MERRILL LYNCH
RETIREMENT
RESERVES
MONEY FUND
Merrill Lynch
Retirement Series Trust
[GRAPHIC OMITTED]
STRATEGIC
Performance
Semi-Annual Report
April 30, 2000
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
DEAR SHAREHOLDER
For the six months ended April 30, 2000, Merrill Lynch Retirement Reserves Money
Fund's Class I and Class II Shares had net annualized yields of 5.56%* and
5.36%*, respectively. The Fund's Class I and Class II Shares had 7-day yields as
of April 30, 2000 of 5.73% and 5.53%, respectively.
The average portfolio maturity for Merrill Lynch Retirement Reserves Money Fund
at April 30, 2000 was 45 days, compared to 72 days at October 31, 1999.
The Environment
The US economy continued to enjoy above-trend growth during the last half of
1999 and into 2000. Gross domestic product (GDP) for the last half of 1999 grew
at a rate of 7.3%, well above expectations this far into the current economic
cycle, and much higher than the target for GDP set by the Federal Reserve Board.
Currently, more Americans have jobs and are enjoying increases in their income
as seen in the lowest unemployment rate (3.9%) in 30 years as well as the large
number of new jobs that have been created (304,750 average for the first four
months of 2000). This, as well as the relentless rise in equity prices, has
created a momentum in consumer demand that has yet to be dampened by rising
interest rates.
The recovery of overseas economies has boosted export levels that suffered
during the first half of 1999, contributing to the strong US GDP. The Federal
Reserve Board remains concerned that although productivity gains are high, they
cannot keep pace with demand and that imbalances are developing in the economy
that may soon prove to be inflationary. A more visible sign of price pressure is
the cost of oil, which recently exceeded $30 per barrel. We expect oil price
pressures to continue during the spring and summer since oil inventories are
low. However, the Organization of Petroleum Exporting Countries' agreement to
increase production should alleviate some of the oil price pressure.
The Federal Reserve Board took extraordinary steps to ensure liquidity in the
financial markets because of Year 2000 concerns. Monetary policy was tightened
just once during the last quarter of 1999, but the Federal Reserve Board adopted
a neutral bias through the year-end in an effort to reassure investors and
eliminate uncertainty. However, growth remained strong and two additional 25
basis point (0.25%) interest rate increases were implemented in February and
March. At that time, the Treasury announced anticipated changes to the auction
schedule. The Federal budget surplus has made it necessary to decrease the
amount of securities sold by the Treasury; therefore, the changes will include
reduced auctions and auction sizes as well as a buy-back program (the Treasury
intends to buy back old, off-the-run less liquid issues in order to keep current
issues liquid). The announcement caused unexpected results as the yield curve
inverted dramatically as investors rushed to buy the longer issues. At this
time, it is unclear to us when this technical inversion will be unwound, as it
seems likely that further short-term interest rate increases will be forthcoming
as long as the current economic momentum continues. Although Treasury yields
moved sharply lower, other fixed-income asset classes did not participate to the
fullest extent. The Government guarantee allotted the US agency issues had been
placed under scrutiny, which has pressured quality spreads across the yield
curve.
Portfolio Strategy
During the six months ended April 30, 2000, we generally maintained a
conservative approach to the market, at first dictated by liquidity concerns
over year-end, and more recently by evidence that the Federal Reserve Board is
committed to a series of incremental rate increases, as witnessed in the 50
basis point increase on May 16, 2000. In response to changes in the yield curve,
we have recently adopted a more pronounced barbell approach, placing greater
emphasis on the very front end of the yield curve with repurchase agreements and
*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, 2000
one-month securities and selectively adding one-year money market issues. This
strategy allows a greater portion of the Fund's assets to take advantage of
rising interest rates, while the Fund's longer-term investments provide yield
enhancement and potential price appreciation.
The Fund's portfolio composition at the end of the April period and as of our
last report to shareholders is detailed below:
--------------------------------------------------------------------------------
4/30/00 10/31/99
--------------------------------------------------------------------------------
Bank Notes ............................................. 5.9% 7.6%
Certificates of Deposit ................................ 3.1 2.2
Certificates of Deposit -- European .................... 7.1 1.3
Certificates of Deposit -- Yankee ...................... 8.7 10.6
Commercial Paper ....................................... 48.1 46.7
Corporate Notes ........................................ 16.2 13.6
Funding Agreements ..................................... 1.8 1.1
Master Notes ........................................... -- 0.2
Promissory Notes ....................................... -- 0.8
Repurchase Agreements .................................. -- 1.6
US Government, Agency &
Instrumentality
Obligations -- Discount ............................. -- 1.0
US Government, Agency &
Instrumentality Obligations --
Non-Discount ........................................ 10.6 13.8
Liabilities in Excess of Other Assets .................. (1.5) (0.5)
----- -----
Total .................................................. 100.0% 100.0%
===== =====
--------------------------------------------------------------------------------
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 12, 2000
2
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
<TABLE>
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
---------------------------------------------------------------------------------------------------------------
Bank Notes -- 5.9%
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Express $ 75,000 6.20+% 5/05/00 $ 75,000
Centurion Bank
---------------------------------------------------------------------------------------------------------------
Banc One, IL, N.A. 50,000 6.087 10/06/00 49,803
---------------------------------------------------------------------------------------------------------------
Bank of 250,000 6.05 6/09/00 249,820
America N.A. 50,000 6.09 6/22/00 49,982
---------------------------------------------------------------------------------------------------------------
Comerica Bank 50,000 5.849+ 2/02/01 49,981
50,000 6.045+ 2/14/01 49,976
---------------------------------------------------------------------------------------------------------------
First USA Bank, N.A. 25,000 6.08 10/10/00 24,884
---------------------------------------------------------------------------------------------------------------
First Union 75,000 6.16+ 8/31/00 75,019
National Bank
---------------------------------------------------------------------------------------------------------------
Fleet National Bank 100,000 6.026+ 7/31/00 100,001
---------------------------------------------------------------------------------------------------------------
Morgan Guaranty 37,500 6.15+ 5/10/00 37,499
Trust Company of
New York
---------------------------------------------------------------------------------------------------------------
National City 25,000 6.67 3/13/01 24,832
Bank -- PA
---------------------------------------------------------------------------------------------------------------
U.S. Bank National 30,000 5.61 6/26/00 29,956
Association 45,000 6.88 4/04/01 44,861
---------------------------------------------------------------------------------------------------------------
Total Bank Notes (Cost -- $862,409) .............................................................. 861,614
---------------------------------------------------------------------------------------------------------------
Certificates of Deposit -- 3.1%
---------------------------------------------------------------------------------------------------------------
First Tennessee 75,000 6.09 6/08/00 74,995
Bank, N.A.
---------------------------------------------------------------------------------------------------------------
First Union 50,000 5.80 7/03/00 49,911
National Bank 61,000 6.25+ 7/19/00 61,000
44,000 6.16+ 8/29/00 43,817
---------------------------------------------------------------------------------------------------------------
Old Kent Bank 75,000 6.15+ 4/30/01 74,985
---------------------------------------------------------------------------------------------------------------
SouthTrust Bank, N.A. 50,000 6.30 9/01/00 49,935
---------------------------------------------------------------------------------------------------------------
World Savings 50,000 5.99 5/08/00 50,000
Bank, fsb 50,000 5.99 5/09/00 50,000
---------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit
(Cost -- $454,987) ............................................................................... 454,643
---------------------------------------------------------------------------------------------------------------
Certificates of Deposit -- European -- 7.1%
---------------------------------------------------------------------------------------------------------------
Bank Brussels 50,000 6.01 5/10/00 50,000
Lambert, London 50,000 6.025 5/25/00 49,996
50,000 6.16 6/13/00 50,001
---------------------------------------------------------------------------------------------------------------
Barclays Bank PLC, 200,000 6.10 5/25/00 200,000
London 50,000 6.20 6/26/00 50,001
---------------------------------------------------------------------------------------------------------------
Cassa di Risparmio 25,000 6.07 6/09/00 24,994
delle Provincie 50,000 6.18 6/19/00 50,001
Lombarde SpA, 25,000 6.18 6/20/00 25,000
London
---------------------------------------------------------------------------------------------------------------
Credit Agricole 50,000 6.055 6/15/00 49,992
Indosuez, London
---------------------------------------------------------------------------------------------------------------
Deutsche Bank 75,000 6.09 6/13/00 74,982
AG, London 50,000 6.10 6/28/00 49,975
---------------------------------------------------------------------------------------------------------------
Dresdner Bank AG, 24,000 6.07 6/12/00 23,996
London
---------------------------------------------------------------------------------------------------------------
Halifax PLC, London 50,000 6.08 6/12/00 49,982
---------------------------------------------------------------------------------------------------------------
ING Bank N.V., 100,000 6.04 5/04/00 100,002
London 25,000 6.06 6/08/00 24,994
---------------------------------------------------------------------------------------------------------------
Norddeutsche 50,000 6.11 6/22/00 49,984
Landesbank 15,000 6.90 4/30/01 14,996
Girozentrale, London
---------------------------------------------------------------------------------------------------------------
Svenska 50,000 6.07 6/09/00 49,988
Handelsbanken AB,
London
---------------------------------------------------------------------------------------------------------------
Westdeutsche 50,000 7.00 5/02/01 50,000
Landesbank
Girozentrale, London
---------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost -- $1,039,000) ............................................................................. 1,038,884
---------------------------------------------------------------------------------------------------------------
Certificates of Deposit -- Yankee -- 8.7%
---------------------------------------------------------------------------------------------------------------
Australia & New 25,000 6.84 3/28/01 24,943
Zealand Banking
Group, NY
---------------------------------------------------------------------------------------------------------------
Bank Austria AG, NY 25,000 5.20 5/08/00 24,993
---------------------------------------------------------------------------------------------------------------
Bank of Scotland, NY 25,000 5.70 6/28/00 24,956
---------------------------------------------------------------------------------------------------------------
Barclays Bank 50,000 6.14+ 5/12/00 49,999
PLC, NY
---------------------------------------------------------------------------------------------------------------
Bayerische Hypo-und 25,000 6.68 3/08/01 24,914
Vereinsbank AG, NY
---------------------------------------------------------------------------------------------------------------
Bayerische 150,000 6.095+ 11/09/00 149,944
Landesbank
Girozentrale, NY
---------------------------------------------------------------------------------------------------------------
Canadian Imperial 50,000 6.17 6/21/00 49,998
Bank of Commerce, NY
---------------------------------------------------------------------------------------------------------------
Commerzbank AG, NY 75,000 6.10+ 4/26/01 74,978
---------------------------------------------------------------------------------------------------------------
Credit Agricole 150,000 6.12+ 11/08/00 149,952
Indosuez, NY 30,000 6.101+ 11/29/00 29,988
20,000 6.82 4/27/01 19,947
---------------------------------------------------------------------------------------------------------------
Credit Communal 50,000 5.96 10/02/00 49,794
de Belgique, NY
---------------------------------------------------------------------------------------------------------------
Credit Suisse First 50,000 6.22+ 6/07/00 49,997
Boston, NY 50,000 6.22+ 6/12/00 49,997
---------------------------------------------------------------------------------------------------------------
Deutsche Bank AG, 25,000 6.00 11/13/00 24,872
NY 25,000 6.75 3/20/01 24,925
25,000 6.80 4/17/01 24,931
---------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
----------------------------------------------------------------------------------------------------------
Certificates of Deposit -- Yankee (concluded)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Norddeutsche $ 25,000 5.20% 5/08/00 $ 24,993
Landesbank
Girozentrale, NY
----------------------------------------------------------------------------------------------------------
Royal Bank of 25,000 6.525 1/16/01 24,905
Canada, NY
----------------------------------------------------------------------------------------------------------
Svenska 25,000 6.65 3/06/01 24,909
Handelsbanken
AB, NY
----------------------------------------------------------------------------------------------------------
UBS AG, NY 25,000 5.29 5/18/00 24,985
125,000 5.97 11/17/00 124,324
25,000 6.85 3/28/01 24,945
----------------------------------------------------------------------------------------------------------
Unibank A/S, NY 25,000 6.81 4/11/01 24,934
25,000 6.80 4/17/01 24,930
----------------------------------------------------------------------------------------------------------
Westpac Banking 25,000 6.10+ 11/10/00 24,993
Corp., NY 75,000 6.10+ 11/13/00 74,980
25,000 6.79 4/12/01 24,930
----------------------------------------------------------------------------------------------------------
Total Certificates of Deposit -- Yankee
(Cost -- $1,274,642) ....................................................................... 1,272,956
----------------------------------------------------------------------------------------------------------
Commercial Paper -- 48.1%
----------------------------------------------------------------------------------------------------------
AT&T Corp. 125,000 6.24+ 7/13/00 124,971
75,000 6.183+ 8/07/00 75,000
----------------------------------------------------------------------------------------------------------
Alpine Securitization 61,628 5.92 5/25/00 61,349
Corporation 100,000 5.96 6/01/00 99,429
25,119 6.09 6/19/00 24,899
----------------------------------------------------------------------------------------------------------
Amsterdam Funding 26,256 6.08 5/02/00 26,238
Corp 25,000 5.92 5/03/00 24,980
24,000 5.92 5/08/00 23,961
11,044 5.97 6/01/00 10,981
25,000 6.08 6/07/00 24,831
25,000 6.08 6/12/00 24,810
----------------------------------------------------------------------------------------------------------
Apreco, Inc. 41,100 6.08 5/01/00 41,079
10,000 5.92 5/15/00 9,972
25,000 6.06 5/22/00 24,899
----------------------------------------------------------------------------------------------------------
Associates First 75,000 6.05 5/31/00 74,584
Capital Corp.
----------------------------------------------------------------------------------------------------------
Atlantis One 150,000 5.87 5/01/00 149,928
Funding Corp. 66,036 5.89 5/01/00 66,004
86,913 6.05 5/19/00 86,606
73,691 6.06 5/19/00 73,431
32,848 6.07 5/22/00 32,715
----------------------------------------------------------------------------------------------------------
Banco Bozano, 35,000 6.10 6/19/00 34,682
Simonsen S.A., Grand
Cayman Branch
----------------------------------------------------------------------------------------------------------
Bank of America 50,000 5.95 6/05/00 49,680
Corporation 50,000 5.95 6/06/00 49,673
50,000 5.95 6/07/00 49,664
----------------------------------------------------------------------------------------------------------
Bear Stearns 86,000 5.88 5/09/00 85,845
Companies, Inc.
----------------------------------------------------------------------------------------------------------
Bills Securitization 50,000 5.92 5/11/00 49,894
Limited 60,000 5.97 6/06/00 59,607
15,000 5.97 6/08/00 14,897
50,000 6.00 6/08/00 49,656
----------------------------------------------------------------------------------------------------------
British Aerospace 50,000 5.91 5/11/00 49,894
N.A
----------------------------------------------------------------------------------------------------------
British 50,000 5.92 5/02/00 49,968
Telecommunications 100,000 5.97 6/23/00 99,057
PLC
----------------------------------------------------------------------------------------------------------
CBA (Delaware) 50,000 5.91 5/03/00 49,959
Finance Inc. 25,000 6.08 9/08/00 24,413
----------------------------------------------------------------------------------------------------------
CXC Incorporated 50,000 6.05 5/05/00 49,941
75,000 6.08 6/19/00 74,345
----------------------------------------------------------------------------------------------------------
Credit Suisse First 20,000 5.91 5/05/00 19,977
Boston Inc. 25,000 5.95 6/07/00 24,832
5,000 5.95 6/14/00 4,961
----------------------------------------------------------------------------------------------------------
Cemex, S.A. de C.V. 40,000 6.15 5/09/00 39,925
----------------------------------------------------------------------------------------------------------
Centric Capital Corp. 9,450 5.92 5/04/00 9,441
25,000 6.07 6/12/00 24,810
20,163 6.08 6/12/00 20,010
20,000 6.10 6/16/00 19,834
25,000 6.28 9/07/00 24,418
----------------------------------------------------------------------------------------------------------
China Merchants 25,000 5.97 6/16/00 24,796
(Cayman), Inc.,
Series A
----------------------------------------------------------------------------------------------------------
China Merchants 50,000 5.95 5/24/00 49,782
(Cayman 3), Inc.
----------------------------------------------------------------------------------------------------------
Ciesco L.P. 22,763 6.08 5/01/00 22,751
32,600 6.08 5/01/00 32,583
----------------------------------------------------------------------------------------------------------
Clipper Receivables 50,000 5.91 5/15/00 49,860
Corp. 50,000 5.98 6/06/00 49,673
----------------------------------------------------------------------------------------------------------
Corporate Asset 33,965 6.03 5/02/00 33,942
Funding Co., Inc. 50,000 6.05 5/03/00 49,958
50,000 6.05 5/09/00 49,908
150,000 6.05 5/10/00 149,698
100,000 6.05 5/19/00 99,647
41,035 6.04 5/22/00 40,870
75,000 6.06 5/26/00 74,647
----------------------------------------------------------------------------------------------------------
Corporate 95,000 6.08 6/06/00 94,374
Receivables Corp.
----------------------------------------------------------------------------------------------------------
Countrywide Home 13,200 6.06 5/22/00 13,147
Loans, Inc.
----------------------------------------------------------------------------------------------------------
Credit Suisse 25,000 5.97 6/22/00 24,768
First Boston
International
(Guernsey) Limited
----------------------------------------------------------------------------------------------------------
DaimlerChrysler 50,000 5.92 5/09/00 49,910
North America 100,000 5.92 5/10/00 99,804
Holdings Corp. 50,000 5.75 5/15/00 49,860
75,000 5.96 6/05/00 74,520
75,000 5.95 6/14/00 74,413
25,000 5.95 6/15/00 24,800
93,000 5.98 6/21/00 92,155
----------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Delaware Funding $ 92,165 6.08% 6/14/00 $ 91,433
Corp.
--------------------------------------------------------------------------------------------
Den Norske Bank 25,000 5.88 5/24/00 24,891
ASA
--------------------------------------------------------------------------------------------
Edison Asset 75,000 6.05 5/03/00 74,937
Securitization, LLC 50,000 6.03 5/11/00 49,891
37,483 5.76 5/16/00 37,371
19,962 6.07 5/18/00 19,895
--------------------------------------------------------------------------------------------
Enterprise Funding 59,852 6.08 6/15/00 59,359
Corp. 59,592 6.08 6/20/00 59,060
--------------------------------------------------------------------------------------------
Eureka 29,794 6.05 5/02/00 29,774
Securitization Inc. 50,000 6.06 5/09/00 49,907
50,000 6.08 6/20/00 49,554
--------------------------------------------------------------------------------------------
Finova Capital Corp. 10,000 5.95 5/08/00 9,984
32,000 6.00 6/05/00 31,795
13,000 6.00 6/13/00 12,900
20,000 6.02 6/26/00 19,801
--------------------------------------------------------------------------------------------
Formosa Plastics 35,000 6.08 6/07/00 34,763
Corporation, USA,
Series B
--------------------------------------------------------------------------------------------
Fortis Funding LLC 25,000 5.74 5/12/00 24,943
--------------------------------------------------------------------------------------------
France Telecom 44,468 6.08 5/02/00 44,438
25,000 5.93 5/04/00 24,976
50,000 5.96 6/06/00 49,673
25,000 5.96 6/08/00 24,828
--------------------------------------------------------------------------------------------
GE Capital 100,000 6.06 5/24/00 99,562
International 50,000 6.05 5/30/00 49,731
Funding, Inc. 68,583 6.05 5/31/00 68,203
50,000 6.08 6/02/00 49,706
--------------------------------------------------------------------------------------------
GTE Funding Inc. 20,700 6.03 5/16/00 20,638
--------------------------------------------------------------------------------------------
General Electric 50,000 6.221+ 10/04/00 49,980
Capital Corp.
--------------------------------------------------------------------------------------------
General Electric 40,000 5.73 5/25/00 39,819
Capital Services Inc.
--------------------------------------------------------------------------------------------
Greenwich Funding 78,107 5.91 5/02/00 78,057
Corp. 25,775 6.07 5/02/00 25,758
46,118 5.96 6/01/00 45,854
--------------------------------------------------------------------------------------------
Internationale 93,000 6.03 5/04/00 92,907
Nederlanden (U.S.)
Funding Corp.
--------------------------------------------------------------------------------------------
John Deere Capital 40,000 6.05 5/02/00 39,973
Corp
--------------------------------------------------------------------------------------------
Kitty Hawk 90,645 6.05 5/09/00 90,477
Funding Corp. 75,000 5.96 6/01/00 74,571
10,165 5.99 6/01/00 10,107
--------------------------------------------------------------------------------------------
Lehman Brothers 40,000 6.08 8/01/00 39,339
Holdings Inc.
--------------------------------------------------------------------------------------------
Monsanto Company 7,290 5.98 6/19/00 7,226
--------------------------------------------------------------------------------------------
Mont Blanc 39,009 6.01 6/05/00 38,759
Capital Corp. 35,991 6.08 6/13/00 35,713
--------------------------------------------------------------------------------------------
Monte Rosa Capital 22,500 6.05 5/22/00 22,409
Corporation 52,781 6.08 6/15/00 52,359
--------------------------------------------------------------------------------------------
Morgan Stanley, 111,549 6.06 5/01/00 111,493
Dean Witter & Co. 50,000 6.10 6/20/00 49,554
25,000 6.699+ 11/13/00 25,057
25,000 6.249+ 1/22/01 24,989
25,000 6.11 3/16/01 25,000
--------------------------------------------------------------------------------------------
New Center Asset 50,000 5.95 6/08/00 49,656
Trust 150,000 5.93 6/16/00 148,774
--------------------------------------------------------------------------------------------
Old Line Funding 40,093 6.05 5/02/00 40,066
Corp. 34,516 5.91 5/04/00 34,482
17,426 6.06 5/10/00 17,391
53,577 6.05 5/23/00 53,352
9,879 6.08 6/05/00 9,816
--------------------------------------------------------------------------------------------
Park Avenue 11,126 6.04 5/09/00 11,105
Receivables Corp. 75,537 6.04 5/25/00 75,195
--------------------------------------------------------------------------------------------
Prudential Funding 100,000 6.03 5/12/00 99,766
Corp.
--------------------------------------------------------------------------------------------
SK Global 35,000 5.96 6/02/00 34,794
America, Inc.
--------------------------------------------------------------------------------------------
Salomon, Smith 50,000 6.03 5/18/00 49,833
Barney Holdings, Inc. 50,000 6.05 5/19/00 49,824
--------------------------------------------------------------------------------------------
Santander Finance 50,000 5.72 5/18/00 49,834
(Delaware), Inc.
--------------------------------------------------------------------------------------------
Tulip Funding Corp. 54,185 5.92 5/08/00 54,096
33,265 5.93 5/15/00 33,172
25,000 5.89 5/19/00 24,913
12,550 5.90 5/19/00 12,506
--------------------------------------------------------------------------------------------
Variable Funding 51,200 6.08 5/01/00 51,174
Capital Corp. 50,000 5.91 5/08/00 49,918
38,800 5.92 5/08/00 38,737
50,000 5.91 5/09/00 49,910
85,000 6.115+ 8/22/00 85,000
25,000 6.115+ 8/24/00 25,000
--------------------------------------------------------------------------------------------
WCP Funding Inc. 50,000 6.06 5/17/00 49,840
--------------------------------------------------------------------------------------------
Windmill Funding 25,000 6.03 5/02/00 24,983
Corp. 46,560 6.04 5/03/00 46,521
50,000 6.07 5/04/00 49,949
75,000 6.03 5/08/00 74,874
50,000 6.03 5/11/00 49,891
30,000 5.95 5/22/00 29,879
18,000 6.08 6/06/00 17,881
25,000 6.10 6/21/00 24,773
10,000 6.11 6/26/00 9,900
--------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost -- $7,054,411) ......................................................... 7,054,135
--------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
----------------------------------------------------------------------------------------------------------
Corporate Notes -- 16.2%
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AT&T Capital $ 9,000 7.594+% 6/14/00 $ 9,013
Corporation 10,000 7.50 11/15/00 10,027
----------------------------------------------------------------------------------------------------------
Abbey National 59,000 6.029+ 8/03/00 58,993
Treasury Services 31,000 5.91 8/09/00 30,912
PLC 75,000 6.00 11/20/00 74,451
----------------------------------------------------------------------------------------------------------
American Honda 50,000 6.28+ 8/02/00 49,997
Finance Corp.
----------------------------------------------------------------------------------------------------------
Bear Stearns 39,000 6.23+ 7/10/00 39,008
Companies, Inc.
----------------------------------------------------------------------------------------------------------
CIT Group Holdings, 73,000 6.155+ 5/30/00 72,997
Inc. (The) 50,000 6.198+ 6/29/00 49,996
50,000 6.25+ 8/14/00 49,977
127,000 6.109+ 3/27/01 126,920
----------------------------------------------------------------------------------------------------------
Citicorp 50,000 6.163+ 8/02/00 50,000
----------------------------------------------------------------------------------------------------------
Ford Motor 70,000 6.20+ 5/05/00 70,000
Credit Company 150,000 6.20+ 5/23/00 150,000
28,000 6.37+ 6/08/00 28,009
50,000 6.24+ 8/18/00 49,986
150,000 6.27+ 10/02/00 149,972
150,000 6.125+ 11/24/00 149,958
----------------------------------------------------------------------------------------------------------
General Electric 31,000 6.041+ 5/03/00 31,000
Capital Corp. 29,400 6.049+ 5/12/00 29,399
100,000 6.05+ 5/26/00 99,989
----------------------------------------------------------------------------------------------------------
General Motors 25,000 6.06+ 6/12/00 24,992
Acceptance Corp. 21,000 6.80 7/03/00 21,017
25,000 5.75 7/28/00 24,957
75,000 6.28+ 10/06/00 74,975
25,000 6.43+ 11/09/00 25,031
48,500 6.251+ 12/01/00 48,509
33,000 6.14+ 2/27/01 32,974
----------------------------------------------------------------------------------------------------------
Goldman Sachs 125,000 6.203+ 7/07/00 125,000
Group, Inc. 50,000 6.203+ 8/04/00 50,000
30,000 6.00 8/07/00 29,945
18,000 6.55 12/22/00 18,000
27,000 6.12+ 5/15/01 27,000
----------------------------------------------------------------------------------------------------------
Household Finance 25,000 6.09+ 11/01/00 25,007
Corp.
----------------------------------------------------------------------------------------------------------
International 28,500 6.104+ 5/21/01 28,511
Business Machines
Corp.
----------------------------------------------------------------------------------------------------------
LINCS, Series 1998-2 50,000 5.913+ 3/01/01 50,000
----------------------------------------------------------------------------------------------------------
Prudential Funding 50,000 6.104+ 5/22/00 50,002
Corp.
----------------------------------------------------------------------------------------------------------
Restructured Asset 48,000 6.18+ 8/11/00 48,000
Securities with
Enhanced Returns,
Series 1998-MM-7-1 Trust
----------------------------------------------------------------------------------------------------------
SAVES-99-1 40,000 6.39+ 10/04/00 40,000
----------------------------------------------------------------------------------------------------------
SMM Trust, 175,000 6.321+ 9/25/00 175,000
Series 1999-H
----------------------------------------------------------------------------------------------------------
Xerox Capital 75,000 6.221+ 7/19/00 74,968
(Europe) PLC
----------------------------------------------------------------------------------------------------------
Xerox Corp. 20,000 5.635 7/14/00 19,939
15,000 5.70 7/26/00 14,958
----------------------------------------------------------------------------------------------------------
Total Corporate Notes
(Cost -- $2,410,259) ...................................................................... 2,409,389
----------------------------------------------------------------------------------------------------------
Funding Agreements -- 1.8%
----------------------------------------------------------------------------------------------------------
Hartford Life 50,000 5.963+ 12/01/00 50,000
Insurance Company
----------------------------------------------------------------------------------------------------------
Jackson National 50,000 6.153+ 5/01/00 50,000
Life Insurance Co. 50,000 6.25+ 5/01/01 50,000
----------------------------------------------------------------------------------------------------------
Monumental Life 30,000 6.058+ 11/17/00 30,000
Insurance Company
----------------------------------------------------------------------------------------------------------
Principal Life 20,000 6.013+ 8/16/00 20,000
Insurance Co.
----------------------------------------------------------------------------------------------------------
Security Life 50,000 6.33 6/28/00 50,000
of Denver
Insurance Co.
----------------------------------------------------------------------------------------------------------
The Travelers 20,000 5.943+ 2/01/01 20,000
Insurance Company
----------------------------------------------------------------------------------------------------------
Total Funding Agreements
(Cost -- $270,000) ........................................................................ 270,000
----------------------------------------------------------------------------------------------------------
US Government, Agency & Instrumentality
Obligations -- Non-Discount -- 10.6%
----------------------------------------------------------------------------------------------------------
Federal Home 100,000 6.242+ 7/14/00 100,013
Loan Banks 6,500 4.905 11/20/00 6,453
13,050 5.33 3/20/01 12,906
----------------------------------------------------------------------------------------------------------
Federal Home 125,000 6.282+ 7/14/00 124,987
Loan Mortgage 30,000 5.05 11/17/00 29,808
Corporation 25,000 5.13 11/24/00 24,843
52,000 5.18 11/24/00 51,687
17,525 5.25 1/19/01 17,379
40,000 5.15 1/26/01 39,625
20,000 5.18 2/09/01 19,802
20,000 5.53 3/09/01 19,824
----------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<TABLE>
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
-----------------------------------------------------------------------------------------
US Government, Agency &
Instrumentality Obligations --
Non-Discount (continued)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Federal National $ 50,000 6.312+% 7/21/00 $ 49,994
Mortgage 50,000 6.312+ 8/02/00 49,987
Association 50,620 4.89 10/13/00 50,234
50,000 5.07 12/14/00 49,494
23,500 5.21 1/26/01 23,229
33,150 5.52 3/06/01 32,795
20,000 5.48 5/03/01 19,737
24,000 6.00 6/21/01 23,763
10,000 6.00 7/17/01 9,893
50,000 6.082+ 9/17/01 49,947
50,000 6.292+ 4/19/02 50,000
-----------------------------------------------------------------------------------------
Student Loan 125,000 6.431+ 9/29/00 124,984
Marketing 125,000 6.432+ 9/29/00 124,990
Association 150,000 6.427+ 10/02/00 149,965
50,000 4.75 12/11/00 49,409
50,000 6.222+ 3/09/01 49,979
7,415 5.46 3/30/01 7,325
75,000 6.302+ 8/23/01 74,962
100,000 6.252+ 4/12/02 99,945
-----------------------------------------------------------------------------------------
US Treasury Notes 25,000 4.625 11/30/00 24,750
-----------------------------------------------------------------------------------------
Total US Government, Agency &
Instrumentality Obligations --
Non-Discount
(Cost -- $1,567,251) ................................................... 1,562,709
-----------------------------------------------------------------------------------------
Total Investments
(Cost -- $14,932,959) -- 101.5% ........................................ 14,924,330
Liabilities in Excess of
Other Assets -- (1.5%) ................................................. (221,277)
------------
Net Assets -- 100.0% ................................................... $ 14,703,053
============
-----------------------------------------------------------------------------------------
</TABLE>
* 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, 2000.
+ Floating rate notes.
See Notes to Financial Statements.
7
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities as of April 30, 2000
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets: Investments, at value (identified cost -- $14,932,959,234*) ... $14,924,330,364
Receivables:
Interest .................................................... $ 80,533,988
Securities sold ............................................. 1,053,564
Beneficial interest sold .................................... 573,339 82,160,891
------------
Prepaid registration fees and other assets .................... 578,109
---------------
Total assets .................................................. 15,007,069,364
---------------
------------------------------------------------------------------------------------------------------------
Liabilities: Payables:
Beneficial interest redeemed ................................ 179,132,877
Securities purchased ........................................ 115,007,922
Investment adviser .......................................... 3,977,409
Distributor ................................................. 162,100 298,280,308
------------
Accrued expenses and other liabilities ........................ 5,735,872
---------------
Total liabilities ............................................. 304,016,180
---------------
------------------------------------------------------------------------------------------------------------
Net Assets: Net assets .................................................... $14,703,053,184
===============
------------------------------------------------------------------------------------------------------------
Net Assets Class I shares of beneficial interest, $.10 par value,
Consist of: unlimited number of shares authorized ......................... $ 1,368,610,094
Class II shares of beneficial interest, $.10 par value,
unlimited number of shares authorized ......................... 102,558,112
Paid-in capital in excess of par .............................. 13,240,513,848
Unrealized depreciation on investments -- net ................. (8,628,870)
---------------
Net assets .................................................... $14,703,053,184
===============
------------------------------------------------------------------------------------------------------------
Net Asset Class I -- Based on net assets of $13,677,983,561 and
Value: 13,686,100,938 shares outstanding ............................. $ 1.00
===============
Class II -- Based on net assets of $1,025,069,623 and
1,025,581,116 shares outstanding .............................. $ 1.00
===============
------------------------------------------------------------------------------------------------------------
</TABLE>
* Cost for Federal income tax purposes. As of April 30, 2000, net unrealized
depreciation for Federal income tax purposes amounted to $8,628,870, of
which $206,963 related to appreciated securities and $8,835,833 related to
depreciated securities.
See Notes to Financial Statements.
8
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
FINANCIAL INFORMATION (continued)
Statement of Operations
<TABLE>
<CAPTION>
For the
Six Months Ended
April 30, 2000
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Investment Income: Interest and amortization of premium and discount earned ...... $ 458,606,972
----------------------------------------------------------------------------------------------------------------------
Expenses: Investment advisory fees ...................................... $ 26,555,959
Transfer agent fees -- Class I ................................ 8,373,129
Distribution fees -- Class II ................................. 1,287,949
Transfer agent fees -- Class II ............................... 773,181
Registration fees ............................................. 567,681
Printing and shareholder reports .............................. 499,367
Accounting services ........................................... 378,064
Custodian fees ................................................ 220,213
Professional fees ............................................. 97,630
Trustees' fees and expenses ................................... 55,981
Pricing services .............................................. 16,143
Other ......................................................... 60,199
------------
Total expenses ................................................ 38,885,496
-------------
Investment income -- net ...................................... 419,721,476
-------------
----------------------------------------------------------------------------------------------------------------------
Realized & Unreal- Realized loss on investments -- net ........................... (500,617)
ized Gain (Loss) Change in unrealized depreciation on investments -- net ....... 5,634,572
On Investments -- -------------
Net: Net Increase in Net Assets Resulting from Operations .......... $ 424,855,431
=============
----------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
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, 2000 Oct. 31, 1999
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations: Investment income -- net .................................. $ 419,721,476 $ 699,683,340
Realized loss on investments -- net ....................... (500,617) (134,258)
Change in unrealized appreciation/depreciation
on investments -- net ..................................... 5,634,572 (18,651,934)
---------------- ---------------
Net increase in net assets resulting from operations ...... 424,855,431 680,897,148
---------------- ---------------
---------------------------------------------------------------------------------------------------------------------
Dividends to Investment income -- net:
Shareholders: Class I ................................................. (385,020,945) (659,925,475)
Class II ................................................ (34,199,914) (39,623,607)
---------------- ---------------
Net decrease in net assets resulting from dividends
to shareholders ........................................... (419,220,859) (699,549,082)
---------------- ---------------
---------------------------------------------------------------------------------------------------------------------
Beneficial Interest Net increase (decrease) in net assets derived
Transactions: from beneficial interest transactions ..................... (532,341,066) 1,274,305,349
---------------- ---------------
---------------------------------------------------------------------------------------------------------------------
Net Assets: Total increase (decrease) in net assets ................... (526,706,494) 1,255,653,415
Beginning of period ....................................... 15,229,759,678 13,974,106,263
---------------- ---------------
End of period ............................................. $ 14,703,053,184 $15,229,759,678
================ ===============
---------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
FINANCIAL INFORMATION (continued)
Financial Highlights
<TABLE>
<CAPTION>
Class I
--------------------------------------------------------------------------
The following per share data and ratios have
been derived from information provided in For the Six
the financial statements. Months Ended For the Year Ended October 31,
April 30, ---------------------------------------------------------
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Operating ------------ ------------ ------------ ------------ -----------
Performance: Investment income -- net ............... .0275 .0474 .0517 .0512 .0509
Realized and unrealized gain (loss) on
investments -- net ..................... .0004 (.0012) .0004 .0001 (.0002)
------------ ------------ ------------ ------------ -----------
Total from investment operations ....... .0279 .0462 .0521 .0513 .0507
------------ ------------ ------------ ------------ -----------
Less dividends and distributions:
Investment income -- net ............. (.0275) (.0474) (.0517) (.0512) (.0509)
Realized gain on investments -- net .. -- -- (.0001) (.0001) (.0001)
------------ ------------ ------------ ------------ -----------
Total dividends and distributions ...... (.0275) (.0474) (.0518) (.0513) (.0510)
------------ ------------ ------------ ------------ -----------
Net asset value, end of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ===========
Total investment return ................ 5.56%* 4.84% 5.31% 5.35% 5.19%
============ ============ ============ ============ ===========
----------------------------------------------------------------------------------------------------------------------------------
Ratios to Expenses ............................... .49%* .50% .55% .54% .56%
Average ============ ============ ============ ============ ===========
Net Assets:
Investment income and realized gain
on investments -- net .................. 5.51%* 4.75% 5.19% 5.13% 5.07%
============ ============ ============ ============ ===========
----------------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, end of period
Data: (in thousands) ......................... $ 13,677,983 $ 13,865,025 $ 13,917,721 $ 10,690,345 $ 9,340,229
============ ============ ============ ============ ===========
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
See Notes to Financial Statements.
11
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
FINANCIAL INFORMATION (concluded)
Financial Highlights (concluded)
<TABLE>
<CAPTION>
Class II
-------------------------------------------
For the For the For the
Six Months Year Period
The following per share data and ratios have been derived Ended Ended Oct. 5, 1998+
from information provided in the financial statements. April 30, Oct. 31, to Oct. 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Net asset value, beginning of period .................. $ 1.00 $ 1.00 $ 1.00
Operating ----------- ----------- --------
Performance: Investment income -- net .............................. .0265 .0454 .0037
Realized and unrealized gain (loss) on
investments -- net .................................... .0004 (.0019) .0010
----------- ----------- --------
Total from investment operations ...................... .0269 .0435 .0047
----------- ----------- --------
Less dividends and distributions:
Investment income -- net ............................ (.0265) (.0454) (.0037)
Realized gain on investments -- net ................. -- -- --+++
----------- ----------- --------
Total dividends and distributions ..................... (.0265) (.0454) (.0037)
----------- ----------- --------
Net asset value, end of period ........................ $ 1.00 $ 1.00 $ 1.00
=========== =========== ========
Total investment return ............................... 5.36%* 4.63% 5.16%*
=========== =========== ========
--------------------------------------------------------------------------------------------------------------------------
Ratios to Average Expenses .............................................. .69%* .71% .72%*
Net Assets: =========== =========== ========
Investment income and realized gain on
investments -- net .................................... 5.30%* 4.54% 4.69%*
=========== =========== ========
--------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, end of period (in thousands) .............. $ 1,025,070 $ 1,364,735 $ 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, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Retirement Reserves Money Fund (the "Fund") is a separate Fund
offering separate classes 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 accounting principles generally
accepted in the United States of America, which may require the use of
management accruals and estimates. These unaudited financial statements reflect
all adjustments, which are, in the opinion of management, necessary to a fair
statement of the results for the interim period presented. All such adjustments
are of a normal recurring nature. The Fund offers 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 polices
consistently followed by the Fund.
(a) Valuation of investments--Portfolio securities with remaining maturities of
greater than sixty days, for which market quotations are readily available, are
valued at market value. 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 a variable rate security is deemed to be the next
coupon date on which the interest rate is to be adjusted. Other investments and
assets for which market quotations are not 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. If the seller defaults and
the fair value of the collateral declines, liquidation of the collateral of the
Fund may be delayed or limited.
(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
Distributor ("MLFD" or the "Distributor"), a division of Princeton Funds
Distributor, Inc. ("PFD"), which
13
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
is a wholly-owned subsidiary of Merrill Lynch Group, Inc.
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: .50% of the Fund's average daily net assets not exceeding $1
billion; .45% of average daily net assets in excess of $1 billion but not
exceeding $2 billion; .40% of average daily net assets in excess of $2 billion
but not exceeding $3 billion; .375% of average daily net assets in excess of $3
billion but not exceeding $4 billion; .35% of average daily net assets in excess
of $4 billion but not exceeding $7 billion; .325% of average daily net assets in
excess of $7 billion but not exceeding $10 billion; .30% of average daily net
assets in excess of $10 billion but not exceeding $15 billion and .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
.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 (decrease) in net assets derived from beneficial interest
transactions was $(532,341,066) and $1,274,305,349 for the six months ended
April 30, 2000 and the year ended October 31, 1999, respectively.
Transactions in shares of beneficial interest for each class were as follows:
--------------------------------------------------------------------------------
Class I Shares for the Six Dollar
Months Ended April 30, 2000 Shares Amount
--------------------------------------------------------------------------------
Shares sold ..................... 28,913,180,699 $ 28,913,180,699
Shares issued to share-
holders in reinvestment
of dividends .................... 385,009,742 385,009,742
--------------- ----------------
Total issued .................... 29,298,190,441 29,298,190,441
Shares redeemed ................. (29,490,361,050) (29,490,361,050)
--------------- ----------------
Net decrease .................... (192,170,609) $ (192,170,609)
=============== ================
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class I Shares for the Year Dollar
Ended October 31, 1999 Shares Amount
--------------------------------------------------------------------------------
Shares sold ..................... 43,972,818,950 $ 43,972,818,950
Shares issued to share-
holders in reinvestment
of dividends .................... 659,870,375 659,870,375
--------------- ----------------
Total issued .................... 44,632,689,325 44,632,689,325
Shares redeemed ................. (44,667,735,705) (44,667,735,705)
--------------- ----------------
Net decrease .................... (35,046,380) $ (35,046,380)
=============== ================
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class II Shares for the Six Dollar
Months Ended April 30, 2000 Shares Amount
--------------------------------------------------------------------------------
Shares sold ....................... 2,753,801,747 $ 2,753,801,747
Shares issued to share-
holders in reinvestment
of dividends ...................... 34,200,217 34,200,217
-------------- ---------------
Total issued ...................... 2,788,001,964 2,788,001,964
Shares redeemed ................... (3,128,172,421) (3,128,172,421)
-------------- ---------------
Net decrease ...................... (340,170,457) $ (340,170,457)
============== ===============
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class II Shares for the Year Dollar
Ended October 31, 1999 Shares Amount
--------------------------------------------------------------------------------
Shares sold ....................... 7,590,795,757 $ 7,590,795,757
Shares issued to share-
holders in reinvestment
of dividends ...................... 39,614,823 39,614,823
-------------- ---------------
Total issued ...................... 7,630,410,580 7,630,410,580
Shares redeemed ................... (6,321,058,851) (6,321,058,851)
-------------- ---------------
Net increase ...................... 1,309,351,729 $ 1,309,351,729
============== ===============
--------------------------------------------------------------------------------
4. Capital Loss Carryforward:
At October 31, 1999, the Fund had a net capital loss carryforward of
approximately $325,000, all of which expires in 2007. This amount will be
available to offset like amounts of any future taxable gains.
14
<PAGE>
Merrill Lynch Retirement Reserves Money Fund April 30, 2000
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
Ira P. Shapiro, 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
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. 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.
Merrill Lynch
Retirement Reserves
Money Fund
Box 9011
Princeton, New Jersey
08543-9011 #10262--4/00
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