Illinois, O'Hare International Airport Revenue Bonds (American
Airlines), DATES (d):
20,200 Series A, 3.90% due 12/01/2017 20,200
32,700 Series B, 3.90% due 12/01/2017 32,700
23,500 Series C, 3.90% due 12/01/2017 23,500
18,200 Series D, 3.90% due 12/01/2017 18,200
6,030 Chicago, Illinois, O'Hare International Airport Revenue Bonds (General
Airport Second Lien), VRDN, Series B, 3.85% due 1/01/2015 (d) 6,030
14,800 Chicago, Illinois, O'Hare International Airport, Special Facilities
Revenue Bonds (Compagnie Nationale-Air France), VRDN, AMT, 4% due 5/01/2018 (d) 14,800
Eagle Tax-Exempt Trust, Chicago, Illinois, VRDN (d):
19,800 (Emergency Phone), Series 96C, Class 1302, 3.50% due 1/01/2012 19,800
14,380 GO, Series 95, Class 1301, 3.96% due 1/01/2024 14,380
9,900 GO, Series 98, Class 1301, 3.96% due 1/01/2017 9,900
14,355 Eagle Tax-Exempt Trust, Illinois, Metropolitan Expo Center, VRDN, Series 98,
Class 1306, 3.50% due 6/15/2029 (d) 14,355
9,900 Eagle Tax-Exempt Trust, Illinois State, GO, VRDN, Series 96C, Class 1302,
4.05% due 7/01/2020 (d) 9,900
36,300 Illinois Development Finance Authority, PCR, Refunding (Commonwealth Edison
Company Project), VRDN, Series B, 3.85% due 10/15/2014 (d) 36,300
Illinois Development Finance Authority, Revenue Refunding Bonds, VRDN (d):
6,000 (Olin Corporation Project), Series A, 3.90% due 6/01/2004 6,000
32,000 (Provena Health), Series B, 3.90% due 5/01/2028 (f) 32,000
Illinois Educational Facilities Authority Revenue Bonds, VRDN (d):
20,000 (The Adler Planetarium), 3.90% due 4/01/2031 20,000
50,000 (Art Institute of Chicago), Series A, 3.95% due 3/01/2034 50,000
4,900 (Chicago Historical Society), 3.90% due 12/01/2025 4,900
Illinois Educational Facilities Authority, Revenue Refunding Bonds, VRDN (d):
16,300 (Art Institute of Chicago), 3.95% due 3/01/2027 16,300
17,800 (Northwestern University), 3.95% due 12/01/2025 17,800
Illinois Health Facilities Authority Revenue Bonds (Evanston Hospital
Corporation), CP:
22,000 3.90% due 10/31/2000 22,000
10,000 Series B, 4% due 11/30/2000 10,000
10,000 Series C, 4% due 8/15/2000 10,000
10,000 Series D, 4% due 11/30/2000 10,000
Illinois Health Facilities Authority Revenue Bonds (Revolving Fund Pooled),
VRDN (d):
50,000 Series B, 3.875% due 8/01/2015 50,000
7,000 Series F, 3.875% due 8/01/2015 7,000
Illinois Health Facilities Authority, Revenue Refunding Bonds, VRDN (d):
93,550 (Advocate Health Care), Series B, 4% due 8/15/2022 93,550
19,555 (Little Company of Mary Hospital), Series A, 3.95% due 8/15/2021 (f) 19,555
38,700 (Resurrection Health), Series A, 3.95% due 5/01/2029 (e) 38,700
61,805 (University of Chicago Hospitals), 4% due 8/01/2026 (f) 61,805
18,815 Illinois State, FLOATS, Series SG-60, 3.96% due 8/01/2019 (d) 18,815
27,000 Illinois State Toll Highway Authority, Toll Highway Revenue Refunding
Bonds, VRDN, Series B, 3.95% due 1/01/2016 (d)(e) 27,000
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <S>
Illinois $ 4,600 Illinois Student Assistance Commission, Student Loan Revenue Bonds, VRDN,
(concluded) AMT, Series A, 3.95% due 3/01/2006 (d) $ 4,600
21,350 Regional Transportation Authority, Illinois, FLOATS, Series SG-82, 3.96%
due 6/01/2025 (d) 21,350
Southwestern Illinois Development Authority, Solid Waste Disposal Revenue
Bonds (Shell Oil Company-Wood River Project), VRDN, AMT (d):
11,100 4% due 8/01/2021 11,100
10,600 4% due 4/01/2022 10,600
7,000 Will County, Illinois, Exempt Facilities Revenue Bonds (Amoco Chemical
Company Project), VRDN, AMT, 4% due 3/01/2028 (d) 7,000
Indiana--4.9% 3,050 Elkhart County, Indiana, Mortgage Revenue Bonds (Hubbard Hill Estates),
VRDN, Series A, 3.97% due 7/01/2027 (d) 3,050
Fort Wayne, Indiana, Hospital Authority, Hospital Revenue Bonds (Parkview
Memorial Hospital), VRDN (d):
1,645 Series B, 3.95% due 1/01/2016 1,645
2,700 Series B, 3.90% due 1/01/2020 2,700
3,505 Series C, 3.95% due 1/01/2016 3,505
5,670 Series D, 3.95% due 1/01/2016 5,670
5,800 Hammond, Indiana, PCR, Refunding (Amoco Oil Company Project), VRDN, 3.85%
due 2/01/2022 (d) 5,800
130,000 Indiana Bond Bank, Revenue Notes (Advanced Funding Program Note), Series A-2,
4.75% due 1/18/2001 130,575
Indiana Health Facilities Financing Authority, Hospital Revenue Bonds,
VRDN (d):
7,050 (Capital Access Designated Pool), 3.90% due 1/01/2012 7,050
15,000 (Community Hospitals Project), Series A, 3.97% due 7/01/2027 15,000
Indiana Health Facilities Financing Authority, Hospital Revenue Refunding
Bonds, VRDN (d):
154,700 (Ascension Health Credit), Series B, 3.85% due 11/15/2039 154,700
18,200 (Clairan Health Partners), Series C, 3.85% due 2/15/2026 18,200
37,250 Indiana Secondary Market Educational Loans Inc., Educational Loan Revenue
Bonds, VRDN, AMT, Series B, 3.95% due 12/01/2014 (a)(d) 37,250
33,000 Indiana State Development Finance Authority, Environmental Revenue
Refunding Bonds (USX Corporation Project), CP, 4.05% due 10/05/2000 33,000
Jasper County, Indiana, PCR, Refunding (Northern Indiana Public Service),
VRDN (d):
12,000 Series B, 3.85% due 6/01/2013 12,000
16,300 Series C, 3.85% due 4/01/2019 16,300
9,400 Princeton, Indiana, PCR, Refunding (PSI Energy Incorporated Project), VRDN,
3.85% due 4/01/2022 (d) 9,400
9,000 Purdue University, Indiana, University Revenue Bonds (Student Fee), VRDN,
Series O, 3.80% due 7/01/2019 (d) 9,000
Rockport, Indiana, PCR, Refunding (AEP Generating Company Project),
VRDN (a)(d):
14,200 Series A, 3.90% due 7/01/2025 14,200
7,900 Series B, 3.85% due 7/01/2025 7,900
7,600 Whiting, Indiana, Industrial Sewer and Solid Waste Disposal Revenue Refunding
Bonds (Amoco Oil Company Project), VRDN, AMT, 4.05% due 1/01/2026 (d) 7,600
Iowa--0.8% Iowa Finance Authority, Solid Waste Disposal Revenue Bonds (Cedar River
Paper Company Project), VRDN, AMT (d):
4,730 4% due 3/01/2033 4,730
66,400 Series A, 4% due 7/01/2023 66,400
14,500 Iowa Student Loan Liquidity Corporation, Student Loan Revenue Bonds, VRDN,
AMT, Series B, 3.90% due 12/01/2013 (a)(d) 14,500
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <S>
Kansas--0.3% $ 9,100 Butler County, Kansas, Solid Waste Disposal Facilities Revenue Bonds
(Texaco Refining & Marketing), VRDN, AMT, Series A, 4.05% due
8/01/2024 (d) $ 9,100
17,500 Kansas State Development Finance Authority, Health Facilities Revenue
Bonds (Stormont-Vail), VRDN, Series M, 3.95% due 11/15/2023 (d)(f) 17,500
Kentucky--3.1% 5,100 Ashland, Kentucky, PCR, Refunding (Calgon Carbon Corporation Project),
FLOATS, Series A, 4.15% due 10/01/2006 (d) 5,100
22,700 Carroll County, Kentucky, Collateralized Solid Waste Disposal Facilities
Revenue Bonds (Kentucky Utilities Company Project), VRDN, AMT, Series A,
4.20% due 11/01/2024 (d) 22,700
Daviess County, Kentucky, Solid Waste Disposal Facility Revenue Bonds
(Scott Paper Company Project), VRDN, AMT (d):
44,100 Series A, 4% due 12/01/2023 44,100
16,300 Series A, 4% due 5/01/2024 16,300
26,200 Series B, 4% due 12/01/2023 26,200
21,700 Series B, 4% due 5/01/2024 21,700
Kentucky Asset/Liability Commission, General Fund Revenue Notes, TRAN:
75,000 Series A, 4.25% due 6/28/2000 75,154
15,000 Series B, 4.50% due 6/28/2000 15,024
27,500 Kentucky Association of Counties, Advance Revenue/Cash Flow Borrowing,
TRAN, 4% due 6/30/2000 27,536
19,920 Kentucky Economic Development Finance Authority, Hospital Facilities
Revenue Refunding Bonds (Baptist Healthcare), VRDN, Series C, 3.90% due
8/15/2031 (d)(f) 19,920
38,300 Kentucky State Pollution Abatement and Water Resource Finance Authority
Revenue Bonds (Toyota Motors), VRDN, AMT, 4.75% due 8/13/2006 (d) 38,300
Louisiana--4.1% 5,100 Ascension Parish, Louisiana, PCR, Refunding (Shell Oil Company Project),
VRDN, 3.90% due 9/01/2023 (d) 5,100
17,700 Ascension Parish, Louisiana, Revenue Bonds (BASF Corporation Project),
VRDN, AMT, 4% due 3/01/2025 (d) 17,700
31,500 Calcasieu Parish, Louisiana, IDB, Environmental Revenue Refunding Bonds
(Citgo Petroleum Corp.), VRDN, AMT, 4.05% due 3/01/2025 (d) 31,500
9,760 Eagle Tax-Exempt Trust, Louisiana, VRDN, Series 94, Class 1803, 3.96% due
5/01/2008 (d) 9,760
East Baton Rouge Parish, Louisiana, PCR, Refunding (Exxon Project),
VRDN (d):
19,800 3.80% due 11/01/2019 19,800
26,650 3.85% due 3/01/2022 26,650
1,300 East Baton Rouge Parish, Louisiana, Solid Waste Revenue Bonds (Exxon
Project), VRDN, AMT, 3.90% due 12/01/2028 (d) 1,300
25,000 Jefferson Parish, Louisiana, Hospital Service District Number 001, Hospital
Revenue Bonds (West Jefferson Medical Center), VRDN, Series B, 3.90% due
1/01/2028 (d)(e) 25,000
Louisiana Public Facilities Authority, Hospital Revenue Bonds (Willis-
Knighton Medical Center Project), VRDN (a)(d):
50,800 4% due 9/01/2025 50,800
30,500 4% due 9/01/2027 30,500
Louisiana Public Facilities Authority Revenue Bonds (Christus Health System),
CP, Series B:
10,000 3.95% due 5/08/2000 10,000
20,000 GO, 4.05% due 5/23/2000 20,000
Louisiana State Offshore Terminal Authority, Deepwater Port Revenue
Refunding Bonds (First Stage A-Loop Inc.) (d):
23,150 ACES, 3.85% due 9/01/2006 23,150
24,650 VRDN, 3.85% due 9/01/2008 24,650
24,200 Plaquemines Parish, Louisiana, Environmental Revenue Bonds (BP Exploration
& Oil), VRDN, AMT, 4% due 10/01/2024 (d) 24,200
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <S>
Louisiana $ 4,400 Saint Charles Parish, Louisiana, PCR, Refunding (Shell Oil Company
(concluded) Project), VRDN, 3.80% due 6/01/2005 (d) $ 4,400
Saint Charles Parish, Louisiana, PCR, VRDN, AMT (d):
24,400 (Shell Oil Company--Norco Project), 4% due 11/01/2021 24,400
21,000 (Shell Oil Company Project), Series A, 4% due 10/01/2022 21,000
Saint James Parish, Louisiana, PCR, Refunding (Texaco Inc. Project):
24,030 CP, Series A, 3.65% due 4/25/2000 24,030
15,000 VRDN, Series B, 3.65% due 9/01/2012 (d) 15,000
4,400 South Louisiana Port Commission, Port Revenue Refunding Bonds (Occidental
Petroleum), VRDN, 3.85% due 7/01/2018 (d) 4,400
Maryland--1.7% 30,000 Anne Arundel County, Maryland, BAN, CP, Series B, 3.70% due 5/10/2000 30,000
35,700 Baltimore, Maryland, Port Facilities Revenue Bonds (Occidental Petroleum),
FLOATS, 3.90% due 10/14/2011 (d) 35,700
21,585 Maryland State Community Development Administration, Department of
Housing and Community Development, Revenue Refunding Bonds (Residential),
AMT, Series G, 3.65% due 8/30/2000 21,585
20,200 Maryland State Health and Higher Educational Facilities Authority
Revenue Bonds (University of Maryland Medical System), VRDN, 3.95%
due 7/01/2024 (d) 20,200
Maryland State Health and Higher Educational Facilities Authority,
Revenue Refunding Bonds (Pooled Loan Program), VRDN (d):
30,000 Series A, 3.85% due 4/01/2035 30,000
12,250 Series B, 3.80% due 4/01/2035 12,250
25,000 Montgomery County, Maryland, BAN, CP, 3.90% due 6/12/2000 25,000
Massachusetts-- 20,900 Eagle Tax-Exempt Trust, Massachusetts, GO, VRDN, Series 1993-J, 3.55% due
2.2% 8/01/2005 (d) 20,900
27,300 Massachusetts Municipal Wholesale Electric Company, Power Supply System
Revenue Refunding Bonds, VRDN, Series C, 3.80% due 7/01/2019 (d)(f) 27,300
Massachusetts State Health and Educational Facilities Authority Revenue
Bonds, VRDN (d):
24,975 (Capital Asset Program), Series D, 3.80% due 1/01/2035 (f) 24,975
20,600 (Capital Asset Program), Series E, 3.80% due 1/01/2035 20,600
16,400 (Partners Healthcare System), Series P-1, 3.80% due 7/01/2027 (e) 16,400
6,300 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Capital Asset Program), VRDN, Series B, 3.85% due
7/01/2005 (d)(f) 6,300
15,100 Massachusetts State Water Resources Authority Revenue Bonds, VRDN, Series A,
3.75% due 4/01/2028 (a)(d) 15,100
Massachusetts State Water Resource Authority, Revenue Refunding Bonds,
VRDN (c)(d):
20,000 Sub-Series B, 3.80% due 8/01/2037 20,000
60,200 Sub-Series D, 3.80% due 11/01/2026 60,200
12,400 Worcester, Massachusetts, GO, BAN, Lot A, 4.50% due 8/30/2000 12,425
Michigan--3.3% 16,900 Grand Rapids, Michigan, Water Supply Revenue Refunding Bonds, VRDN, 3.85%
due 1/01/2020 (c)(d) 16,900
8,460 Holly, Michigan, Area School District, FLOATS, Series SG-50, 3.96% due
5/01/2020 (d) 8,460
Kent Hospital Finance Authority, Michigan, Revenue Refunding Bonds
(Spectrum Health), VRDN (d)(f):
24,200 Series B, 3.80% due 1/15/2026 24,200
26,800 Series C, 3.80% due 1/15/2026 26,800
Michigan Municipal Bond Authority Revenue Notes:
22,500 Series B-1, 4.25% due 8/25/2000 22,557
13,460 Series B-2, 4.25% due 8/25/2000 13,496
15,000 Michigan State Building Authority Revenue Bonds, CP, Series 1, 3.65% due
4/27/2000 15,000
7,500 Michigan State, COP (New Center Development), 4.75% due 3/01/2001 7,533
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <S>
Michigan $18,200 Michigan State Hospital Finance Authority Revenue Bonds (Saint Mary
(concluded) Hospital of Livonia), VRDN, Series A, 3.90% due 7/01/2017 (d) $ 18,200
9,450 Michigan State Strategic Fund, Limited Obligation Revenue Bonds, VRDN,
Reserve 1, 3.85% due 9/01/2030 (d) 9,450
11,600 Michigan State Strategic Fund Limited Obligation, Revenue Refunding Bonds
(Consumers Power Company Project), VRDN, Series A, 3.90% due 6/15/2010 (a)(d) 11,600
13,900 Michigan State Strategic Fund, PCR, Refunding (Consumers Power Project),
VRDN, 3.85% due 4/15/2018 (a)(d) 13,900
17,300 Monroe County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Refunding Bonds (Detroit Edison), VRDN, Series CC, 3.90%
due 10/01/2024 (d) 17,300
16,505 Municipal Securities Trust Certificates, Revenue Refunding Bonds (Michigan
State Hospital), VRDN, Series 1997-24, Class A, 3.98% due 12/01/2005 (d)(e) 16,505
Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Bonds
(William Beaumont Hospital), VRDN (d):
11,300 Series J, 3.85% due 1/01/2003 11,300
16,900 Series L, 3.85% due 1/01/2027 16,900
20,600 University of Michigan, University Hospital Revenue Bonds, VRDN, Series A,
3.85% due 12/01/2027 (d) 20,600
29,100 University of Michigan, University Hospital Revenue Refunding Bonds, VRDN,
Series A, 3.85% due 12/01/2019 (d) 29,100
University of Michigan, University Revenue Bonds:
20,150 CP, 3.95% due 5/04/2000 20,150
15,700 (Medical Service Plan), VRDN, Series A, 3.85% due 12/01/2027 (d) 15,700
Minnesota--1.3% Eagle Tax-Exempt Trust, Minnesota, VRDN (d):
46,825 Series 1993-A, 3.55% due 8/01/2004 46,825
24,885 Series 1993-G, 3.95% due 8/01/2007 24,885
24,765 Minnesota School Districts, Tax and Aid Anticipation Borrowing Program
Certificates, Aid Anticipation Certificates Indebitures, Series B, 4%
due 8/23/2000 24,809
12,250 Minnesota State, GO, 4.50% due 8/01/2000 12,289
22,000 University of Minnesota Revenue Bonds, VRDN, Series A, 3.90% due 1/01/2034 (d) 22,000
Mississippi--0.2% 7,000 Jackson County, Mississippi, Industrial Sewer Facilities Revenue Bonds
(Chevron U.S.A. Inc. Project), VRDN, AMT, 4% due 12/15/2024 (d) 7,000
6,500 Jackson County, Mississippi, PCR, Refunding (Chevron U.S.A. Inc. Project),
VRDN, 3.80% due 12/01/2016 (d) 6,500
3,000 Mississippi Hospital Equipment and Facilities Authority Revenue Bonds
(Mississippi Baptist Medical Center), VRDN, 3.90% due 7/01/2012 (d) 3,000
Missouri--0.6% 30,000 Eagle Tax-Exempt Trust, Missouri, VRDN, 3.96% due 8/01/2006 (d) 30,000
Missouri Higher Education Loan Authority, Student Loan Revenue Bonds,
VRDN, AMT (d):
7,800 Series A, 3.95% due 6/01/2017 7,800
20,000 Series B, 3.95% due 6/01/2020 20,000
Nebraska--0.1% NebHelp Inc., Nebraska, Revenue Bonds (Student Loan Program), VRDN (d):
3,550 AMT, Series A, 4% due 12/01/2016 3,550
3,100 Series C, 3.90% due 12/01/2015 (f) 3,100
Nevada--1.1% 108,715 Clark County, Nevada, Airport Improvement Revenue Refunding Bonds, VRDN,
Series A, 3.80% due 7/01/2012 (d)(f) 108,715
7,030 Nevada Housing Division Revenue Bonds (Multi-Unit Housing--Mesquite),
VRDN, AMT, Series B, 3.95% due 5/01/2028 (d) 7,030
New Hampshire-- 7,415 New Hampshire State Business Finance Authority, Resource Recovery
0.1% Revenue Refunding Bonds (Wheelabrator), VRDN, Series A, 3.85% due
1/01/2018 (d) 7,415
5,500 New Hampshire State, HFA, M/F Housing Revenue Bonds (P.R.A. Properties--
Pheasant Run Project), VRDN, AMT, 3.95% due 5/01/2025 (d) 5,500
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
New Jersey-- $27,300 Eagle Tax-Exempt Trust, New Jersey, VRDN, Series 96, Class 3001, 3.44%
1.0% due 2/15/2007 (d) $ 27,300
2,500 New Jersey EDA, Water Facilities Revenue Refunding Bonds (United Water of
New Jersey Inc. Project), VRDN, Series A, 3.80% due 11/01/2026 (a)(d) 2,500
25,000 New Jersey State, CP, 3.75% due 5/09/2000 25,000
New Jersey State Transit Corporation, CP, Series 2000A:
43,700 4% due 6/06/2000 43,700
7,000 4.10% due 6/15/2000 7,000
New Mexico--1.0% 27,600 Farmington, New Mexico, PCR (Arizona Public Service Company), VRDN, AMT,
Series C, 3.90% due 9/01/2024 (d) 27,600
Farmington, New Mexico, PCR, Refunding (Arizona Public Service Company),
VRDN (d):
14,200 Series A, 3.85% due 5/01/2024 14,200
15,400 Series B, 3.85% due 9/01/2024 15,400
16,600 Hurley, New Mexico, PCR (Kennecott Santa Fe), UPDATES, 3.85% due
12/01/2015 (d) 16,600
31,500 New Mexico State Hospital Equipment Loan, Council Revenue Refunding Bonds
(Catholic Health), VRDN, Series B, 3.95% due 12/01/2022 (d) 31,500
New York - 4.2% 10,000 Alexander, New York, Central School District, GO, BAN, 4% due 7/20/2000 10,011
8,000 Central Islip, New York, Unified Free School District, GO, TAN, 4% due
6/30/2000 8,007
24,700 Eagle Tax-Exempt Trust, New York State Memorial (Sloan), VRDN, Series 96,
Class 3202, 3.70% due 7/01/2023 (d) 24,700
Long Island Power Authority, New York, Electric System Revenue Bonds:
49,900 Sub-Series 7-A, 3.65% due 4/01/2025 (f) 49,900
40,000 VRDN, Sub-Series 2, 3.65% due 5/01/2033 (d) 40,000
7,800 VRDN, Sub-Series 5, 3.95% due 5/01/2033 (d) 7,800
25,000 Monroe County, New York, CP, 3.85% due 4/27/2000 25,000
New York City, New York, City Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, VRDN, Series C (c)(d):
3,700 3.80% due 6/15/2022 3,700
54,900 3.80% due 6/15/2023 54,900
New York City, New York, City Municipal Water Finance Authority, Water and
Sewer System Revenue Refunding Bonds, VRDN (d):
21,500 MSTR, Series SGB-27, 3.93% due 6/15/2024 (e) 21,500
10,000 Series A, 3.90% due 6/15/2025 (c) 10,000
21,100 Series G, 3.80% due 6/15/2024 (c) 21,100
3,300 New York City, New York, City Transitional Finance Authority Revenue Bonds,
Future Tax Secured, VRDN, Sub-Series B-2, 3.80% due 11/01/2026 (d) 3,300
New York City, New York, GO, VRDN (d):
14,000 Series B, Sub-Series B-2, 3.80% due 8/15/2003 (f) 14,000
5,000 Series B, Sub-Series B-3, 3.80% due 8/15/2004 (f) 5,000
1,905 Series B-2, Sub-Series B-5, 3.80% due 8/15/2009 (f) 1,905
10,400 Series F-5, 3.65% due 2/15/2016 10,400
3,000 Sub-Series A-7, 3.75% due 8/01/2019 3,000
6,900 New York State Dormitory Authority, Revenue Refunding Bonds (Memorial
Sloan-Kettering), VRDN, Series A, 3.85% due 7/01/2019 (d) 6,900
4,700 New York State Energy Research and Development Authority, PCR, Refunding
(Niagara Mohawk Power Corporation), VRDN, Series C, 3.85% due
12/01/2025 (d) 4,700
17,000 New York State Local Assistance Corporation Revenue Bonds, VRDN, Series A,
3.60% due 4/01/2022 (d) 17,000
51,475 New York State Power Authority, Revenue and General Purpose Bonds, CP,
4% due 9/01/2000 51,475
16,350 New York State Thruway Authority, General Revenue Bonds, VRDN, 3.85% due
1/01/2024 (c)(d) 16,350
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
New York Port Authority of New York and New Jersey, Special Obligation Revenue
(concluded) Refunding Bonds (Versatile Structure Obligation), VRDN (d):
$ 6,900 Series 2, 3.75% due 5/01/2019 $ 6,900
5,500 Series 5, 3.80% due 8/01/2024 5,500
9,000 Saint Johnsville, New York, Central School District, GO, BAN, 4% due
7/27/2000 9,010
North Carolina-- 44,705 Charlotte, North Carolina, Airport Revenue Bonds, VRDN, Series D, 3.80% due
1.0% 7/01/2029 (d)(f) 44,705
1,640 Craven County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Resource Revenue Bonds (Craven Wood Energy Project),
VRDN, AMT, Series C, 4% due 5/01/2011 (d) 1,640
15,270 North Carolina Medical Care Commission, Health Care Facilities Revenue
Bonds (Cabarrus Memorial Hospital Project), VRDN, 3.90% due 3/01/2012 (d) 15,270
North Carolina Medical Care Commission, Hospital Revenue Bonds (d):
1,700 (Duke University Hospital Project), VRDN, Series B, 3.85% due 6/01/2015 1,700
2,000 (Duke University Hospital Project), VRDN, Series C, 3.85% due 6/01/2015 2,000
1,500 (Pooled Financing Project), ACES, Series A, 3.85% due 10/01/2020 1,500
8,700 North Carolina Medical Care Commission Revenue Bonds (Carol Woods Project),
VRDN, 3.90% due 4/01/2021 (d) 8,700
Raleigh Durham, North Carolina, Airport Authority, Special Facility Revenue
Refunding Bonds (American Airlines Inc.), VRDN (d):
8,300 Series A, 3.90% due 11/01/2015 8,300
2,000 Series B, 3.90% due 11/01/2015 2,000
14,500 Wake County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Refunding Bonds (Carolina Power and Light
Company), VRDN, 3.90% due 6/15/2014 (d) 14,500
North Dakota-- 12,400 Grand Forks, North Dakota, Health Care Facilities Revenue Bonds (The United
0.3% Hospital Obligation Group), VRDN, Series A, 3.95% due 12/01/2025 (d) 12,400
15,000 North Dakota State, HFA, Home Mortgage Revenue Bonds (Housing Finance
Program), AMT, Series C, 3.20% due 4/01/2000 15,000
Ohio--1.6% 19,195 Cuyahoga County, Ohio, Hospital Revenue Bonds (The Cleveland Clinic), VRDN,
Series D, 3.90% due 1/01/2026 (d) 19,195
22,275 Eagle Tax-Exempt Trust, Ohio State Turnpike, VRDN, Series 98, Class 3503,
3.50% due 2/15/2026 (d) 22,275
10,500 Eagle Tax-Exempt Trust, Ohio, VRDN, Series 95, Class 3502, 3.96% due
7/01/2015 (d) 10,500
17,640 Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds
(U.S. Health Corporation), VRDN, Series A, 3.90% due 12/01/2021 (d) 17,640
24,950 Montgomery County, Ohio, Revenue Bonds (Miami Valley), CP, Series 1998-B,
3.75% due 4/13/2000 24,950
46,700 Montgomery County, Ohio, Revenue Refunding Bonds (Miami Valley Hospital),
VRDN, Series A, 3.85% due 11/15/2022 (d) 46,700
1,865 Ohio HFA, M/F Housing Revenue Bonds (Kenwood Congregate-Retire), VRDN,
3.95% due 12/01/2015 (d) 1,865
12,300 Ohio State Air Quality Development Authority Revenue Bonds, VRDN, Series B,
3.90% due 12/01/2015 (d) 12,300
8,100 Ohio, State Air Quality Development Authority, Revenue Refunding Bonds
(Cincinnati Gas and Electric), VRDN, Series B, 3.85% due 9/01/2030 (d) 8,100
4,200 Paudling County, Ohio, Solid Waste Disposal Revenue Bonds (Lafarge
Corporation Project), VRDN, AMT, 3.80% due 8/01/2026 (d) 4,200
Oklahoma--0.3% 10,250 Grand River Dam Authority, Oklahoma, Revenue Bonds, FLOATS, Series SG-42,
3.96% due 6/01/2009 (d) 10,250
19,500 Oklahoma State Industries Authority, Revenue Refunding Bonds (Integris Baptist),
VRDN, Series B, 3.90% due 8/15/2029 (d)(f) 19,500
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Oregon--0.2% $ 8,700 Oregon State Health, Housing, Educational and Cultural Facilities Authority
Revenue Bonds (Sacred Heart Medical Center), VRDN, Series A, 3.90% due
11/01/2028 (d) $ 8,700
8,945 Portland, Oregon, Revenue Refunding Bonds, BAN, Series B, 4.50% due
6/01/2000 8,956
Pennsylvania-- 6,700 Allegheny County, Pennsylvania, Higher Education Building Authority,
3.2% University Revenue Bonds (Carnegie Mellon University), VRDN, 3.85% due
12/01/2033 (d) 6,700
18,700 Berks County, Pennsylvania, IDA, Revenue Bonds (Healthcare-Lutheran
Services), VRDN, Series A, 3.90% due 1/01/2028 (a)(d) 18,700
2,500 Butler County, Pennsylvania, IDA, IDR, Refunding (Wetterau Finance Co.
Project), VRDN, 4% due 12/01/2014 (d) 2,500
11,100 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project), UPDATES,
3.90% due 12/01/2009 (d) 11,100
15,700 Delaware County, Pennsylvania, IDA, PCR, Refunding (Philadelphia
Electric Company), VRDN, Series A, 3.85% due 8/01/2016 (d) 15,700
32,700 Delaware Valley, Pennsylvania, Regional Finance Authority, Local
Government Revenue Bonds, VRDN, Mode 1, 3.85% due 8/01/2016 (d) 32,700
Eagle Tax-Exempt Trust, Pennsylvania GO, VRDN (d):
18,735 Series 94, Class 3803, 3.95% due 5/01/2008 18,735
12,870 Series 96C, Class 4301, 3.96% due 5/01/2015 12,870
35,000 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, 3.90% due
12/01/2028 (d)(e) 35,000
18,750 Geisinger Authority, Pennsylvania, Health System Revenue Refunding Bonds
(Penn State--Geisinger Health), VRDN, Series B, 3.85% due 8/15/2028 (d) 18,750
12,000 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 3.96% due
9/15/2020 (d) 12,000
Pennsylvania State Higher Education Assistance Agency, Student Loan
Revenue Bonds, VRDN, AMT (d):
11,200 Series A, 4% due 1/01/2018 11,200
5,000 Series B, 4% due 7/01/2018 5,000
16,975 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds (Temple University), FLOATS, 3.80% due
10/01/2009 (b)(d) 16,975
2,300 Pennsylvania State Higher Educational Facilities Authority, Revenue
Refunding Bonds (Carnegie Mellon University), VRDN, Series A, 3.85%
due 11/01/2025 (d) 2,300
6,600 Philadelphia, Pennsylvania, Authority for IDR (Fox Chase Cancer Center
Project), VRDN, 3.85% due 7/01/2025 (d) 6,600
25,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, GO, CP, 3.80% due
5/12/2000 25,000
Philadelphia, Pennsylvania, School District, GO, TRAN:
15,000 Series B, 4% due 6/30/2000 15,020
16,000 Series C, 4% due 6/30/2000 16,021
9,050 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue
Refunding Bonds (Northeastern Power Company), VRDN, Series A, 3.85%
due 12/01/2022 (d) 9,050
14,300 South Fork, Pennsylvania, Municipal Authority, Hospital Revenue Refunding
Bonds (Conemaugh Health System), VRDN, Series A, 4% due 7/01/2028 (d)(f) 14,300
14,795 York, Pennsylvania, General Authority, Pooled Financing Revenue Bonds,
VRDN, Sub Series 96-B, 3.90% due 9/01/2026 (a)(d) 14,795
South Carolina-- Berkeley County, South Carolina, Exempt Facilities, Industrial Revenue
2.1% Bonds (Amoco Chemical Company Project), AMT, VRDN (d):
15,300 4% due 4/01/2027 15,300
5,700 4% due 4/01/2028 5,700
9,350 Berkeley County, South Carolina, Pollution Control Facilities, Revenue
Refunding Bonds (Amoco Chemical Company Project), VRDN, 3.85% due
7/01/2012 (d) 9,350
25,000 Charleston County, South Carolina, School District, GO, 4% due 4/14/2000 25,003
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
South Carolina $14,850 Eagle Tax-Exempt Trust, South Carolina Public Works, VRDN, Series 96A,
(concluded) 3.96% due 1/01/2022 (d) $ 14,850
Florence County, South Carolina, Solid Waste Disposal and Wastewater
Treatment Revenue Bonds (Roche Carolina Inc. Project), VRDN, AMT (d):
35,000 4% due 4/01/2026 35,000
19,200 4% due 4/01/2027 19,200
40,000 Greenville County, South Carolina, School District, GO, BAN, 4% due
5/01/2000 40,021
South Carolina Jobs EDA, Economic Development Revenue Bonds (Wellman
Inc. Project), VRDN, AMT (d):
5,400 4% due 12/01/2010 5,400
12,095 4% due 12/01/2012 12,095
South Carolina State Public Services Authority, Electric Revenue and
Electric System Expansion Revenue Bonds, CP:
16,091 3.75% due 4/11/2000 16,091
18,800 3.80% due 5/18/2000 18,800
South Dakota-- 13,300 Lawrence County, South Dakota, Solid Waste Disposal Revenue Bonds
0.1% (Homestake Mining), VRDN, AMT, Series A, 3.95% due 7/01/2032 (d) 13,300
Tennessee--2.6% Clarksville, Tennessee, Public Building Authority Revenue Bonds, Pooled
Financing (Tennessee Municipal Bond Fund), VRDN (d):
39,410 4% due 11/01/2027 39,410
30,000 4% due 6/01/2029 30,000
9,400 Cleveland, Tennessee, IDB, Revenue Bonds (Newly Weds Project), VRDN, AMT,
4.05% due 1/01/2012 (d) 9,400
Knoxville, Tennessee, Utilities Board Revenue Bonds, VRDN (d)(e):
8,700 (Sub-Gas System), 3.85% due 1/15/2005 8,700
10,000 (Sub-Wastewater System), 3.80% due 1/15/2005 10,000
8,100 Loudon, Tennessee, IDB, PCR, Refunding (A.E. Staley Manufacturing Co.
Project), VRDN, 3.95% due 9/01/2001 (d) 8,100
13,000 Montgomery County, Tennessee, Public Building Authority, Pooled Financing
Revenue Bonds (Montgomery County Loan), VRDN, 4% due 7/01/2019 (d) 13,000
14,955 Morristown, Tennessee, IDB, PCR, Refunding (Akzo Chemicals, Inc. Project),
VRDN, 3.95% due 8/01/2001 (d) 14,955
15,000 Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local
Government Public Improvement II, VRDN, Series F-3, 3.90% due
6/01/2005 (a)(d) 15,000
Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local
Government Public Improvement III:
5,000 CP, Series D-6, 2.95% due 6/01/2000 (a) 5,000
26,500 VRDN, AMT, Series B-1, 3.95% due 6/01/2021 (a)(d) 26,500
10,000 VRDN, Series D-2, 3.90% due 6/01/2017 (a)(d) 10,000
15,930 VRDN, Series E-1, 3.90% due 6/01/2025 (d) 15,930
10,000 VRDN, Series E-4, 3.90% due 6/01/2025 (d) 10,000
Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local
Government Public Improvement IV, VRDN (d)(e):
9,500 Series B-1, 3.80% due 6/01/2020 9,500
10,000 Series B-2, 3.80% due 6/01/2019 10,000
7,000 Series B-3, 3.65% due 6/01/2013 7,000
Shelby County, Tennessee, CP:
17,000 GO, Refunding, Series A, 4.10% due 6/09/2000 17,000
14,800 TAN, Series 98-A, 4% due 6/13/2000 14,800
Texas--18.2% Austin, Texas, Utility System Revenue Bonds, CP, Series A:
25,418 3.90% due 4/03/2000 25,418
20,000 3.90% due 4/04/2000 20,000
10,000 Brazos River Authority, Texas, Harbor Navigational District, Brazoria
County Revenue Bonds (BASF Corp.), VRDN, AMT, 4% due 4/01/2032 (d) 10,000
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Texas Brazos River Authority, Texas, PCR, Refunding (Texas Utilities Electric
(continued) Company), VRDN, AMT (d):
$ 8,400 Series A, 4% due 3/01/2026 (a) $ 8,400
15,600 Series A, 4% due 4/01/2030 15,600
9,700 Series A, 4% due 2/01/2032 (f) 9,700
24,005 Series B, 3.95% due 2/01/2032 (f) 24,005
15,800 Series C, 4% due 6/01/2030 (a) 15,800
8,400 Series C, 4% due 2/01/2032 (f) 8,400
20,100 Coastal Bend Health Facilities Development Corp., Texas, Revenue Bonds
(Incarnate World Health System), UPDATES, Series B, 3.85% due
8/15/2028 (a)(d) 20,100
4,000 Corpus Christi, Texas, Industrial Development Corp., IDR (Dedietrich USA
Incorporated Project), VRDN, AMT, 4.05% due 11/01/2008 (d) 4,000
20,000 Dallas, Texas, CP, 4.05% due 8/08/2000 20,000
Dallas-Fort Worth, Texas, Regional Airport Revenue Bonds, MSTR, VRDN,
AMT (d)(f):
25,300 Series SGB-49, 4% due 11/01/2023 25,300
9,495 Series SGB-52, 4.01% due 11/01/2017 9,495
Dallas-Fort Worth, Texas, Regional Airport Revenue Refunding Bonds, MSTR,
VRDN (d):
15,785 AMT, Series SGB-46, 4.01% due 11/01/2020 (f) 15,785
6,600 Series SGB-5, 3.96% due 11/01/2015 (c) 6,600
9,900 Eagle Tax-Exempt Trust, Dallas-Fort Worth, Texas, VRDN, Series 96C,
Class 4301, 4.05% due 11/01/2005 (d) 9,900
5,300 Grapevine, Texas, Industrial Development Corporation, Airport Revenue
Refunding Bonds (Southern Air Transport), VRDN, 3.95% due 3/01/2010 (d) 5,300
Gulf Coast, Texas, IDA, Marine Terminal Revenue Bonds (Amoco Oil Company
Project), VRDN (d):
6,000 3.85% due 6/01/2000 6,000
7,300 AMT, 4% due 4/01/2028 7,300
Gulf Coast IDA, Texas, Solid Waste Disposal Revenue Bonds (Citgo Petroleum
Corporation Project), VRDN, AMT (d):
25,200 4.05% due 5/01/2025 25,200
7,400 4.05% due 4/01/2026 7,400
28,500 Gulf Coast Waste Disposal Authority, Texas, Environmental Facilities
Revenue Refunding Bonds (Amoco Oil Company Project), VRDN, AMT, 4% due
1/01/2026 (d) 28,500
36,300 Gulf Coast Waste Disposal Authority, Texas, PCR (Amoco Oil Company
Project), VRDN, AMT, 4% due 6/01/2024 (d) 36,300
Gulf Coast Waste Disposal Authority, Texas, PCR, Refunding, VRDN (d):
20,200 (Amoco Oil Company Project), 3.80% due 10/01/2017 20,200
9,400 (Exxon Project), 3.85% due 6/01/2020 9,400
17,710 Harris County, Texas, FLOATS, Series SG-45, 3.96% due 8/15/2016 (d) 17,710
Harris County, Texas, GO, Refunding, Toll Road, Sub-Lien, VRDN (d):
20,370 Series D, 3.90% due 8/01/2015 20,370
4,900 Series E, 3.90% due 8/01/2015 4,900
25,000 Series H, 3.90% due 8/01/2020 25,000
Harris County, Texas, Health Facilities Development Corporation, Hospital
Revenue Refunding Bonds:
98,190 (Methodist Hospital), VRDN, 3.85% due 12/01/2025 (d) 98,190
130,940 (Methodist Hospital), VRDN, 3.85% due 12/01/2026 (d) 130,940
37,100 (Memorial Hospital System Project), CP, Series B, 3.85% due
4/05/2000 (f) 37,100
Harris County, Texas, Health Facilities, Development Corporation Revenue
Refunding Bonds (Saint Luke's Episcopal Hospital), VRDN (d):
33,800 Series A, 3.95% due 2/15/2027 33,800
17,360 Series B, 3.95% due 2/15/2027 17,360
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Texas $10,400 Harris County, Texas, Health Facilities Development Corporation, Special
(continued) Facilities Revenue Bonds (Texas Medical Center Project), VRDN, 3.90% due
2/15/2022 (d)(f) $ 10,400
Harris County, Texas, Industrial Development Corporation, PCR (Exxon
Project), VRDN (d):
12,000 3.85% due 3/01/2024 12,000
17,100 3.85% due 3/01/2024 17,100
8,100 AMT, 3.90% due 8/15/2027 8,100
18,300 Harris County, Texas, Industrial Development Corporation, Revenue
Refunding Bonds (Shell Oil Company Project), VRDN, 3.90% due
4/01/2027 (d) 18,300
Harris County, Texas, Industrial Development Corporation, Solid
Waste Disposal Revenue Bonds, VRDN, AMT (d):
46,100 (Deer Park Limited Partnership), Series A, 4.15% due 2/01/2023 46,100
18,550 (Exxon Project), 3.90% due 4/01/2032 18,550
Hockley County, Texas, Industrial Development Corporation, PCR, CP:
10,000 (Amoco Corporation Project), 3.85% due 5/01/2000 10,000
43,450 (Amoco Oil Company Project-Standard Oil Company), 4.20% due 9/01/2000 43,450
12,500 Houston, Texas, Higher Education Finance Corporation, Higher Education
Revenue Bonds (Rice University), CP, 3.75% due 5/04/2000 12,500
21,100 Lubbock, Texas, Health Facilities Development Corporation Revenue
Refunding Bonds (Saint Joseph Health System), VRDN, 3.85% due 7/01/2013 (d) 21,100
16,700 North Central Texas, Health Facility Development Corporation Revenue Bonds
(Methodist Hospitals-Dallas), VRDN, Series B, 3.90% due 10/01/2015 (d)(f) 16,700
North Texas Higher Education Authority Inc., Student Loan Revenue Bonds,
VRDN, AMT (a)(d):
12,800 Series C, 3.95% due 4/01/2020 12,800
13,700 Series F, 3.95% due 4/01/2020 13,700
North Texas Higher Education Authority Inc., Student Loan Revenue
Refunding Bonds, VRDN, AMT (d):
27,900 3.95% due 3/01/2005 27,900
26,000 3.90% due 12/01/2032 26,000
29,000 Series A, 3.95% due 4/01/2005 29,000
5,000 Series A, 3.95% due 4/01/2020 5,000
Panhandle-Plains, Texas, Higher Education Authority Incorporated, Student
Loan Revenue Bonds, VRDN, AMT, Series A (d):
9,000 3.90% due 6/01/2021 9,000
13,700 3.90% due 6/01/2025 13,700
4,700 Panhandle-Plains, Texas, Higher Education Authority Incorporated,
Student Loan Revenue Refunding Bonds, VRDN, AMT, Series A, 3.90% due
6/01/2008 (d) 4,700
20,000 Port Arthur, Texas, Navigation District Revenue Bonds (BASF Corporation
Project), VRDN, AMT, 4% due 4/01/2033 (d) 20,000
19,400 Port Arthur, Texas, Navigation District Revenue Refunding Bonds (Texaco Inc.
Project), VRDN, 3.90% due 10/01/2024 (d) 19,400
18,800 Port Corpus Christi, Texas, Industrial Development Corporation, Sewer and
Solid Waste Revenue Bonds (Citgo Petroleum Corporation Project), VRDN, AMT,
4.05% due 4/01/2026 (d) 18,800
20,600 Sabine River Authority, Texas, PCR, Refunding (Texas Utilities Electric
Company Project), VRDN, Series A, 3.85% due 3/01/2026 (a)(d) 20,600
15,900 Sabine River Authority, Texas, PCR (Texas Utilities Electric Company
Project), VRDN, AMT, Series B, 3.95% due 3/01/2026 (a)(d) 15,900
11,600 San Antonio, Texas, Higher Education Authority, Revenue Refunding Bonds
(Trinity University Project), VRDN, 3.85% due 4/01/2004 (d) 11,600
10,000 San Antonio, Texas, Hotel Occupancy Revenue Bonds, FLOATS, Series SG-51,
3.96% due 8/15/2019 (d) 10,000
2,200 South Texas Higher Education Authority Incorporated Revenue Bonds, VRDN,
AMT, 3.90% due 12/01/2027 (d)(f) 2,200
16,300 Southwest Texas, Higher Education Authority Incorporated, Revenue Refunding
Bonds (Southern Methodist University), VRDN, 3.90% due 7/01/2015 (d) 16,300
10,000 Texas Municipal Power Agency Revenue Bonds, CP, 3.90% due 5/08/2000 10,000
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Texas Texas State Public Finance Authority Revenue Bonds, GO, CP, Series A:
(concluded) $ 11,000 3.80% due 5/10/2000 $ 11,000
49,800 3.90% due 5/11/2000 49,800
383,000 Texas State, TRAN, Series A, 4.50% due 8/31/2000 384,246
28,400 Texas State, Water Development Board, VRDN, Series A, 3.90% due 3/01/2015 (d) 28,400
21,200 Trinity River Authority, Texas, PCR, Refunding (Utilities Electric Company),
VRDN, AMT, Series A, 4% due 3/01/2026 (a)(d) 21,200
25,000 University of Texas, University Revenue Bonds, CP, 3.80% due 5/03/2000 25,000
28,600 West Side Calhoun County, Texas, Development Revenue Bonds (Sohio Chemical
Company Project), UPDATES, 3.85% due 12/01/2015 (d) 28,600
4,200 West Side Calhoun County, Texas, Navigation District Sewer and Solid Waste
District Revenue Bonds (BP Chemicals Inc. Project), VRDN, AMT, 4% due
4/01/2031 (d) 4,200
Utah--3.1% 70,800 Emery County, Utah, PCR, Refunding (Pacificorp Projects), VRDN, 3.90% due
11/01/2024 (a)(d) 70,800
Intermountain Power Agency, Utah, Power Supply Revenue Bonds, CP:
12,000 Series B-2, 4% due 6/07/2000 12,000
15,000 Series B-4, 3.90% due 5/04/2000 15,000
25,000 Series B-4, 3.90% due 5/05/2000 25,000
27,600 Salt Lake City, Utah, Revenue Bonds, Pooled, VRDN, Class A, 3.90% due
1/01/2020 (d) 27,600
Salt Lake County, Utah, PCR, Refunding (Service Station Holdings Project),
VRDN (d):
36,900 3.85% due 2/01/2008 36,900
43,115 Series B, 3.85% due 8/01/2007 43,115
6,000 Utah State Board of Regents, Student Loan Revenue Bonds, VRDN, AMT,
Series C, 3.95% due 11/01/2013 (a)(d) 6,000
33,500 Utah State Board of Regents, Student Loan Revenue Refunding Bonds, VRDN,
AMT, Series L, 3.95% due 11/01/2025 (a)(d) 33,500
Utah State, GO, Refunding, VRDN (d):
11,000 Series A, 3.85% due 7/01/2016 11,000
18,000 Series D, 3.85% due 7/01/2016 18,000
12,500 Weber County, Utah, Hospital Revenue Bonds (IHC Health Services), VRDN,
Series A, 3.90% due 2/15/2031 (d) 12,500
Virginia--0.6% 8,885 Eagle Tax-Exempt Trust, Virginia, VRDN, Series 95, Class 4602, 3.96% due
1/15/2013 (d) 8,885
Norfolk, Virginia, IDA Revenue Bonds, CP:
30,000 (Pooled Financing Program--Sentara Hospital), 4% due 6/15/2000 30,000
21,600 (Sentara Hospital-Norfolk Project), Series A, 3.70% due 4/13/2000 21,600
Washington--3.5% 17,025 Eagle Tax-Exempt Trust, Washington, GO, VRDN, Series 96C, Class 4704, 4.15%
due 4/01/2011 (d) 17,025
17,000 King County, Washington, Sewer System, CP, 3.95% due 6/14/2000 17,000
30,200 Snohomish County, Washington, Public Utility District Number 001, Electric
Revenue Bonds (Generation System), VRDN, 3.80% due 1/01/2025 (d)(f) 30,200
Washington State Housing Finance Commission, M/F Housing Revenue Bonds,
VRDN, AMT (d):
6,400 (Arbors on the Park Project), 4.10% due 10/01/2024 6,400
10,190 (Courtside Apartments Project), 4% due 1/01/2026 10,190
Washington State Public Power Supply Systems, Electric Revenue Refunding
Bonds, VRDN (d)(f):
25,000 (Project Number Two), Series 2A-1, 3.80% due 7/01/2012 25,000
49,000 (Project Number Two), Series 2A-2, 3.80% due 7/01/2012 49,000
159,500 (Project Number Three), Series 3-A, 3.80% due 7/01/2018 159,500
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Schedule of Investments as of March 31, 2000 (concluded) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Washington $ 9,950 Washington State Public Power Supply Systems, Revenue Bonds (Nuclear
(concluded) Project Number Two), FLOATS, Series PMD-3, 4.01% due 7/01/2012 (d) $ 9,950
Washington State Public Power Supply Systems, Revenue Refunding Bonds
(Nuclear Project Number One), VRDN (d):
5,520 Series 1A-1, 3.90% due 7/01/2017 5,520
22,750 Series 1A-2, 3.80% due 7/01/2017 22,750
7,500 Yakima County, Washington, Public Corporation Revenue Bonds (Macro Plastics
Inc. Project), VRDN, AMT, 4.05% due 12/01/2026 (d) 7,500
West Virginia-- 11,220 Hancock County, West Virginia, County Commission, IDR, Refunding (The Boc
0.2% Group Inc. Project), VRDN, 3.95% due 8/01/2005 (d) 11,220
13,600 Marshall County, West Virginia, PCR (Mountaineer Carbon Co.), UPDATES, 3.85%
due 12/01/2020 (d) 13,600
Wisconsin--1.0% 14,850 Eagle Tax-Exempt Trust, Wisconsin Ball Park, VRDN, Series 98, Class 4901,
3.50% due 12/15/2026 (d) 14,850
1,230 Eagle Tax-Exempt Trust, Wisconsin Housing and Economy, VRDN, Series 94C,
Class 4901, 3.96% due 9/01/2015 (d) 1,230
5,660 Hartland, Wisconsin, IDR (Commercial Communications Inc. Project), VRDN,
AMT, 4.10% due 8/01/2009 (d) 5,660
19,000 Pleasant Prairie, Wisconsin, Pollution Revenue Refunding Bonds (Wisconsin
Electric Power Company), VRDN, Series C, 3.95% due 9/01/2030 (d) 19,000
7,500 Racine, Wisconsin, Unified School District, TRAN, 3.75% due 7/06/2000 7,503
16,000 Sheboygan, Wisconsin, PCR, Refunding (Wisconsin Power and Light Company
Project), VRDN, Series A, 3.90% due 9/01/2015 (d) 16,000
22,000 Waukesha, Wisconsin, School District, GO, TRAN, 4.10% due 8/22/2000 22,044
14,365 Wisconsin State Department of Transportation, CP, 3.60% due 4/07/2000 14,365
Wyoming--1.1% 10,000 Kemmerer, Wyoming, PCR (Exxon Corporation Project), DATES, 3.80% due
11/01/2014 (d) 10,000
Lincoln County, Wyoming, PCR (Exxon Project)(d):
13,000 DATES, Series A, 3.90% due 11/01/2014 13,000
8,400 VRDN, AMT, Series B, 3.90% due 7/01/2017 8,400
12,960 Lincoln County, Wyoming, PCR, Refunding (Pacificorp Projects), VRDN, 3.90%
due 11/01/2024 (a)(d) 12,960
17,150 Sublette County, Wyoming, PCR (Exxon Project), DATES, 3.85% due
11/01/2014 (d) 17,150
Sweetwater County, Wyoming, PCR, Refunding, VRDN (d):
13,900 (Idaho Power Company Project), Series C, 3.85% due 7/15/2026 13,900
12,000 (Pacificorp Project), 3.90% due 11/01/2024 (a) 12,000
18,000 (Pacificorp Project), Series A, 3.80% due 7/01/2015 18,000
Uinta County, Wyoming, PCR, Refunding, VRDN (d):
5,900 (Amoco Project), 3.80% due 7/01/2026 5,900
500 (Chevron USA Inc. Project), 3.80% due 12/01/2022 500
Total Investments (Cost--$10,178,845++)--99.9% 10,178,845
Other AssetsLess Liabilities--0.1% 9,947
-----------
Net Assets--100.0% $10,188,792
===========
<FN>
(a)AMBAC Insured.
(b)Escrowed to maturity.
(c)FGIC Insured.
(d)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at March 31, 2000.
(e)FSA Insured.
(f)MBIA Insured.
++Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Statement of Assets and Liabilities as of March 31, 2000
<S> <C> <C>
Assets:
Investments, at value (identified cost--$10,178,844,753) $10,178,844,753
Cash 2,171
Receivables:
Interest $ 62,550,069
Securities sold 14,162,542 76,712,611
---------------
Prepaid registration fees and other assets 216,007
---------------
Total assets 10,255,775,542
---------------
Liabilities:
Payables:
Securities purchased 60,095,400
Distributor 3,141,392
Investment adviser 2,911,982
Dividends to shareholders 3,963
Beneficial interest redeemed 76 66,152,813
---------------
Accrued expenses and other liabilities 831,145
---------------
Total liabilities 66,983,958
---------------
Net Assets $10,188,791,584
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $1,019,050,663
Paid-in capital in excess of par 9,170,491,194
Accumulated realized capital losses--net (750,273)
---------------
Net Assets--Equivalent to $1.00 per share based on 10,190,506,630 shares of
beneficial interest outstanding $10,188,791,584
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Statement of Operations for the Year Ended March 31, 2000
<S> <C> <C>
Investment Income:
Interest and amortization of premium and discount earned $ 324,544,536
Expenses:
Investment advisory fees $ 36,576,047
Distribution fees 11,800,900
Transfer agent fees 1,272,427
Registration fees 711,353
Accounting services 484,036
Custodian fees 243,446
Professional fees 172,243
Pricing fees 57,997
Printing and shareholder reports 56,308
Trustees' fees and expenses 46,643
Other 106,106
---------------
Total expenses 51,527,506
---------------
Investment income--net 273,017,030
Realized Loss on Investments--Net (173,225)
---------------
Net Increase in Net Assets Resulting from Operations $ 272,843,805
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended
March 31,
2000 1999
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income--net $ 273,017,030 $ 263,902,068
Realized gain (loss) on investments--net (173,225) 323,017
--------------- ---------------
Net increase in net assets resulting from operations 272,843,805 264,225,085
--------------- ---------------
Dividends to Shareholders:
Investment income--net (273,017,030) (263,902,068)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (273,017,030) (263,902,068)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares 35,370,860,092 33,522,924,440
Net asset value of shares issued to shareholders in reinvestment of dividends 273,013,356 263,901,186
--------------- ---------------
35,643,873,448 33,786,825,626
Cost of shares redeemed (35,185,040,095) (33,413,722,416)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 458,833,353 373,103,210
--------------- ---------------
Net Assets:
Total increase in net assets 458,660,128 373,426,227
Beginning of year 9,730,131,456 9,356,705,229
--------------- ---------------
End of year $10,188,791,584 $ 9,730,131,456
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA Tax-Exempt Fund
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ---------- ---------- ---------- ----------
Investment income--net .03 .03 .03 .03 .03
Realized gain (loss) on investments--net --++ --++ --++ --++ --++
----------- ---------- ---------- ---------- ----------
Total from investment operations .03 .03 .03 .03 .03
----------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.03) (.03) (.03) (.03) (.03)
----------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ==========
Total Investment Return 2.91% 2.87% 3.16% 3.00% 3.31%
=========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .54% .55% .55% .55% .55%
=========== ========== ========== ========== ==========
Investment income--net 2.87% 2.83% 3.11% 2.94% 3.26%
=========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $10,188,792 $9,730,131 $9,356,705 $8,347,278 $8,164,160
=========== ========== ========== ========== ==========
++Amount is less than $.01 per share.
See Notes to Financial Statements.
</TABLE>
CMA Tax-Exempt Fund
Notes to Financial Statements
1. Significant Accounting Policies:
CMA Tax-Exempt Fund (the "Fund") is registered under the Investment
Company Act of 1940 as a no-load, 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. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(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 are declared
from the total of net investment income, excluding discounts earned
other than original issue discounts. Net realized capital gains, if
any, are normally distributed annually after deducting prior years'
loss carryforward. The Fund may distribute capital gains more
frequently than annually in order to maintain the Fund's net asset
value at $1.00 per share.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). 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: .50%
of the Fund's average daily net assets not exceeding $500 million;
.425% of the average daily net assets in excess of $500 million but
not exceeding $1 billion; and .375% of the average daily net assets
in excess of $1 billion.
CMA Tax-Exempt Fund
Notes to Financial Statements (concluded)
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S")
receives a distribution fee from the Fund at the end of each month
at the annual rate of .125% of the average daily net assets of the
Fund. 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.
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 FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased, reinvested and redeemed during the
periods corres-ponds to the amounts included in the Statements of
Changes in Net Assets for net proceeds from sale of shares, value of
shares reinvested and cost of shares redeemed, respectively, since
shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 2000, the Fund had a net capital loss carryforward of
approximately $750,000, of which $629,000 expires in 2003 and
$121,000 expires in 2008. This amount will be available to offset
like amounts of any future taxable gains.
<AUDIT-REPORT>
CMA Tax-Exempt Fund
Independent Auditors' Report
The Board of Trustees and Shareholders,
CMA Tax-Exempt Fund:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of CMA Tax-
Exempt Fund as of March 31, 2000, the related statements of
operations for the year then ended and changes in net assets for
each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period
then ended. These financial statements and the financial highlights
are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned at March 31, 2000 by correspondence
with the custodian and broker. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
CMA
Tax-Exempt Fund as of March 31, 2000, the results of its operations,
the changes in its net assets, and the financial highlights for the
respective stated periods in accordance with accounting principles
generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 10, 2000
</AUDIT-REPORT>
CMA Tax-Exempt Fund
Important Tax Information (unaudited)
All of the net investment income distributions paid daily by CMATax-
Exempt Fund during its taxable year ended March 31, 2000 qualify as
tax-exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund
during the year.
Please retain this information for your records.
CMA Tax-Exempt Fund
Officers and Trustees
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Vincent R. Giordano--Senior Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Helen Marie Sheehan--Vice President
Donald C. Burke--Vice President and Treasurer
Ira P. Shapiro--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
