MERRILL LYNCH
RETIREMENT
RESERVES
MONEY FUND
Merrill Lynch
Retirement Series Trust
[GRAPHIC OMITTED]
STRATEGIC
Performance
Semi-Annual Report
April 30, 1999
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
DEAR SHAREHOLDER
For the six-month period ended April 30, 1999, Merrill Lynch Retirement Reserves
Money Fund's Class I and Class II Shares had net annualized yields of 4.76%* and
4.55%,* respectively. The Fund's Class I and Class II Shares had 7-day yields as
of April 30, 1999 of 4.57% and 4.36%, respectively.
The average portfolio maturity for Merrill Lynch Retirement Reserves Money Fund
at April 30, 1999 was 78 days, compared to 75 days at October 31, 1998.
The Environment
There were some conflicting signals regarding the future direction of the US
economy during the six months ended April 30, 1999. However, on balance the
economic outlook continued to be positive. The US economic expansion is ongoing,
especially in the consumer sector. Economic growth is not occurring at
inflationary rates, although the Organization for Petroleum Exporting Countries
successfully engineered an increase in the price of crude oil. Against this
backdrop, the US Federal Reserve Board kept monetary policy on hold. Outside of
the United States, signs of growth are less apparent in other major industrial
economies. Although the crisis in Yugoslavia has raised serious geopolitical
concerns, it was not a significant factor in the economic or investment outlook.
In Japan, there are not yet clear signs that Japan's economy is improving, and
the emerging economies remain tentative.
In the US capital markets, long-term interest rates stabilized somewhat by April
30, 1999 after rising thus far in 1999. Spreads between yields on Treasury
securities and corporate issues of similar maturities have narrowed somewhat.
However, the major news in the US capital markets was again in the stock market.
As the US stock market reached new highs, the advance broadened beyond
relatively few large-capitalization technology stocks to the previously
languishing cyclical sectors.
For the six-month period ended April 30, 1999, we held a modestly constructive
view on the market. On the heels of the Federal Reserve Board's three successive
moves to lower interest rates by a total of 75 basis points (0.75%), we reduced
Merrill Lynch Retirement Reserves Money Fund's holdings in US Treasury
securities and Government agency issues in deference to other high-quality money
market instruments.
The Fund's portfolio composition at the end of the April period and as of our
last report to shareholders is detailed below:
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4/30/99 10/31/98
- --------------------------------------------------------------------------------
Bank Notes ...................................... 9.0% 7.7%
Certificates of Deposit ......................... 0.8 1.5
Certificates of Deposit--European ............... 1.0 1.7
Certificates of Deposit--Yankee ................. 11.9 6.6
Commercial Paper ................................ 50.2 43.6
Corporate Notes ................................. 13.0 12.9
Funding Agreements .............................. 0.9 0.7
Master Notes .................................... 1.0 1.1
Time Deposits ................................... 0.1 --
US Government, Agency &
Instrumentality Obligations--
Discount Notes ............................... 1.8 12.9
US Government, Agency &
Instrumentality Obligations--
Non-Discount Notes ........................... 13.4 12.0
Liabilities in Excess of Other Assets ........... (3.1) (0.7)
----- -----
Total ........................................... 100.0% 100.0%
===== =====
- --------------------------------------------------------------------------------
*Based on a constant investment throughout the period, with dividends compounded
daily, and reflecting a net return to the investor after all expenses.
1
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
In Conclusion
We appreciate your continued interest in Merrill Lynch Retirement Reserves Money
Fund, and we look forward to assisting you with your financial needs in the
months and years ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ John Ng
John Ng
Vice President and Portfolio Manager
June 10, 1999
- --------------------------------------------------------------------------------
After more than 20 years of service, Arthur Zeikel recently retired as Chairman
of Merrill Lynch Asset Management, L.P. (MLAM). Mr. Zeikel served as President
of MLAM from 1977 to 1997 and as Chairman since December 1997. Mr. Zeikel is one
of the country's most respected leaders in asset management and presided over
the growth of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500 billion. Mr.
Zeikel will remain on Merrill Lynch Retirement Reserves Money Fund's Board of
Trustees. We are pleased to announce that Terry K. Glenn has been elected
President and Trustee of the Fund. Mr. Glenn has held the position of Executive
Vice President of MLAM since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in wishing him
well in his retirement from Merrill Lynch and are pleased that he will continue
as a member of the Fund's Board of Trustees.
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2
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
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Bank Notes--9.0%
- -----------------------------------------------------------------------------
American Express $ 25,000 4.95+ % 4/25/00 $ 25,000
Centurion Bank 50,000 4.95+ 4/27/00 50,000
75,000 4.95+ 5/05/00 75,000
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Comerica Bank 100,000 4.926+ 11/23/99 99,978
- -----------------------------------------------------------------------------
FCC National Bank 78,000 4.81+ 5/12/99 77,998
22,000 4.90+ 3/23/00 21,990
- -----------------------------------------------------------------------------
First National Bank 62,000 4.93 7/06/99 61,998
of Chicago
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First Tennessee 22,500 4.89+ 6/09/99 22,498
Bank NA
- -----------------------------------------------------------------------------
First Union National 44,000 4.94+ 8/30/99 44,000
Bank 145,000 4.94+ 9/01/99 145,000
50,000 5.02+ 11/16/99 50,010
50,000 5.30 3/01/00 50,059
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Fleet National 150,000 4.80+ 5/11/99 149,997
Bank
- -----------------------------------------------------------------------------
Harris Trust & 50,000 4.91+ 4/06/00 49,982
Savings
- -----------------------------------------------------------------------------
KeyBank NA 31,000 5.01+ 5/05/99 31,000
- -----------------------------------------------------------------------------
LaSalle National 25,000 5.11 4/24/00 24,980
Bank
- -----------------------------------------------------------------------------
National City Bank, 50,000 4.888+ 3/29/00 49,972
Ohio
- -----------------------------------------------------------------------------
NationsBank NA 95,000 4.83+ 8/24/99 94,988
200,000 4.92+ 3/16/00 199,948
- -----------------------------------------------------------------------------
Old Kent Bank 22,300 4.81+ 6/30/99 22,298
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Total Bank Notes (Cost--$1,346,637) ........................... 1,346,696
- -----------------------------------------------------------------------------
Certificates of Deposit--0.8%
- -----------------------------------------------------------------------------
Chase Manhattan 50,000 5.73 5/12/99 49,999
Bank
- -----------------------------------------------------------------------------
Chase Manhattan 75,000 5.18 3/15/00 74,946
Bank USA, NA
- -----------------------------------------------------------------------------
Total Certificates of Deposit (Cost--$124,954) ................ 124,945
- -----------------------------------------------------------------------------
Certificates of Deposit--European--1.0%
- -----------------------------------------------------------------------------
Abbey National 72,000 5.00+ 10/29/99 71,976
Treasury Services 72,000 4.969+ 11/01/99 72,000
PLC, London
- -----------------------------------------------------------------------------
Total Certificates of Deposit--
European (Cost--$144,000) ..................................... 143,976
- -----------------------------------------------------------------------------
Certificates of Deposit--Yankee--11.9%
- -----------------------------------------------------------------------------
Bank Austria AG, NY 50,000 5.12 4/07/00 49,947
- -----------------------------------------------------------------------------
Bank of Montreal, 20,000 5.69 6/15/99 20,014
Chicago 20,000 4.82+ 7/15/99 19,998
50,000 4.88+ 7/22/99 49,993
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Barclays Bank 67,000 4.78+ 6/01/99 66,995
PLC, NY 50,000 4.802+ 6/02/99 49,996
100,000 4.89+ 3/15/00 99,948
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Bayerische 100,000 5.15 3/23/00 99,931
Hypo-und- 50,000 5.15 4/28/00 49,966
Vereinsbank AG, NY
- -----------------------------------------------------------------------------
Canadian Imperial 25,000 5.71 6/21/99 25,020
Bank of Commerce, 25,000 5.27 3/03/00 25,005
NY
- -----------------------------------------------------------------------------
Commerzbank AG, 100,000 5.085 2/17/00 99,884
NY 100,000 5.16 4/07/00 99,930
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Credit Agricole 20,000 5.16 4/03/00 19,985
Indosuez, NY
- -----------------------------------------------------------------------------
Credit Suisse First 44,000 4.94+ 5/12/99 44,000
Boston, NY
- -----------------------------------------------------------------------------
Deutsche Bank 50,000 4.905+ 4/10/00 49,979
AG, NY
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Rabobank Nederland 100,000 5.71 5/21/99 100,031
NV, NY 25,000 5.32 3/03/00 25,015
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Royal Bank of 50,000 4.812+ 8/06/99 49,991
Canada, NY
- -----------------------------------------------------------------------------
Societe Generale, NY 100,000 5.18 2/28/00 99,961
25,000 5.22 2/28/00 24,999
50,000 5.29 3/03/00 50,019
50,000 5.13 4/07/00 49,951
75,000 4.89+ 4/14/00 74,763
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Svenska 50,000 5.195 2/28/00 49,987
Handelsbanken AB,
NY
- -----------------------------------------------------------------------------
Toronto Dominion 50,000 5.74 6/09/99 49,994
Bank, NY 120,000 4.799+ 8/13/99 119,974
30,000 5.15 4/20/00 29,978
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UBS AG, Stamford 25,000 5.20 2/29/00 24,994
75,000 5.25 3/10/00 75,007
- -----------------------------------------------------------------------------
Westdeutsche 75,000 4.88 5/06/99 74,999
Landesbank
Girozentrale, NY
- -----------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$1,770,477) ............................................ 1,770,254
- -----------------------------------------------------------------------------
Commercial Paper--50.2%
- -----------------------------------------------------------------------------
ANZ (Delaware) Inc. 50,000 4.82 7/09/99 49,530
- -----------------------------------------------------------------------------
American Express 90,946 4.78 5/20/99 90,699
Credit Corp.
- -----------------------------------------------------------------------------
Amsterdam Funding 24,982 4.85 6/02/99 24,871
Corp. 17,849 4.85 6/23/99 17,719
24,871 4.86 7/07/99 24,644
20,000 4.82 7/14/99 19,799
- -----------------------------------------------------------------------------
Apreco, Inc. 7,678 4.83 5/14/99 7,663
27,322 4.86 6/15/99 27,152
15,000 4.85 6/17/99 14,903
50,000 4.85 6/22/99 49,641
- -----------------------------------------------------------------------------
3
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
SCHEDULE OF INVESTMENTS (continued) (in thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
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Commercial Paper (continued)
- -----------------------------------------------------------------------------
Asset Securitization $ 50,000 4.85 % 5/24/99 $ 49,838
Cooperative Corp. 100,000 4.85 5/25/99 99,663
120,000 4.85 5/26/99 119,577
- -----------------------------------------------------------------------------
Associates 27,000 4.82 5/13/99 26,952
First Capital BV 50,000 4.82 7/22/99 49,443
15,000 4.83 8/16/99 14,783
- -----------------------------------------------------------------------------
Associates First 50,000 4.84 6/21/99 49,648
Capital Corp. 100,000 4.84 6/22/99 99,283
- -----------------------------------------------------------------------------
Atlantis One 43,978 4.81 5/07/99 43,936
Funding Corp. 23,873 4.81 5/10/99 23,841
23,000 4.82 5/12/99 22,963
74,026 4.82 5/13/99 73,896
38,029 4.83 7/15/99 37,641
10,302 4.85 7/28/99 10,179
37,285 4.83 8/13/99 36,761
11,971 4.85 8/20/99 11,791
15,000 4.82 9/15/99 14,723
18,383 4.82 9/23/99 18,024
54,153 4.82 9/24/99 53,087
- -----------------------------------------------------------------------------
BBL North America 50,000 4.83 7/12/99 49,510
Funding Corp.
- -----------------------------------------------------------------------------
BankAmerica Corp. 100,000 4.81 7/09/99 99,061
- -----------------------------------------------------------------------------
Bank of America, FSB 50,000 4.80 6/08/99 49,738
- -----------------------------------------------------------------------------
Bear Stearns 50,000 4.85 7/07/99 49,544
Companies, Inc.
- -----------------------------------------------------------------------------
CSW Credit Inc. 20,000 4.84 6/02/99 19,911
- -----------------------------------------------------------------------------
CXC Incorporated 100,000 4.82 5/04/99 99,946
15,000 4.87 5/06/99 14,988
50,000 4.80 5/07/99 49,952
50,000 4.85 5/25/99 49,830
25,000 4.83 6/17/99 24,838
- -----------------------------------------------------------------------------
Centric Capital Corp. 30,000 4.86 5/05/99 29,980
20,900 5.02 5/12/99 20,866
30,000 4.87 5/14/99 29,943
10,000 4.83 5/19/99 9,975
26,666 4.84 6/04/99 26,540
12,250 4.85 6/10/99 12,182
7,000 4.85 6/18/99 6,954
5,800 5.00 6/22/99 5,758
4,833 5.00 6/28/99 4,794
9,375 4.84 6/30/99 9,298
11,917 4.84 7/06/99 11,810
18,000 4.86 7/12/99 17,824
7,733 4.86 9/22/99 7,583
16,666 4.85 9/27/99 16,331
41,061 4.85 9/30/99 40,220
10,000 4.82 10/20/99 9,768
10,000 4.81 10/21/99 9,767
- -----------------------------------------------------------------------------
China Merchants 56,000 4.90 6/02/99 55,752
(Cayman) Inc.,
Series B
- -----------------------------------------------------------------------------
Clipper Receivables 50,421 4.85 5/19/99 50,291
Corp. 29,579 4.85 6/18/99 29,383
- -----------------------------------------------------------------------------
Concord Minutemen 71,629 4.85 5/21/99 71,425
Capital Co. LLC 28,000 4.87 6/21/99 27,803
40,000 4.83 9/20/99 39,234
- -----------------------------------------------------------------------------
Corporate Asset 50,000 4.85 5/03/99 49,980
Funding Co. Inc. 13,000 4.85 5/07/99 12,988
43,000 4.84 5/12/99 42,930
38,450 4.85 5/14/99 38,377
75,000 4.85 5/20/99 74,798
22,550 4.84 6/02/99 22,450
50,000 4.85 6/04/99 49,765
58,000 4.84 6/08/99 57,696
75,000 4.85 6/10/99 74,587
50,000 4.84 6/18/99 49,669
- -----------------------------------------------------------------------------
Corporate 75,000 4.82 5/06/99 74,939
Receivables Corp. 10,000 4.86 5/21/99 9,972
50,000 4.85 6/03/99 49,771
15,000 4.85 6/04/99 14,929
75,000 4.84 7/08/99 74,306
- -----------------------------------------------------------------------------
Countrywide Home 25,000 4.88 5/21/99 24,929
Loans, Inc.
- -----------------------------------------------------------------------------
Daimler Chrysler 100,000 4.855 6/24/99 99,256
North America 100,000 4.855 6/25/99 99,242
Holdings Corp. 75,000 4.83 7/20/99 74,185
50,000 4.83 8/11/99 49,310
50,000 4.83 8/12/99 49,304
25,000 4.83 8/16/99 24,639
32,000 4.83 8/23/99 31,507
- -----------------------------------------------------------------------------
Delaware Funding 54,305 4.87 5/07/99 54,254
Corp. 20,973 4.87 5/11/99 20,942
25,859 4.85 6/25/99 25,663
- -----------------------------------------------------------------------------
Den Norske 25,000 4.85 6/23/99 24,817
Bank ASA
- -----------------------------------------------------------------------------
Edison Asset 24,854 4.80 5/03/99 24,844
Securitization, LLC 50,000 4.82 5/07/99 49,953
85,530 4.87 5/27/99 85,217
52,085 4.85 6/09/99 51,805
40,473 4.85 6/11/99 40,244
58,951 4.82 9/09/99 57,909
27,213 4.84 9/13/99 26,717
21,165 4.86 9/29/99 20,734
- -----------------------------------------------------------------------------
Eureka Securitization 50,000 4.82 5/04/99 49,973
Inc. 50,000 4.81 5/13/99 49,912
50,000 4.86 5/21/99 49,858
- -----------------------------------------------------------------------------
Falcon Asset 35,000 4.88 5/14/99 34,934
Securitization Corp. 118,885 4.83 5/17/99 118,614
50,000 4.83 5/19/99 49,873
10,100 4.82 5/26/99 10,065
- -----------------------------------------------------------------------------
Finova Capital Corp. 5,000 4.90 6/17/99 4,968
25,000 4.91 9/29/99 24,491
33,400 4.90 10/07/99 32,684
11,600 4.87 10/25/99 11,324
- -----------------------------------------------------------------------------
Formosa Plastics 25,000 4.86 6/14/99 24,849
Corporation, USA,
Series B
- -----------------------------------------------------------------------------
4
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
SCHEDULE OF INVESTMENTS (continued) (in thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------
Commercial Paper (continued)
- -----------------------------------------------------------------------------
General Electric $200,000 4.80 % 5/11/99 $ 199,702
Capital Corp.
- -----------------------------------------------------------------------------
Grand Funding Corp. 36,350 4.83 5/05/99 36,325
75,000 4.87 5/19/99 74,807
14,282 4.83 5/21/99 14,242
25,972 4.83 6/03/99 25,854
5,168 4.82 7/13/99 5,117
33,482 4.83 7/14/99 33,145
9,746 4.83 7/22/99 9,637
- -----------------------------------------------------------------------------
Greenwich Funding 27,784 4.81 5/03/99 27,773
Corp. 10,165 4.82 7/07/99 10,072
- -----------------------------------------------------------------------------
InterPeru Funding 14,000 4.87 9/24/99 13,724
Limited 10,000 4.84 10/04/99 9,790
- -----------------------------------------------------------------------------
Internationale 26,500 4.82 9/10/99 26,028
Nederlanden (US)
Funding Corp.
- -----------------------------------------------------------------------------
International 25,275 4.84 5/11/99 25,238
Securitization Corp. 70,000 4.86 5/13/99 69,877
36,045 4.82 5/25/99 35,924
10,895 4.85 6/23/99 10,815
41,081 4.82 8/02/99 40,564
51,180 4.82 10/22/99 49,981
- -----------------------------------------------------------------------------
Knight-Ridder, Inc. 25,000 4.83 7/27/99 24,705
- -----------------------------------------------------------------------------
Lehman Brothers 40,000 5.04 6/07/99 39,796
Holdings Inc.
- -----------------------------------------------------------------------------
Lexington Parker 20,494 4.86 5/20/99 20,438
Capital Company, 35,137 4.85 6/03/99 34,976
LLC 36,905 4.83 6/04/99 36,732
47,581 4.83 7/08/99 47,141
53,514 4.87 7/09/99 53,011
36,863 4.82 7/14/99 36,492
19,506 4.82 10/07/99 19,088
- -----------------------------------------------------------------------------
Minmetals Capitals & 50,000 4.82 7/22/99 49,443
Securities Inc.
- -----------------------------------------------------------------------------
Mont Blanc Capital 16,161 4.88 5/13/99 16,133
Corp. 15,730 4.87 5/19/99 15,690
59,000 4.87 5/20/99 58,840
50,000 4.87 5/24/99 49,838
9,109 4.87 6/04/99 9,066
- -----------------------------------------------------------------------------
Monte Rosa Capital 19,985 4.88 5/03/99 19,977
Corporation 32,000 4.89 5/14/99 31,939
38,000 4.87 5/26/99 37,866
60,000 4.87 5/27/99 59,780
- -----------------------------------------------------------------------------
Morgan Stanley, 125,000 4.85 5/19/99 124,678
Dean Witter & Co.
- -----------------------------------------------------------------------------
New Center Asset 50,000 4.85 6/18/99 49,669
Trust 50,000 4.84 6/21/99 49,648
100,000 4.82 7/22/99 98,886
- -----------------------------------------------------------------------------
Newell Rubbermaid 25,000 4.87 5/27/99 24,909
Inc.
- -----------------------------------------------------------------------------
Nordbanken 50,000 4.82 7/16/99 49,483
North America
Inc.
- -----------------------------------------------------------------------------
Old Line Funding 75,000 4.82 6/07/99 74,618
Corp.
- -----------------------------------------------------------------------------
Park Avenue 27,955 4.90 5/03/99 27,944
Receivables Corp. 40,000 4.85 5/05/99 39,973
40,000 4.87 5/10/99 39,946
42,045 4.85 5/14/99 41,966
- -----------------------------------------------------------------------------
Preferred 42,250 4.86 5/04/99 42,227
Receivables 13,505 4.85 6/07/99 13,436
Funding Corp.
- -----------------------------------------------------------------------------
Repeat Offering 24,195 4.84 7/22/99 23,926
Securitization Entity
Funding Inc.
- -----------------------------------------------------------------------------
Republic Industries 18,000 4.88 5/05/99 17,988
Funding Corp. 50,000 4.84 6/16/99 49,684
- -----------------------------------------------------------------------------
Rio Tinto Ltd. 37,500 4.84 5/21/99 37,393
- -----------------------------------------------------------------------------
Riverwoods Funding 50,000 4.82 5/04/99 49,973
Corp. 50,000 4.82 5/05/99 49,966
- -----------------------------------------------------------------------------
Salomon, Smith 109,600 4.86 5/06/99 109,511
Barney Holdings, Inc. 40,400 4.82 7/16/99 39,983
- -----------------------------------------------------------------------------
Sears Roebuck 50,000 4.85 6/07/99 49,745
Acceptance Corp. 50,000 4.85 6/08/99 49,738
- -----------------------------------------------------------------------------
Thames Asset Global 39,241 4.86 6/16/99 38,992
Securitization 47,469 4.87 6/30/99 47,081
13,290 4.84 7/06/99 13,171
- -----------------------------------------------------------------------------
Three Rivers Funding 20,251 4.86 5/25/99 20,182
Corp.
- -----------------------------------------------------------------------------
Tulip Funding Corp. 50,000 4.83 7/14/99 49,497
- -----------------------------------------------------------------------------
Unifunding, Inc. 75,000 4.82 7/21/99 74,175
- -----------------------------------------------------------------------------
Variable Funding 26,000 4.87 5/10/99 25,965
Capital Corp. 22,500 4.83 5/17/99 22,449
17,983 4.83 5/20/99 17,935
64,000 4.85 6/10/99 63,647
25,000 4.83 7/07/99 24,772
25,000 4.83 7/08/99 24,769
- -----------------------------------------------------------------------------
Vattenfall Treasury, 50,000 4.84 6/16/99 49,682
Inc. 25,000 4.82 10/28/99 24,394
- -----------------------------------------------------------------------------
WCP Funding Inc. 25,000 4.87 5/04/99 24,986
50,000 4.85 6/03/99 49,771
- -----------------------------------------------------------------------------
Windmill Funding 20,000 4.81 5/04/99 19,989
Corp. 25,000 4.84 5/10/99 24,966
- -----------------------------------------------------------------------------
Total Commercial Paper
(Cost--$7,478,888) ............................................ 7,478,901
- -----------------------------------------------------------------------------
5
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
SCHEDULE OF INVESTMENTS (continued) (in thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------
Corporate Notes--13.0%
- -----------------------------------------------------------------------------
Abbey National $ 50,000 4.79+ % 7/20/99 $ 49,991
Treasury Services 22,000 4.85+ 7/20/99 21,990
PLC 75,000 4.85+ 8/17/99 74,969
150,000 4.86+ 8/17/99 149,965
- -----------------------------------------------------------------------------
CIT Group Holdings, 50,000 4.80+ 5/24/99 49,998
Inc. (The) 50,000 4.79+ 6/28/99 49,994
100,000 4.89+ 3/27/00 99,946
- -----------------------------------------------------------------------------
Caterpillar Financial 10,000 6.49 10/15/99 10,059
Services Corp.
- -----------------------------------------------------------------------------
Ford Motor Credit 70,000 4.95+ 5/05/00 70,000
Company 150,000 4.95+ 5/23/00 150,000
- -----------------------------------------------------------------------------
General Electric 38,000 4.82+ 6/03/99 37,998
Capital Corp. 20,000 4.898+ 6/03/99 19,999
30,000 5.028+ 9/03/99 30,003
45,000 4.95+ 4/12/00 45,002
31,000 4.945+ 5/03/00 31,000
- -----------------------------------------------------------------------------
General Motors 23,000 5.074+ 6/04/99 23,002
Acceptance Corp. 100,000 4.89+ 7/06/99 99,987
38,000 4.914+ 8/26/99 37,991
25,000 4.94+ 1/20/00 24,985
79,000 4.949+ 2/03/00 78,990
48,500 5.17+ 12/01/00 48,490
33,000 5.034+ 2/27/01 32,996
- -----------------------------------------------------------------------------
Goldman Sachs 27,000 5.08+ 5/12/00 26,995
Group, L.P.
- -----------------------------------------------------------------------------
Household Finance 35,000 4.95+ 9/13/99 34,997
Corp.
- -----------------------------------------------------------------------------
LINCS, Series 1998-2 50,000 4.946+ 3/01/00 50,000
- -----------------------------------------------------------------------------
Liberty Lighthouse 140,000 4.98+ 10/08/99 140,004
US Capital Co. LLC
- -----------------------------------------------------------------------------
National Rural 74,000 4.92+ 9/21/99 73,993
Utilities Cooperative
Finance Corp.
- -----------------------------------------------------------------------------
Pepsico, Inc. 100,000 4.81+ 8/19/99 99,947
- -----------------------------------------------------------------------------
Restructured Asset 69,600 5.031+ 1/21/00 69,600
Securities with
Enhanced Returns,
Series 1998-MM-
7-1-Trust
- -----------------------------------------------------------------------------
Restructured Asset 53,500 4.919+ 8/13/99 53,500
Securities with
Enhanced Returns,
Series 1998-MM-
12-3-Trust
- -----------------------------------------------------------------------------
U.S. Bancorp 49,000 4.798+ 6/22/99 48,995
10,000 4.798+ 7/21/99 9,998
- -----------------------------------------------------------------------------
Wells Fargo & Co. 20,000 4.88+ 4/26/00 19,988
- -----------------------------------------------------------------------------
Xerox Capital 30,000 4.89+ 8/20/99 29,994
(Europe) Plc
- -----------------------------------------------------------------------------
Xerox Credit Corp. 46,000 4.87+ 4/06/00 45,966
- -----------------------------------------------------------------------------
Total Corporate Notes
(Cost--$1,941,384) ............................................ 1,941,332
- -----------------------------------------------------------------------------
Funding Agreements--0.9%
- -----------------------------------------------------------------------------
Hartford Life 50,000 4.969+ 11/30/99 50,000
Insurance Company
- -----------------------------------------------------------------------------
Jackson National 50,000 4.959+ 5/03/99 50,000
Life Insurance Co.
- -----------------------------------------------------------------------------
John Hancock Mutual 22,000 4.979+ 7/30/99 22,000
Life Insurance Co.
- -----------------------------------------------------------------------------
Travelers Insurance 20,000 4.969+ 2/01/00 20,000
Company (The)
- -----------------------------------------------------------------------------
Total Funding Agreements
(Cost--$142,000) .............................................. 142,000
- -----------------------------------------------------------------------------
Master Notes--1.0%
- -----------------------------------------------------------------------------
Goldman Sachs 125,000 4.939+ 10/15/99 125,000
Group, L.P. 25,000 4.939+ 11/18/99 25,000
- -----------------------------------------------------------------------------
Total Master Notes
(Cost--$150,000) .............................................. 150,000
- -----------------------------------------------------------------------------
Time Deposits--0.1%
- -----------------------------------------------------------------------------
Chase Manhattan 19,362 5.00 5/03/99 19,362
Bank NA (Cayman)
- -----------------------------------------------------------------------------
Total Time Deposits
(Cost--$19,362) ............................................... 19,362
- -----------------------------------------------------------------------------
US Government, Agency & Instrumentality Obligations--
Discount--1.8%
- -----------------------------------------------------------------------------
Federal Farm Credit 20,000 4.58 7/09/99 19,816
Banks 25,000 5.10 8/31/99 24,597
- -----------------------------------------------------------------------------
Federal National 15,000 5.26 6/01/99 14,936
Mortgage Association 33,548 5.26 6/04/99 33,392
13,000 4.63 6/15/99 12,921
8,195 5.05 8/20/99 8,075
47,000 5.15 8/20/99 46,310
75,000 5.05 8/24/99 73,859
- -----------------------------------------------------------------------------
US Treasury Bills 32,300 3.82 10/14/99 31,639
- -----------------------------------------------------------------------------
Total US Government, Agency & Instrumentality
Obligations--Discount (Cost--$265,408) ........................ 265,545
- -----------------------------------------------------------------------------
US Government, Agency & Instrumentality Obligations--
Non-Discount--13.4%
- -----------------------------------------------------------------------------
Federal Farm 12,250 6.36 7/26/99 12,289
Credit Banks
- -----------------------------------------------------------------------------
Federal Home 15,000 5.718 5/06/99 15,003
Loan Banks 10,000 6.60 6/21/99 10,026
6
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
SCHEDULE OF INVESTMENTS (concluded) (in thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------
US Government, Agency & Instrumentality Obligations--
Non-Discount (continued)
- -----------------------------------------------------------------------------
Federal Home $ 20,000 6.08 % 6/30/99 $ 20,036
Loan Banks 65,000 4.987+ 9/02/99 64,989
(concluded) 50,000 4.83+ 11/09/99 49,982
81,500 4.83+ 11/12/99 81,474
177,000 4.935 1/19/00 176,805
60,000 4.875 1/21/00 59,922
75,000 4.967+ 4/24/00 74,972
60,000 4.997+ 4/28/00 59,976
6,500 4.905 11/20/00 6,471
13,050 5.33 3/20/01 13,046
- -----------------------------------------------------------------------------
Federal Home 30,000 5.05 11/17/00 29,895
Loan Mortgage 25,000 5.13 11/24/00 24,935
Corporation 52,000 5.18 11/24/00 51,902
17,525 5.25 1/19/01 17,488
40,000 5.15 1/26/01 39,862
20,000 5.18 2/09/01 19,935
20,000 5.53 3/09/01 20,018
- -----------------------------------------------------------------------------
Federal National 50,000 4.98 5/12/99 49,999
Mortgage 60,000 4.585+ 7/14/99 59,979
Association 100,000 4.857+ 7/15/99 99,990
100,000 4.751+ 7/30/99 99,979
50,000 4.922+ 8/19/99 49,989
75,000 5.08 9/24/99 75,030
- -----------------------------------------------------------------------------
Federal National 78,000 4.957+ 10/27/99 77,982
Mortgage 50,620 4.89 10/13/00 50,387
Association 50,000 5.07 12/14/00 49,815
(concluded) 23,500 5.21 1/26/01 23,437
20,000 5.48 5/03/01 20,000
- -----------------------------------------------------------------------------
Student Loan 200,000 4.762+ 12/03/99 199,923
Marketing 50,000 4.857+ 1/12/00 49,993
Association 46,000 4.791+ 2/04/00 45,992
50,000 5.107+ 2/14/00 49,973
50,000 4.75 12/11/00 49,630
7,415 5.46 3/30/01 7,417
- -----------------------------------------------------------------------------
US Treasury Notes 25,000 7.125 9/30/99 25,105
25,000 4.625 11/30/00 23,881
30,000 4.625 12/31/00 29,841
10,000 5.00 4/30/01 10,009
- -----------------------------------------------------------------------------
Total US Government, Agency & Instrumentality
Obligations--Non-Discount
(Cost--$2,000,367) ............................................ 1,997,377
- -----------------------------------------------------------------------------
Total Investments (Cost--$15,383,477)--103.1% ................. 15,380,388
Liabilities in Excess of Other Assets--(3.1%) ................. (469,133)
-----------
Net Assets--100.0% ............................................ $14,911,255
===========
- -----------------------------------------------------------------------------
* Commercial Paper and certain US Government, Agency & Instrumentality
Obligations are traded on a discount basis, the interest rates shown
reflect the discount rates paid at the time of purchase by the Fund. Other
securities bear interest at the rates shown, payable at fixed dates or
upon maturity. Interest rates on variable rate securities are adjusted
periodically based upon appropriate indexes; the interest rates shown are
the rates in effect at April 30, 1999.
+ Floating Rate Notes.
See Notes to Financial Statements.
7
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
FINANCIAL INFORMATION
Statement of Assets and Liabilities as of April 30, 1999
<TABLE>
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$15,383,476,590*) (Note 1a) $15,380,388,114
Cash..................................................................... 1,220,430
Receivables:
Interest............................................................... $ 61,592,121
Beneficial interest sold............................................... 597,869 62,189,990
-------------
Prepaid registration fees and other assets (Note 1e)..................... 587,755
---------------
Total assets............................................................. 15,444,386,289
---------------
- --------------------------------------------------------------------------------------------------------------------------------
Liabilities: Payables:
Securities purchased................................................... 286,000,951
Beneficial interest redeemed........................................... 237,444,535
Investment adviser (Note 2)............................................ 4,278,991
Distributor (Note 2)................................................... 153,655 527,878,132
-------------
Accrued expenses and other liabilities................................... 5,252,837
---------------
Total liabilities........................................................ 533,130,969
---------------
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets: Net assets............................................................... $14,911,255,320
===============
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets Class I shares of beneficial interest, $0.10 par value, unlimited number
Consist of: of shares authorized..................................................... $ 1,393,825,930
Class II shares of beneficial interest, $0.10 par value, unlimited number
of shares authorized..................................................... 97,608,450
Paid-in capital in excess of par......................................... 13,422,909,416
Unrealized depreciation on investments--net.............................. (3,088,476)
---------------
Net assets............................................................... $14,911,255,320
===============
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets Class I--Based on net assets of $13,935,359,113 and 13,938,259,299
Value: shares outstanding....................................................... $ 1.00
===============
Class II--Based on net assets of $975,896,207 and 976,084,496
shares outstanding....................................................... $ 1.00
===============
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Cost for Federal income tax purposes. As of April 30, 1999, net
unrealized depreciation for Federal income tax purposes amounted to
$3,088,476, of which $788,530 related to appreciated securities and
$3,877,006 related to depreciated securities.
See Notes to Financial Statements.
8
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
FINANCIAL INFORMATION (continued)
Statement of Operations
<TABLE>
<CAPTION>
For the Six Months Ended
April 30, 1999
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income Interest and amortization of premium and discount earned............... $ 373,818,056
(Note 1d):
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses: Investment advisory fees (Note 2)...................................... $ 25,191,334
Transfer agent fees--Class I (Note 2).................................. 7,908,940
Registration fees (Note 1e)............................................ 1,221,274
Distribution fees--Class II (Note 2)................................... 534,845
Printing and shareholder reports....................................... 334,048
Accounting services (Note 2)........................................... 332,436
Transfer agent fees--Class II (Note 2)................................. 309,440
Custodian fees......................................................... 277,324
Professional fees...................................................... 80,417
Interest expense....................................................... 72,429
Trustees' fees and expenses............................................ 36,301
Other.................................................................. 69,207
--------------
Total expenses......................................................... 36,367,995
--------------
Investment income--net................................................. 337,450,061
--------------
- ---------------------------------------------------------------------------------------------------------------------------------
Realized & Realized loss on investments--net...................................... (29,872)
Unrealized Loss Change in unrealized appreciation/depreciation on investments--net..... (7,476,968)
On Investments-- --------------
Net (Note 1d): Net Increase in Net Assets Resulting from Operations................... $ 329,943,221
==============
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
FINANCIAL INFORMATION (continued)
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1999 Oct. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations: Investment income--net.................................................. $ 337,450,061 $ 615,417,170
Realized gain (loss) on investments--net................................ (29,872) 1,292,223
Change in unrealized appreciation/depreciation on investments--net ..... (7,476,968) 3,920,495
---------------- ----------------
Net increase in net assets resulting from operations.................... 329,943,221 620,629,888
---------------- ----------------
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends & Investment income--net:
Distributions to Class I............................................................... (325,488,506) (615,358,911)
Shareholders Class II*............................................................. (11,931,683) (58,259)
(Note 1f): Realized gain on investments--net:
Class I............................................................... -- (1,292,074)
Class II*............................................................. -- (149)
---------------- ----------------
Net decrease in net assets resulting from dividends and
distributions to shareholders........................................... (337,420,189) (616,709,393)
---------------- ----------------
- -----------------------------------------------------------------------------------------------------------------------------------
Beneficial Interest Net increase in net assets derived from beneficial interest
Transactions transactions ........................................................... 944,626,025 3,279,840,626
(Note 3): ---------------- ----------------
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets: Total increase in net assets............................................ 937,149,057 3,283,761,121
Beginning of period..................................................... 13,974,106,263 10,690,345,142
---------------- ----------------
End of period........................................................... $ 14,911,255,320 $ 13,974,106,263
================ ================
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Class II Shares commenced operations on October 5, 1998.
See Notes to Financial Statements.
10
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
FINANCIAL INFORMATION (continued)
Financial Highlights
<TABLE>
<CAPTION>
The following per share data and ratios have been Class I
derived from information provided in the For the Six --------------------------------------------------------
financial statements. Months Ended For the Year Ended October 31,
April 30, --------------------------------------------------------
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning
Operating of period ........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Performance: ----------- ----------- ----------- ----------- -----------
Investment income--net .............. .0236 .0517 .0512 .0509 .0540
Realized and unrealized gain
(loss) on investments--net .......... (.0005) .0004 .0001 (.0002) .0015
----------- ----------- ----------- ----------- -----------
Total from investment operations .... .0231 .0521 .0513 .0507 .0555
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net ............ (.0236) (.0517) (.0512) (.0509) (.0540)
Realized gain on investments--net . -- (.0001) (.0001) (.0001) (.0002)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions ... (.0236) (.0518) (.0513) (.0510) (.0542)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total investment return ............. 4.76%* 5.31% 5.35% 5.19% 5.55%
=========== =========== =========== =========== ===========
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Expenses ............................ .50%* .55% .54% .56% .59%
Net Assets: =========== =========== =========== =========== ===========
Investment income and realized
gain on investments--net ............ 4.73%* 5.19% 5.13% 5.07% 5.43%
=========== =========== =========== =========== ===========
- ----------------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, end of period
Data: (in thousands) ...................... $13,935,359 $13,917,721 $10,690,345 $ 9,340,229 $ 8,648,907
=========== =========== =========== =========== ===========
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
See Notes to Financial Statements.
11
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
FINANCIAL INFORMATION (concluded)
Financial Highlights (concluded)
<TABLE>
<CAPTION>
Class II
----------------------------
For the For the
The following per share data and ratios have been derived Six Months Period
from information provided in the financial statements. Ended Oct. 5, 1998+
April 30, to Oct. 31,
Increase (Decrease) in Net Asset Value: 1999 1998
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Net asset value, beginning of period ....................... $ 1.00 $ 1.00
Operating --------- ---------
Performance: Investment income--net ..................................... .0226 .0037
Realized and unrealized gain (loss) on investments--net .... (.0003) .0010
--------- ---------
Total from investment operations ........................... .0223 .0047
--------- ---------
Less dividends and distributions:
Investment income--net ................................... (.0226) (.0037)
Realized gain on investments--net ........................ -- --++
--------- ---------
Total dividends and distributions .......................... (.0226) (.0037)
--------- ---------
Net asset value, end of period ............................. $ 1.00 $ 1.00
========= =========
Total investment return .................................... 4.55%* 5.16%*
========= =========
- -------------------------------------------------------------------------------------------------------------
Ratios to Average Expenses ................................................... .70%* .72%*
========= =========
Net Assets: Investment income and realized gain on investments--net .... 4.46%* 4.69%*
========= =========
- -------------------------------------------------------------------------------------------------------------
Supplemental Net assets, end of period (in thousands) ................... $ 975,896 $ 56,385
Data: ========= =========
- -------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
+ Commencement of operations.
++ Amount is less than $.0001 per share.
See Notes to Financial Statements.
12
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Retirement Reserves Money Fund (the "Fund") is a separate Fund
offering a separate class of shares of Merrill Lynch Retirement Series Trust
(the "Trust"). The Trust is registered under the Investment Company Act of 1940
as a diversified, open-end management investment company which will comprise a
series of separate portfolios offering a separate class of shares to
participants in the retirement plans for which Merrill Lynch, Pierce, Fenner &
Smith Incorporated ("MLPF&S") acts as passive custodian. The Fund's financial
statements are prepared in accordance with generally accepted accounting
principles which may require the use of management accruals and estimates. These
unaudited financial statements reflect all adjustments which are, in the opinion
of management, necessary to a fair statement of the results for the interim
period presented. All such adjustments are of a normal recurring nature. The
Fund offers two classes of shares. Class I and Class II have equal voting,
dividend, liquidation and other rights, except that only shares of the
respective classes are entitled to vote on matters concerning only that class
and Class II Shares bear certain expenses related to the distribution of such
shares. At the present time, the Fund is the only series offered. The following
is a summary of significant accounting policies consistently followed by the
Fund.
(a) Valuation of investments--Portfolio securities with remaining maturities of
greater than sixty days are valued at the most recent bid price or yield
equivalent as obtained from dealers that make markets in such securities. As
securities transition from sixty-one to sixty days 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. Securities
maturing sixty days or less from their date of acquisition are valued at
amortized cost, which approximates market value. For the purposes of valuation,
the maturity of variable rate securities is deemed to be the next coupon date on
which the interest rate is to be adjusted. Other investments for which market
quotations are not readily available are valued at their fair value as
determined in good faith by or under the direction of the Fund's Board of
Trustees.
(b) Repurchase agreements--The Fund invests in US Government and Agency
securities pursuant to repurchase agreements. Under such agreements, the
counterparty agrees to repurchase the security at a mutually agreed upon time
and price. The Fund takes possession of the underlying securities, marks to
market such securities and, if necessary, receives additional securities daily
to ensure that the contract is fully collateralized.
(c) 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.
(d) 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.
(e) Prepaid registration fees--Prepaid registration fees are charged to expense
as the related shares are issued.
(f) Dividends and distributions to shareholders--The Fund declares dividends
daily and reinvests daily such dividends in additional fund shares at net asset
value. Dividends and distributions are declared from the total of net investment
income and net realized gains or losses on investments.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Merrill Lynch
Asset Management, L.P. ("MLAM"). The general partner of MLAM is Princeton
Services, Inc. ("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch &
Co., Inc. ("ML & Co."), which is the limited partner. The Fund has entered into
a Distribution Agreement and Distribution Plans with Merrill Lynch Funds Distri
butor ("MLFD" or the "Distributor"), a division of Princeton Funds Distributor,
Inc. ("PFD"), which is a wholly-owned subsidiary of Merrill Lynch Group, Inc.
13
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
MLAM 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 $1
billion; 0.45% of average daily net assets in excess of $1 billion but not
exceeding $2 billion; 0.40% of average daily net assets in excess of $2 billion
but not exceeding $3 billion; 0.375% of average daily net assets in excess of $3
billion but not exceeding $4 billion; 0.35% of average daily net assets in
excess of $4 billion but not exceeding $7 billion; 0.325% of average daily net
assets in excess of $7 billion but not exceeding $10 billion; 0.30% of average
daily net assets in excess of $10 billion; and 0.29% of average daily net assets
in excess of $15 billion.
Pursuant to the Distribution Plan adopted by the Fund in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Fund pays the Distributor an
ongoing distribution fee accrued daily and paid monthly at the annual rate of
0.20% of the Fund's average daily net assets attributable to Class II Shares.
This fee is used to help defray the expenses associated with marketing
activities and services related to Class II Shares.
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 MLAM at cost.
Certain officers and/or trustees of the Trust are officers and/or directors of
MLAM, PFD, FDS, PSI, and/or ML & Co.
3. Shares of Beneficial Interest:
Net increase in net assets derived from beneficial interest transactions was
$944,626,025 and $3,279,840,626 for the six months ended April 30, 1999 and the
year ended October 31, 1998, respectively.
Transactions in shares of beneficial interest for each class were as follows:
- --------------------------------------------------------------------------------
Class I Shares for the Six Dollar
Months Ended April 30, 1999 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 22,808,610,792 $ 22,808,610,792
Shares issued to
shareholders in
reinvestment of dividends ............ 325,514,025 325,514,025
---------------- ----------------
Total issued ......................... 23,134,124,817 23,134,124,817
Shares redeemed ...................... (23,109,183,444) (23,109,183,444)
---------------- ----------------
Net increase ......................... 24,941,373 $ 24,941,373
================ ================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class I Shares for the Year Dollar
Ended October 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 42,739,661,096 $ 42,739,661,096
Shares issued to
shareholders in
reinvestment of dividends
and distributions .................... 616,611,073 616,611,073
---------------- ----------------
Total issued ......................... 43,356,272,169 43,356,272,169
Shares redeemed ...................... (40,132,831,388) (40,132,831,388)
---------------- ----------------
Net increase ......................... 3,223,440,781 $ 3,223,440,781
================ ================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class II Shares for the Six Dollar
Months Ended April 30, 1999 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 3,526,965,029 $ 3,526,965,029
Shares issued to
shareholders in
reinvestment of dividends ............ 11,929,008 11,929,008
---------------- ----------------
Total issued ......................... 3,538,894,037 3,538,894,037
Shares redeemed ...................... (2,619,209,385) (2,619,209,385)
---------------- ----------------
Net increase ......................... 919,684,652 $ 919,684,652
================ ================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class II Shares for the Period
October 5, 1998+ to Dollar
October 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 85,369,645 $ 85,369,645
Shares issued to
shareholders in
reinvestment of dividends
and distributions .................... 58,435 58,435
---------------- ----------------
Total issued ......................... 85,428,080 85,428,080
Shares redeemed ...................... (29,028,235) (29,028,235)
---------------- ----------------
Net increase ......................... 56,399,845 $ 56,399,845
================ ================
- --------------------------------------------------------------------------------
+Prior to October 5, 1998 (commencement of operations), the Fund issued 10,000
shares to MLAM for $10,000.
14
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 1999
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
Joe Grills, Trustee
Walter Mintz, Trustee
Robert S. Salomon Jr., Trustee
Melvin R. Seiden, Trustee
Stephen B. Swensrud, Trustee
Arthur Zeikel, Trustee
Kevin J. McKenna, Senior Vice President
Joseph T. Monagle Jr., Senior Vice President
John Ng, Vice President
Donald C. Burke, Vice President and Treasurer
Barbara G. Fraser, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210
- --------------------------------------------------------------------------------
Gerald M. Richard, Treasurer of Merrill Lynch Retirement Reserves Money Fund has
recently retired. His colleagues at Merrill Lynch Asset Management, L.P. join
the Fund's Board of Trustees in wishing Mr. Richard well in his retirement.
- --------------------------------------------------------------------------------
15
<PAGE>
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. 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. Statements and other information herein are as
dated and are subject to change.
Merrill Lynch
Retirement Reserves
Money Fund
Box 9011
Princeton, New Jersey
08543-9011 #10262--4/99
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