MERRILL LYNCH
READY ASSETS
TRUST
FUND LOGO
Semi-Annual Report
June 30, 1995
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Trust unless
accompanied or preceded by the Trust's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The
Trust seeks to maintain a consistent $1.00 net asset value per
share, although this cannot be assured. An investment in the Trust
is neither insured nor guaranteed by the US Government.
Merrill Lynch
Ready Assets Trust
Box 9011
Princeton, NJ
08543-9011
<PAGE>
DEAR SHAREHOLDER
For the six-month period ended June 30, 1995, Merrill Lynch Ready
Assets Trust paid shareholders a net annualized yield of 5.53%*. The
Trust's 7-day yield as of June 30, 1995 was 5.52% (excluding gains
and losses) and 5.53% (including gains and losses).
The Environment
During the first six months of 1995, economic data finally showed
evidence of slowing activity. Gross domestic product (GDP) growth
for the first three months of 1995 was reported at 2.7%, the weakest
showing in the past 18 months. Other signs of a sluggish economy
included slowing growth in the manufacturing sector in May and June
as well as three consecutive months of declines in the Index of
Leading Economic Indicators, an occurrence which has often (but not
always) forecast recessions. As a result, by the end of June
concerns had arisen that the economic "soft landing" could turn into
an actual recession. However, at the same time there were also
expectations that a few months of very slow or zero growth could be
followed by a pickup in economic activity later in the year. This
view was supported by the stronger-than-expected employment data for
June and an upward revision in May's employment figures.
Thus far in 1995, economic developments have been very positive for
the US stock and bond markets, and most US stock market averages
recently have attained record levels. In contrast, the US dollar has
been persistently weak, especially relative to the yen. Following
the Federal Reserve Board's cut in short-term interest rates in
early July, continued signs of a moderating expansion and well-
contained inflationary pressures would provide further assurance
that the peak in US interest rates is behind us, creating a stronger
foundation for higher stock and bond prices. On the other hand,
indications of reaccelerating growth and increasing inflationary
pressures would likely suggest that higher interest rates are on the
horizon, a negative development for the US financial markets.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Portfolio Matters
For the six months ended June 30, 1995, Merrill Lynch Ready Assets
Trust maintained an average life ranging from a low of 45 days to a
high of 85 days. Throughout most of the period, the Trust's average
life was extended to reflect our progressively optimistic stance on
the direction of interest rates.
<PAGE>
As 1995 began, the Trust's average life was held in the high
40-day--low 50-day area while we awaited the results of the February 1,
1995 Federal Open Market Committee (FOMC) meeting. The meeting,
which produced a 50 basis point (0.50%) increase in interest rates,
allowed us to modestly increase the Trust's average life to the mid
50-day--low 60-day area as strong technicals dominated the market.
In spite of the market's improved sentiment, much of the Trust's new
investments were concentrated in the six-month--one-year area, which
captured much of the steepness in the yield curve. As we approached
the end of March, our outlook brightened further as it became
apparent that the central bank would be less likely to aggressively
raise interest rates. By the end of March, the Trust's average life
stood at 61 days.
This strategy continued into the second half of the period, as we
extended the Trust's average life to the mid 70-day--low 80-day
area. Strong demand for longer-dated securities coupled with a 6%
Federal Funds rate actually inverted the yield curve whereby two-
year Treasury notes traded at a low yield of 5.32%. As the economy
showed definite signs of slowing, interest rates fell to their
lowest levels in recent history. As a result, the Trust emphasized
selected areas that reflected good relative value, with commitments
to the very front end of the investment spectrum, the six-month area
and the two-year sector. Much of the exposure in the longer end was
in Treasury securities and Federal agencies as quality spreads were
narrow further out on the yield curve. As the period came to a
close, we reduced the Trust's average life to 75 days in
anticipation of the July FOMC meeting.
Looking ahead, we anticipate that as inflation remains under
control, the level of real interest rates will allow the Federal
Reserve Board ample room to lower interest rates in the near term in
order to maintain neutrality. Accordingly, we expect to maintain the
Trust's average life towards the longer end of our parameters.
The portfolio's composition at the end of the June period and as of
our last report is detailed below:
6/30/95 12/31/94
Bank Notes 3.3% 0.4%
Certificates of Deposit--European 1.0 --
Certificates of Deposit--Yankee* 5.2 0.4
Commercial Paper-- Discount 44.5 48.2
Corporate Notes 2.0 --
Master Notes 3.1 3.1
Repurchase Agreements 3.7 --
US Government, Agency &
Instrumentality--Discount 17.7 20.0
US Government, Agency &
Instrumentality--Non-Discount 20.3 29.8
Other Liabilities--Net (0.8) (1.9)
------ ------
Total 100.0% 100.0%
====== ======
<PAGE>
[FN]
*US branches of foreign banks.
In Conclusion
We thank you for your support of Merrill Lynch Ready Assets Trust,
and we look forward to serving your investment needs in the months
and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(John Ng)
John Ng
Vice President and Portfolio Manager
July 26, 1995
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
Bank Notes--3.3%
First Bank N.A. $ 50,000 6.01% 7/07/95 $ 50,000
Milwaukee
First Bank N.A. 50,000 6.01 7/07/95 50,000
Minnesota
First Bank of 50,000 6.00 7/05/95 50,000
South Dakota N.A.
Morgan Guaranty 50,000 6.40 5/28/96 50,005
Trust Co.
<PAGE>
Nations Bank N.A. 25,000 5.65 7/21/95 24,993
(Carolinas)
Total Bank Notes
(Cost--$224,997) 224,998
Certificates of Deposit--European--1.0%
Abbey National 20,000 6.40 9/15/95 20,014
Treasury Services PLC 50,000 6.42 5/29/96 50,005
Total Certificates of Deposit--European
(Cost--$70,003) 70,019
Certificates of Deposit--Yankee--5.2%
Commerzbank AG 44,000 6.31 9/15/95 44,023
Deutsche Bank AG 40,000 6.40 5/29/96 40,004
Rabobank 20,000 6.51 8/09/95 20,011
Nederland, NY
Sumitomo Bank 50,000 6.07 7/05/95 50,000
Ltd., NY
Swiss Bank Corp. NY 200,000 5.85 8/08/95 199,989
Total Certificates of Deposit--Yankee
(Cost--$353,998) 354,027
Commercial Paper--Discount--44.5%
ANZ (Delaware) Inc. 25,000 6.27 8/07/95 24,846
25,000 6.27 8/14/95 24,818
25,000 6.17 9/29/95 24,627
American Express 75,000 6.10 7/05/95 74,937
Credit Corp. 28,000 6.06 10/23/95 27,481
50,000 6.04 10/30/95 49,017
Apreco, Inc. 15,000 6.10 7/06/95 14,985
<PAGE>
Bear Stearns 50,000 6.10 7/06/95 49,950
Companies Inc. (The) 50,000 5.98 8/04/95 49,713
25,000 5.95 8/07/95 24,846
10,000 5.90 8/11/95 9,932
25,000 6.33 8/14/95 24,818
50,000 5.91 8/25/95 49,545
45,000 5.75 9/01/95 44,535
Beta Finance Inc. 23,000 6.18 10/05/95 22,641
32,000 5.50 11/17/95 31,284
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
Commercial Paper--Discount (continued)
CSW Credit, Inc. $ 12,000 5.97% 7/14/95 $ 11,972
5,000 5.97 7/17/95 4,986
32,900 5.95 7/25/95 32,764
CXC Incorporated 25,000 5.97 8/15/95 24,813
Cheltenham & 25,000 5.50 11/06/95 24,485
Glouster Building
Society
Commonwealth 25,000 5.50 11/06/95 24,485
Bank of Australia
Corporate 50,000 5.95 7/12/95 49,901
Receivables Corp. 37,000 5.93 8/23/95 36,675
Deer Park 25,000 6.00 7/07/95 24,971
Refining L.P. 25,000 6.00 7/14/95 24,942
Diamond Asset 6,384 5.97 7/31/95 6,351
Funding Corporation 16,870 5.97 8/25/95 16,716
<PAGE>
Dow Jones & 30,000 6.27 8/09/95 29,805
Company, Inc.
du Pont (E.I.) de 45,000 6.05 10/10/95 44,261
Nemours & Co. 50,000 6.05 10/11/95 49,170
ESC Securitization 15,000 5.95 7/14/95 14,965
Inc.
Eiger Capital Corp. 50,000 5.93 7/11/95 49,909
26,418 5.95 7/12/95 26,366
23,000 5.98 7/24/95 22,908
Eksportfinans (A/S) 19,600 5.95 11/06/95 19,196
20,000 5.95 11/07/95 19,585
Falcon Asset 14,275 5.94 7/26/95 14,214
Securitization Corp.
Ford Motor 50,000 6.30 8/02/95 49,730
Credit Company 25,000 6.14 9/11/95 24,701
7,755 6.14 9/15/95 7,657
130,000 5.91 10/05/95 127,968
5,000 6.00 10/05/95 4,922
General Electric 25,000 6.12 10/10/95 24,589
Capital Corp.
Goldman Sachs 40,000 5.91 9/08/95 39,541
Group, L.P. 10,000 6.11 9/18/95 9,869
50,000 6.14 9/18/95 49,344
39,000 6.14 9/19/95 38,482
Hanson Finance 10,000 5.88 9/08/95 9,885
(UK) PLC
International Lease 20,000 6.14 l0/02/95 19,697
Finance Corp.
Kingdom of Sweden 40,000 6.27 8/04/95 39,771
100,000 6.12 9/26/95 98,558
40,000 5.90 10/02/95 39,394
13,105 6.04 10/20/95 12,869
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
Commercial Paper--Discount (concluded)
Leeds Permanent $100,000 6.15% 10/10/95 $ 98,357
Building Society
Matterhorn Capital 30,000 5.95 7/17/95 29,916
Corp.
McKenna Triangle 25,000 6.27 8/07/95 24,846
National Corp. 25,000 6.27 8/08/95 24,842
10,000 6.27 8/09/95 9,935
25,000 6.20 9/01/95 24,742
50,000 6.17 10/03/95 49,235
10,000 5.87 11/07/95 9,792
National Australia 19,000 6.28 8/04/95 18,891
Funding (Delaware), 55,000 5.90 10/11/95 54,087
Inc. 50,000 5.50 12/01/95 48,781
National Fleet 50,000 6.00 7/13/95 49,892
Funding Corp. 45,900 6.00 7/20/95 45,747
New Center Asset 15,000 5.86 8/18/95 14,881
Trust 50,000 6.20 8/29/95 49,513
35,000 6.05 9/15/95 34,558
75,000 6.15 9/15/95 74,054
30,000 6.05 9/18/95 29,607
25,000 5.91 10/05/95 24,609
Nomura Holding 25,000 6.03 7/07/95 24,971
America, Inc.
Oesterreichische 115,500 6.13 9/27/95 113,815
Kontrollbank AG 15,500 6.12 10/06/95 15,255
Pitney Bowes Credit 8,000 6.13 10/02/95 7,879
Corp.
Premium Funding, Inc. 40,615 6.07 7/10/95 40,548
Province of Ontario 10,000 6.14 9/22/95 9,862
Santander Finance 25,000 6.27 8/07/95 24,846
(Delaware) Inc.
<PAGE>
Svenska 30,000 6.03 7/20/95 29,901
Handelsbanken, Inc. 70,000 6.03 7/21/95 69,756
U.S. Borax Inc. 30,400 6.27 8/08/95 30,208
50,000 6.27 8/09/95 49,675
13,414 5.87 11/09/95 13,131
Unilever Capital Corp. 25,000 6.30 8/02/95 24,865
Vattenfall Treasury 10,000 6.10 7/27/95 9,955
AB Inc.
Windmill Funding 40,000 5.97 7/17/95 39,887
Corp. 21,469 6.00 7/28/95 21,369
29,679 5.98 7/31/95 29,526
Wool International 57,000 5.50 11/22/95 55,680
Inc.
Total Commercial Paper--Discount
(Cost--$3,044,982) 3,045,806
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
Corporate Notes--2.0%
Abbey National $ 60,000 7.05 % 3/01/96 $ 60,402
Treasury Services PLC
Bear Stearns 17,500 5.875 1/15/96 17,476
Companies Inc. (The)
SMM Trust 57,000 6.08 6/14/96 57,000
Certificate (1995-K)
Total Corporate Notes
(Cost--$134,467) 134,878
Master Notes--3.1%
Goldman Sachs 26,000 6.09 11/24/95 26,000
Group, L.P. 150,000 6.09 2/14/96 150,000
<PAGE>
Smith Barney, Inc. 41,000 6.05 3/07/96 41,000
Total Master Notes
(Cost--$217,000) 217,000
US Government, Agency & Instrumentality
Obligations--Discount--17.7%
Federal Farm Credit 50,000 6.10 11/01/95 50,000
Bank
Federal Home Loan 10,000 5.67 8/07/95 9,939
Bank 79,000 4.625 8/09/95 78,922
35,000 5.87 8/15/95 34,739
6,225 5.89 10/17/95 6,117
20,000 5.92 10/27/95 19,620
20,000 6.05 12/26/95 19,441
17,330 5.97 1/16/96 16,792
30,000 6.06 1/19/96 29,054
25,000 7.13 2/09/96 25,185
19,000 7.10 4/03/97 19,006
24,000 6.42 6/12/97 24,000
Federal Home Loan 79,000 4.635 8/09/95 78,927
Mortgage Corporation 19,223 5.87 8/16/95 19,076
74,873 5.84 8/18/95 74,278
25,200 5.25 2/14/97 24,794
Federal National 37,785 5.87 8/14/95 37,510
Mortgage Association 33,000 5.89 8/17/95 32,743
150,000 5.90 8/17/95 148,832
14,835 5.84 8/23/95 14,705
40,000 5.80 8/31/95 39,598
40,000 5.82 8/31/95 39,598
34,900 5.78 9/12/95 34,486
45,000 5.95 9/22/95 44,394
7,625 5.89 10/18/95 7,491
1,150 5.89 10/19/95 1,130
21,620 5.96 10/20/95 21,233
26,895 5.52 12/07/95 26,223
23,945 5.50 12/21/95 23,295
50,000 5.51 12/22/95 48,634
36,350 6.05 12/29/95 35,317
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
US Government, Agency & Instrumentality
Obligations--Discount (concluded)
US Treasury Bills $ 75,000 6.72% 12/14/95 $ 73,104
60,000 6.02 4/04/96 57,475
Total US Government, Agency &
Instrumentality Obligations--Discount
(Cost--$1,214,475) 1,215,658
US Government, Agency & Instrumentality
Obligations--Non-Discount--20.3%
Federal Home Loan 75,000 6.43 12/28/95 75,000
Bank++ 73,000 6.46 6/17/96 73,000
29,000 6.46 6/21/96 29,000
Federal Home Loan 41,000 6.36 9/01/95 40,999
Mortgage 39,000 6.37 9/01/95 38,999
Corporation++ 16,000 6.33 5/06/96 16,000
15,000 6.50 5/13/98 15,000
Federal National 30,000 5.98 9/22/95 29,998
Mortgage 30,000 6.40 12/20/95 30,000
Association++ 8,000 6.37 1/26/96 7,997
25,000 5.61 2/07/96 24,998
95,000 6.33 5/13/96 95,000
70,000 6.33 5/24/96 70,000
40,000 5.00 7/08/96 39,965
110,000 5.78 10/11/96 110,000
100,000 5.73 2/21/97 100,000
70,000 6.45 5/19/97 70,000
65,000 6.50 5/14/98 65,000
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
US Government, Agency & Instrumentality
Obligations--Non-Discount (concluded)
Student Loan $ 10,000 5.48 % 7/13/95 $ 10,000
Marketing 80,750 5.86 8/07/95 80,750
Association++ 43,500 5.86 3/20/96 43,497
10,000 5.73 4/16/96 10,007
5,000 5.69 5/15/96 5,001
25,650 5.66 7/19/96 25,655
125,000 5.78 9/20/96 125,000
23,000 5.885 11/27/96 23,056
60,000 5.87 1/14/97 60,000
US Treasury Notes 75,000 5.625 6/30/97 74,695
Total US Government, Agency &
Instrumentality Obligations--Non-Discount
(Cost--$1,388,831) 1,388,617
<CAPTION>
Face
Amount Issue
Repurchase Agreements--3.7%
<C> <S> <C>
$150,000 Fuji Securities, Inc., purchased on
6/30/1995 to yield 6.25% to 7/03/1995 150,000
105,374 Lehman Government Securities,
Inc., purchased on 6/30/1995 to yield
6.25% to 7/03/1995 105,374
Total Repurchase Agreements
(Cost--$255,374) 255,374
Total Investments (Cost--$6,904,127)--100.8% 6,906,377
Liabilities in Excess of Other Assets--(0.8%) (57,781)
----------
Net Assets--100.0% $6,848,596
==========
<PAGE>
<FN>
*Commercial Paper and certain US Government, Agency &
Instrumentality Obligations are traded on a discount basis; the
interest rates shown are the discount rates paid at the time of
purchase by the Trust. 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 June 30, 1995.
**Repurchase Agreements are fully collateralized by US Government
Obligations.
++Variable Rate Notes.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of June 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$6,904,126,688*) (Note 1a) $ 6,906,377,049
Cash 348,549
Receivables:
Interest $ 23,974,883
Beneficial interest sold 1,812,683 25,787,566
---------------
Prepaid registration fees and other assets (Note 1d) 180,789
---------------
Total assets 6,932,693,953
---------------
Liabilities: Payables:
Securities purchased 39,965,248
Beneficial interest redeemed 38,987,123
Investment adviser (Note 2) 2,001,064
Distributor (Note 2) 1,578,889 82,532,324
---------------
Accrued expenses and other liabilities 1,565,424
---------------
Total liabilities 84,097,748
---------------
Net Assets: Net assets $ 6,848,596,205
===============
<PAGE>
Net Assets Shares of beneficial interest, $.10 par value, unlimited
Consist of: number of shares authorized $ 684,634,574
Paid-in capital in excess of par 6,161,711,270
Unrealized appreciation on investments--net 2,250,361
---------------
Net Assets--Equivalent to $1.00 per share based on 6,846,345,844
shares of beneficial interest outstanding $ 6,848,596,205
===============
<FN>
*Cost for Federal income tax purposes. As of June 30, 1995, net
unrealized appreciation for Federal income tax purposes amounted to
$2,250,361, of which $2,876,879 related to appreciated securities
and $626,518 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months
Ended June 30, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium discount earned $ 201,497,927
(Note 1c):
Expenses: Investment advisory fees (Note 2) $ 11,798,789
Transfer agent fees (Note 2) 6,025,879
Distribution fees (Note 2) 3,711,269
Registration fees (Note 1d) 217,951
Accounting services (Note 2) 189,288
Printing and shareholder reports 120,245
Custodian fees 106,483
Trustees' fees and expenses 68,513
Professional fees 39,230
Other 20,437
---------------
Total expenses 22,298,084
---------------
Investment income--net 179,199,843
---------------
<PAGE>
Realized & Realized gain on investments--net 394,920
Unrealized Gain on Change in unrealized appreciation/depreciation on investments--net 9,742,307
Investments--Net ---------------
(Note 1c): Net Increase in Net Assets Resulting from Operations $ 189,337,070
===============
</TABLE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: June 30, 1995 Dec. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 179,199,843 $ 239,470,922
Realized gain on investments--net 394,920 287,014
Change in unrealized appreciation/depreciation on
investments--net 9,742,307 (7,986,580)
--------------- ---------------
Net increase in net assets resulting from operations 189,337,070 231,771,356
--------------- ---------------
Dividends & Investment income--net (179,199,843) (239,470,922)
Distributions to Realized gain on investments--net (394,920) (287,014)
Shareholders --------------- ---------------
(Note 1e): Net decrease in net assets resulting from dividends and
distributions to shareholders (179,594,763) (239,757,936)
--------------- ---------------
Beneficial Net proceeds from sale of shares 7,603,033,597 12,651,358,878
Interest Net asset value of shares issued to shareholders in
Transactions reinvestment of dividends and distributions (Note 1e) 178,806,583 238,784,788
(Note 3): --------------- ---------------
7,781,840,180 12,890,143,666
Cost of shares redeemed (7,183,982,950) (13,164,347,398)
--------------- ---------------
Net increase in net assets derived from beneficial interest
transactions 597,857,230 (274,203,732)
--------------- ---------------
Net Assets: Total increase in net assets 607,599,537 (282,190,312)
Beginning of period 6,240,996,668 6,523,186,980
--------------- ---------------
End of period $ 6,848,596,205 $ 6,240,996,668
=============== ===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Six
Months Ended For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: June 30, 1995 1994 1993 1992 1991
<S> <S> <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 .0272 .0366 .0272 .0332 .0556
Realized and unrealized gain (loss)
on investments--net .0015 (.0012) .0003 .0009 .0029
---------- ---------- ---------- ---------- ----------
Total from investment operations .0287 .0354 .0275 .0341 .0585
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.0272) (.0366) (.0272) (.0332) (.0556)
Realized gain on investments--net (.0000)++ (.0000)++ (.0005) (.0007) (.0029)**
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.0272) (.0366) (.0277) (.0339) (.0585)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total investment return 5.53%* 3.74% 2.81% 3.44% 6.02%
========== ========== ========== ========== ==========
Ratios to Average Expenses, excluding distribution fees .56%* .53% .53% .52% .50%
Net Assets: ========== ========== ========== ========== ==========
Expenses .68%* .65% .65% .64% .62%
========== ========== ========== ========== ==========
Investment income and realized gain
on investments--net 5.47%* 3.67% 2.78% 3.48% 5.87%**
========== ========== ========== ========== ==========
Supplemental Net assets, end of period
Data: (in thousands) $6,848,596 $6,240,997 $6,523,187 $7,465,869 $9,077,226
========== ========== ========== ========== ==========
<FN>
*Annualized.
**Includes unrealized gain (loss).
++Amount is less than $.0001 per share.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Ready Assets Trust (the "Trust") is registered under
the Investment Company Act of 1940 as a diversified, open-end
management investment company. These unaudited financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal recurring nature.
The following is a summary of significant accounting policies
followed by the Trust.
(a) Valuation of investments--Investments maturing more than sixty
days after the valuation date are valued at the most recent bid
price or yield equivalent as obtained from dealers that make markets
in such securities. When such securities are valued with sixty days
or less to maturity, the difference between the valuation existing
on the sixty-first day before maturity and maturity value is
amortized on a straight-line basis to maturity. Investments maturing
within sixty days from their date of acquisition are valued at
amortized cost, which approximates market value. For 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.
Assets for which market quotations are not readily available are
valued at fair value as determined in good faith by or under the
direction of the Board of Trustees.
(b) Income taxes--It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
its shareholders. Therefore, no Federal income tax provision is
required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
discount) is recognized on the accrual basis. Realized gains and
losses on security transactions are determined on the identified
cost basis.
<PAGE>
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends to shareholders--The Trust declares dividends daily
and reinvests daily such dividends (net of non-resident alien tax
and back-up withholding tax) in additional shares of beneficial
interest at net asset value. Dividends are declared from the total
of net investment income and net realized gain or loss on
investments.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Trust has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P. ("MLAM" or "Adviser"). 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 Trust has also entered into
a Distribution Agreement and a Distribution Plan with Merrill Lynch
Funds Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
MLAM provides the Trust with investment management, research,
statistical, and advisory services, and pays certain other expenses
of the Trust. For such services, the Trust pays a monthly fee based
upon the average daily value of the Trust's net assets at the
following annual rates:
Portion of average daily value of net assets: Rate
Not exceeding $500 million 0.500%
In excess of $500 million but not exceeding $1 billion 0.400
In excess of $1 billion but not exceeding $5 billion 0.350
In excess of $5 billion but not exceeding $10 billion 0.325
In excess of $10 billion but not exceeding $15 billion 0.300
In excess of $15 billion but not exceeding $20 billion 0.275
In excess of $20 billion 0.250
The most restrictive annual expense limitation requires that the
Adviser reimburse the Trust to the extent the Trust's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed 2.5% of the Trust's
first $30 million of average daily net assets, 2.0% of the next $70
million of average daily net assets, and 1.5% of the average daily
net assets in excess thereof. The obligation of the manager to
reimburse the Trust under this limitation is not limited to the
amount of the management fee.
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NOTES TO FINANCIAL STATEMENTS (concluded)
The Trust has adopted a Shareholder Servicing Plan and Agreement in
accordance with Rule 12b-1 under the Investment Company Act of 1940,
pursuant to which Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), a wholly-owned subsidiary of ML & Co., receives a fee
each month from the Trust at the annual rate of 0.125% of average
daily net assets of the accounts of Trust shareholders who maintain
their Trust accounts through MLPF&S. This fee is to compensate
MLPF&S financial consultants and other directly involved branch
office personnel for providing direct personal services to
shareholders. The fee is not compensation for administrative
services.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Trust's transfer agent.
Accounting services are provided to the Trust by MLAM at cost.
Certain officers and/or trustees of the Trust are officers and/or
directors of MLAM, MLFDS, PSI, MLFD, MLPF&S and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the six months
ended June 30, 1995 and the year ended December 31, 1994,
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
OFFICERS AND TRUSTEES
Arthur Zeikel, President and Trustee
Donald Cecil, Trustee
M. Colyer Crum, Trustee
Edward H. Meyer, Trustee
Jack B. Sunderland, Trustee
J. Thomas Touchton, Trustee
Terry K. Glenn, Executive Vice President
Joseph T. Monagle, Jr., Executive Vice President
Donald C. Burke, Vice President
John Ng, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
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Custodian
The Bank of New York
1 Wall Street
New York, New York 10286
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210
