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Previous: MERRILL LYNCH & CO INC, 424B5, 1997-08-14 |
Next: UNITED CAPITAL CORP /DE/, 10-Q, 1997-08-14 |
MERRILL LYNCH
READY ASSETS
TRUST
[FUND LOGO]
STRATEGIC
Performance
Semi-Annual Report
June 30, 1997
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. Statements and other information herein are as dated
and are subject to change.
Merrill Lynch
Ready Assets Trust
Box 9011
Princeton, NJ
08543-9011 #10250 -- 6/97
[RECYCLE LOGO]
Printed on post-consumer recycled paper
Merrill Lynch Ready Assets Trust June 30, 1997
DEAR SHAREHOLDER
For the six-month period ended June 30, 1997, Merrill Lynch Ready Assets
Trust paid shareholders a net annualized dividend of 5.01%*. The Trust's
7-day yield as of June 30, 1997 was 5.06%.
The average portfolio maturity for Merrill Lynch Ready Assets Trust at
June 30, 1997 was 74 days, compared to 75 days at December 31, 1996.
The Environment
Shifting investor perceptions regarding the direction of the US economy
brought continued volatility to the US financial markets during much of
the six-month period ended June 30, 1997. Increasing evidence of
noninflationary economic growth boosted investor confidence, which was
further confirmed shortly after the quarter's close when, as widely
expected, the Federal Reserve Board chose to leave monetary policy
unchanged. This confluence of positive indicators helped produce a
significant rally in the US stock market. A slight decline in interest
rates resulted in a modest positive total return for US fixed-income
investments.
Current consensus expectations are for the US economy's rate of growth
to lose some momentum. Although gross domestic product growth for the
first quarter of the year was revised slightly upward to 5.9%, there are
indications that the second quarter's rate of growth will be lower. At
the same time, inflationary pressures remain contained, supported by the
June employment report showing moderate growth in wages along with a
slight increase in unemployment. It remains to be seen whether economic
activity moderates enough to rule out future Federal Reserve Board
monetary policy tightenings.
The US dollar continued to be strong relative to other currencies. In
Europe, investors are uncertain regarding the viability of economic and
monetary union, while scandals continue to depress investor confidence
in Japan. At present, it appears that the US economy is perceived most
favorably by investors for its ongoing growth and limited inflationary
pressures. If economic data releases continue to support this point of
view, the outlook for the US capital markets should remain positive.
Footnote reads:
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after
all expenses.
Throughout the six-month period ended June 30, 1997, the Trust's
investment outlook reflected a constructive stance, briefly interrupted
by a more cautious approach during March.
The portfolio's composition at the end of the June period and as of our
last report is detailed below:
6/30/97 12/31/96
-------- --------
Bank Notes 4.1% 1.6%
Certificates of Deposit 1.0 1.4
Certificates of Deposit -- European 3.2 3.1
Certificates of Deposit -- Yankee* 7.1 1.8
Commercial Paper-Discount 51.8 51.3
Corporate Notes 6.8 8.6
Funding Agreements 1.1 1.1
Master Notes 2.5 2.5
Repurchase Agreements 1.4 4.8
Time Deposits 1.4 --
US Government, Agency &
Instrumentality Obligations --
Discount 1.9 0.2
US Government, Agency &
Instrumentality Obligations --
Non-Discount 19.0 26.5
Liabilities in Excess of Other Assets (1.3) (2.9)
-------- --------
Total 100.0% 100.0%
======== ========
* 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,
/S/ARTHUR ZEIKEL
Arthur Zeikel
President
/S/JOHN NG
John Ng
Vice President and Portfolio Manager
July 31, 1997
<TABLE>
<CAPTION>
Merrill Lynch Ready Assets Trust June 30, 1997
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
Bank Notes -- 4.1%
Bank of America $25,000 6.04 % 6/10/98 $24,996
N.T. & S.A. 25,000 5.93 6/24/98 24,973
First Bank N.A., 30,000 5.648+ 11/19/97 29,999
Minneapolis 25,000 5.598+ 5/15/98 24,987
KeyBank National 23,000 5.608+ 8/21/97 22,998
Association 25,000 5.60 11/04/97 24,968
28,000 5.53+ 5/06/98 27,988
Morgan Guaranty 45,000 5.615+ 2/19/98 44,985
Trust Company of NY
Northern Trust 15,000 5.96 6/17/98 14,987
Company, 13,000 5.95 6/24/98 12,988
Chicago
Royal Bank of 26,000 5.56+ 6/30/98 25,980
Canada
U.S. National Bank 10,000 5.665+ 4/14/98 9,996
of Oregon ----------
Total Bank Notes
(Cost -- $289,902) 289,845
==========
Certificates of Deposit -- 1.0%
Morgan Guaranty 73,000 5.86 10/03/97 72,979
Trust Company of NY ----------
of Oregon
Total Certificates of Deposit
(Cost -- $73,030) 72,979
==========
Certificates of Deposit -- European -- 3.2%
Abbey National 50,000 5.54 7/24/97 49,992
Treasury Services
PLC
Bank of Scotland 50,000 5.51 8/07/97 49,984
Treasury
Services PLC
Barclays Bank PLC 25,000 6.08 6/15/98 25,002
Bayerische 30,000 5.87 11/19/97 30,008
Landesbank
Girozentrale
National 50,000 5.505 8/06/97 49,984
Australia Bank
Toronto - Dominion 20,000 5.43 8/21/97 19,991
Bank ----------
Total Certificates of Deposit -- European
(Cost -- $225,002) 224,961
==========
Certificates of Deposit -- Yankee -- 7.1%
ABN - AMRO 100,000 5.68 12/22/97 99,860
Bank, NY 20,000 5.65 12/23/97 19,969
Barclays Bank 18,000 5.94 6/30/98 17,981
PLC, NY
Creditanstalt - 58,000 6.02 6/12/98 57,975
Bankverein, NY
Deutsche Bank 25,000 5.80 1/28/98 24,972
AG, NY 25,000 5.63 2/26/98 24,938
15,000 5.95 6/16/98 14,984
Landesbank 25,000 5.78 1/27/98 24,970
Hessen - Thuringen 25,000 6.00 6/09/98 24,984
Girozentrale, NY
Royal Bank of 50,000 5.77 1/27/98 49,936
Canada, NY 25,000 5.95 3/24/98 24,983
20,000 6.05 6/08/98 19,996
25,000 6.04 6/15/98 24,994
Societe 54,000 5.70 8/22/97 54,003
Generale, NY
Westdeutsche 23,000 5.94 6/29/98 22,975
Landesbank ----------
Girozentrale, NY
Total Certificates of Deposit -- Yankee
(Cost -- $507,914) 507,520
==========
Commercial Paper -- Discount -- 51.8%
ABN - AMRO 27,500 5.65 10/15/97 27,040
North America
Finance Inc.
AC Acquisition 29,500 5.61 7/18/97 29,417
Holding Company 60,000 5.63 7/22/97 59,793
Allomon Funding 10,144 5.64 9/04/97 10,039
Corporation
Alpine 50,000 5.57 7/14/97 49,892
Securitization Corp. 30,000 5.58 7/21/97 29,902
American Home 26,130 6.30 7/01/97 26,125
Products Corp.
American Honda 21,000 5.62 7/15/97 20,951
Finance Corp. 20,000 5.60 7/29/97 19,910
20,000 5.59 7/30/97 19,907
25,000 5.64 8/01/97 24,874
13,700 5.65 8/04/97 13,624
Asset Securitization 36,000 5.65 8/04/97 35,802
Cooperative Corp.
Atlantic Asset 24,879 5.58 7/07/97 24,852
Securitization Corp. 25,121 5.58 7/11/97 25,078
BTR Dunlop 9,122 6.25 7/01/97 9,120
Finance Inc.
Bear Stearns 50,000 5.65 7/14/97 49,890
Companies, Inc. 25,000 5.38 7/24/97 24,906
50,000 5.65 7/31/97 49,758
50,000 5.64 8/04/97 49,724
50,000 5.60 9/03/97 49,492
50,000 5.62 10/06/97 49,234
Caterpillar Inc. 54,000 5.60 7/21/97 53,822
Cheltenham & 25,000 5.38 7/24/97 24,906
Gloucester PLC
Chrysler Financial 16,374 5.60 7/11/97 16,346
Corporation
Clipper Receivables 25,000 5.63 7/21/97 24,918
Corp.
Corporate Asset 35,000 5.63 7/09/97 34,950
Funding Co. Inc.
Countrywide Home 35,000 5.66 7/24/97 34,868
Loans, Inc. 50,000 5.67 7/25/97 49,804
Credit Suisse 75,000 5.63 7/22/97 74,741
First Boston Inc. 25,000 5.60 8/29/97 24,766
Delaware Funding 8,966 5.65 7/08/97 8,955
Corp.
Den Danske 50,000 5.64 8/06/97 49,709
Corporation
Eksportfinans A/S 11,280 5.57 7/21/97 11,243
Eureka 19,000 5.62 7/01/97 18,997
Securitization Inc. 25,000 5.58 7/10/97 24,961
25,000 5.63 7/14/97 24,945
11,000 5.60 8/05/97 10,938
Falcon Asset 25,375 5.64 7/23/97 25,283
Securitization
Corp.
Finova Capital 12,450 5.67 7/09/97 12,432
Corp. 60,000 5.45 7/14/97 59,868
24,550 5.69 7/29/97 24,438
30,000 5.63 8/14/97 29,790
20,000 5.64 12/18/97 19,463
Ford Credit 50,000 5.60 8/28/97 49,540
Europe PLC
Ford Motor 75,000 5.54 7/28/97 74,677
Credit Company 95,000 5.66 12/01/97 92,704
GTE Corporation 40,000 5.61 9/11/97 39,543
General Electric 15,000 5.67 11/18/97 14,669
Capital Corp.
General Motors 50,000 5.40 7/09/97 49,929
Acceptance Corp. 50,000 5.45 7/10/97 49,921
50,000 5.41 7/24/97 49,812
45,000 5.40 8/04/97 44,752
50,000 5.43 8/07/97 49,701
47,500 5.72 11/10/97 46,510
20,000 5.74 11/20/97 19,552
37,500 5.73 11/21/97 36,654
Greenwich 20,000 5.65 7/07/97 19,978
Funding 20,000 5.64 7/23/97 19,928
Corporation 13,000 5.62 9/02/97 12,870
Industrial Bank 10,000 5.70 7/10/97 9,984
of Korea 10,000 5.72 8/15/97 9,928
International 40,000 5.61 7/16/97 39,900
Lease Finance Corp.
Internationale 50,000 5.37 7/08/97 49,937
Nederlanden (U.S.)
Funding Corp.
International 16,784 5.65 7/10/97 16,758
Securitization 50,000 5.69 7/11/97 49,913
Corp. 40,000 5.64 7/17/97 39,893
30,000 5.67 7/17/97 29,920
22,086 5.62 7/24/97 22,003
40,000 5.57 7/31/97 39,808
18,000 5.60 8/29/97 17,832
Korea 50,000 5.68 7/25/97 49,804
Development Bank 50,000 5.70 8/11/97 49,669
Lehman Brothers 75,000 5.70 7/18/97 74,788
Holdings, Inc. 25,000 5.68 8/04/97 24,862
Lexington Parker 20,823 5.60 8/18/97 20,664
Capital Corp. 60,569 5.60 8/19/97 60,098
40,000 5.60 8/27/97 39,638
Mont Blanc 10,923 5.57 7/18/97 10,893
Capital Corp. 30,000 5.57 7/29/97 29,865
Morgan Stanley 75,000 5.57 7/23/97 74,729
Group, Inc.
National Fleet 40,000 5.65 7/08/97 39,950
Funding Corp.
New Center 20,000 5.60 7/21/97 19,934
Asset Trust 50,000 5.28 8/18/97 49,618
Nordbanken North 100,000 5.60 8/20/97 99,205
America, Inc.
Old Line 24,507 5.58 7/11/97 24,465
Funding Corp. 30,000 5.58 7/15/97 29,930
20,000 5.60 7/18/97 19,944
16,266 5.60 7/29/97 16,193
23,000 5.58 7/31/97 22,889
11,646 5.65 8/12/97 11,568
Preferred 40,000 5.65 7/25/97 39,843
Receivables
Funding Corp.
RTZ America, Inc. 29,250 5.65 8/11/97 29,057
Rexam PLC 8,000 5.60 7/09/97 7,989
15,000 5.65 7/28/97 14,934
Santander Finance 25,000 5.40 7/23/97 24,910
(Delaware) Inc.
Sears Roebuck 50,000 5.66 7/28/97 49,780
Acceptance
Corporation
Svenska 25,000 5.61 9/02/97 24,750
Handelsbanken, Inc.
TRW Inc. 252 6.25 7/01/97 252
Three Rivers 40,585 5.66 7/17/97 40,477
Funding Corp. 9,415 5.60 8/18/97 9,343
Toshiba America, Inc. 25,000 5.61 7/02/97 24,992
Toshiba
International 19,100 5.65 7/14/97 19,058
Finance (UK) PLC
Twin Towers Inc. 30,000 5.57 7/16/97 29,926
UBS Finance 100,000 6.20 7/01/97 99,983
Delaware Inc.
WCP Funding Inc. 10,000 5.60 8/13/97 9,931
Windmill Funding 29,922 5.60 7/07/97 29,889
Corp. 20,122 5.60 7/11/97 20,087
50,000 5.68 7/28/97 49,780
28,529 5.65 8/12/97 28,338
Total Commercial Paper -- Discount ----------
(Cost -- $3,678,173) 3,678,114
==========
Corporate Notes -- 6.8%
Abbey National 50,000 5.59+ 2/25/98 49,975
Treasury Services 50,000 5.65+ 4/15/98 49,981
PLC 50,000 5.51+ 6/09/98 49,969
Asset-Backed 68,000 5.688+ 10/15/97 68,000
Securities Invest-
ment Trust 1996-M
Bank of Scotland 13,000 5.95 6/18/98 12,992
Treasury
Services PLC
Bear Stearns 15,000 5.938+ 8/07/97 15,004
Companies, Inc. 15,000 6.15 10/17/97 15,011
Chase Manhattan 4,392 5.489 1/15/98 4,390
Auto Owner
Trust 1996-C
Credit Suisse 33,000 5.62+ 5/22/98 33,000
First Boston Inc.
LABS Trust - 74,189 5.688+ 12/29/97 74,189
Series 1996-C
Senior Notes
Premier Auto 11,172 5.477 12/08/97 11,160
Trust 1997-1
SMM Trust 1997-Q 100,000 5.688+ 1/15/98 99,999
----------
Total Corporate Notes (Cost -- $483,684) 483,670
==========
Funding Agreements -- 1.1%
Jackson National 80,000 5.72+ 5/01/98 80,000
Life Insurance Co. ----------
Total Funding Agreements (Cost -- $80,000) 80,000
==========
Master Notes -- 2.5%
Goldman Sachs 150,000 5.60+ 8/01/97 150,000
Group, L.P. 26,000 5.60+ 1/13/98 26,000
Life Insurance Co. ----------
Total Master Notes (Cost -- $176,000) 176,000
==========
Time Deposits -- 1.4%
Westdeutsche 100,000 6.25 7/01/97 100,000
Landesbank ----------
Life Insurance Co.
Girozentrale
Total Time Deposits (Cost -- $100,000) 100,000
==========
US Government, Agency & Instrumentality
Obligations -- Discount -- 1.9%
Federal Home 28,000 5.29 12/11/97 27,301
Loan Banks
Federal Home 20,292 5.23 2/13/98 19,588
Loan Mortgage Corp.
Federal National 4,000 5.59 10/14/97 3,936
Mortgage
Association
US Treasury Bills 38,000 5.493 12/11/97 37,505
25,000 5.505 12/11/97 24,675
7,500 5.195 3/05/98 7,229
7,500 5.213 3/05/98 7,229
US Treasury 5,000 5.252 2/15/98 4,829
STRIPS++ ----------
Total US Government, Agency & Instrumentality
Obligations -- Discount (Cost -- $132,298) 132,292
==========
US Government, Agency & Instrumentality
Obligations -- Non-Discount -- 19.0%
Federal Farm 45,000 5.85 10/01/97 45,023
Credit Banks 10,000 5.81 12/04/98 9,926
Federal Home 80,000 5.26+ 12/10/97 79,983
Loan Banks 26,000 5.85+ 1/26/98 26,016
25,000 5.80 6/12/98 24,980
28,000 5.90 6/19/98 27,989
15,000 6.17 11/06/98 14,958
10,000 6.12 11/19/98 9,964
25,000 6.26 1/22/99 24,900
5,000 6.355 6/11/99 4,999
Federal Home 6,000 6.205 6/30/99 5,991
Loan Mortgage
Corp.
Federal National 114,000 5.25+ 7/16/97 113,997
Mortgage 54,000 5.27+ 8/01/97 53,998
Association 44,000 5.255+ 9/03/97 43,994
34,000 5.26+ 9/09/97 33,995
32,000 5.20+ 9/29/97 31,995
20,000 5.53 10/14/97 19,982
58,000 5.245+ 10/20/97 57,984
50,000 5.47 12/30/97 49,920
51,000 5.57+ 3/26/98 50,978
66,000 5.27+ 3/27/98 65,967
50,000 5.31+ 4/24/98 49,984
33,000 6.00+ 5/14/98 33,000
Federal National 29,000 5.56+ 5/21/98 28,982
Mortgage 45,000 5.56+ 5/22/98 44,973
Association 25,000 6.54 9/11/98 25,045
10,000 5.81 11/25/98 9,977
10,000 5.81 12/01/98 9,939
14,930 5.40 12/30/98 14,722
15,000 6.50 4/30/99 14,976
15,000 6.375 5/21/99 15,006
11,000 6.11 6/22/99 10,988
40,000 5.25+ 7/14/99 39,864
Student Loan 50,000 5.32+ 8/04/97 49,999
Marketing 60,000 5.20+ 10/01/97 59,991
Association 12,000 6.02 11/20/98 11,951
15,000 5.80 12/18/98 14,858
US Treasury Notes 73,500 5.25 12/31/97 73,408
27,000 5.00 1/31/98 26,899
10,000 5.875 1/31/99 9,977
5,000 6.25 5/31/99 5,058
Total US Government, Agency & Instrumentality ----------
Obligations -- Non-Discount (Cost -- $1,347,869) 1,347,136
==========
<CAPTION>
Face
Amount Issue
<S> <C> <C>
Repurchase Agreements** -- 1.4%
$100,000 Fuji Securities, Inc., purchased on 6/30/1997 to yield 6.10%
to 7/01/1997 100,000
----------
Total Repurchase Agreements (Cost -- $100,000) 100,000
==========
Total Investments (Cost -- $7,193,872) -- 101.3% 7,192,517
Liabilities in Excess of Other Assets -- (1.3%) (89,163)
----------
Net Assets -- 100.0% $7,103,354
==========
* 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; interest rates shown are
the rates in effect at June 30, 1997.
** Repurchase Agreements are fully collateralized by US Government Obligations.
+ Variable Rate Notes.
++ Separate Traded Registered Interest and Principal of Securities (STRIPS).
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL INFORMATION
Statement of Assets and Liabilities as of June 30, 1997
<S> <C> <C> <C>
Assets: Investments, at value (identified cost -- $7,193,871,539*) (Note 1a) $7,192,517,210
Receivables:
Interest $30,635,534
Securities sold 27,621,294
Beneficial interest sold 1,111,562 59,368,390
----------------
Prepaid registration fees and other assets (Note 1d) 213,783
----------------
Total assets 7,252,099,383
----------------
Liabilities: Payables:
Securities purchased 89,736,743
Beneficial interest redeemed 52,174,577
Investment adviser (Note 2) 2,168,032
Distributor (Note 2) 1,847,282 145,926,634
----------------
Accrued expenses and other liabilities 2,818,600
----------------
Total liabilities 148,745,234
----------------
Net Assets: Net assets $7,103,354,149
================
Net Assets Shares of beneficial interest, $.10 par value, unlimited number of
Consist of: shares authorized $710,470,848
Paid-in capital in excess of par 6,394,237,630
Unrealized depreciation on investments -- net (1,354,329)
----------------
Net Assets -- Equivalent to $1.00 per share based on 7,104,708,478
shares of beneficial interest outstanding $7,103,354,149
================
* Cost for Federal income tax purposes. As of June 30, 1997, net
unrealized depreciation for Federal income tax purposes amounted
to $1,354,329, of which $225,517 related to appreciated
securities and $1,579,846 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months Ended
June 30, 1997
<S> <C> <C> <C>
Investment Income Interest and amortization of premium and discount earned $202,893,475
(Note 1c):
Expenses: Investment advisory fees (Note 2) $12,856,217
Transfer agent fees (Note 2) 5,871,984
Distribution fees (Note 2) 4,204,984
Interest expense 241,132
Registration fees (Note 1d) 229,376
Accounting services (Note 2) 197,364
Printing and shareholder reports 163,988
Custodian fees 118,773
Trustees' fees and expenses 71,394
Professional fees 40,949
Other 48,334
--------------
Total expenses 24,044,495
--------------
Investment income -- net 178,848,980
--------------
Realized & Realized gain on investments -- net 66,734
Unrealized Gain Change in unrealized depreciation on investments -- net (896,268)
(Loss) on --------------
Investments -- Net Net Increase in Net Assets Resulting from Operations $178,019,446
(Note 1c): ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
June 30, December 31,
Increase (Decrease) in Net Assets: 1997 1996
<S> <C> <C> <C>
Operations: Investment income -- net $178,848,980 $360,356,362
Realized gain on investments -- net 66,734 559,269
Change in unrealized appreciation/depreciation on investments --
net (896,268) (2,689,938)
--------------- ---------------
Net increase in net assets resulting from operations 178,019,446 358,225,693
--------------- ---------------
Dividends & Investment income -- net (178,848,980) (360,356,362)
Distributions to Realized gain on investments -- net (66,734) (559,269)
Shareholders --------------- ---------------
(Note 1e):
Net decrease in net assets resulting from dividends and
distributions to shareholders (178,915,714) (360,915,631)
--------------- ---------------
Beneficial Interest Net proceeds from sale of shares 6,982,774,077 13,961,575,969
Transactions Net asset value of shares issued to shareholders in reinvestment
(Note 3): of dividends and distributions (Note 1e) 178,184,308 359,459,266
--------------- ---------------
7,160,958,385 14,321,035,235
Cost of shares redeemed (7,152,968,085) (14,301,439,885)
--------------- ---------------
Net increase in net assets derived from beneficial interest
transactions 7,990,300 19,595,350
--------------- ---------------
Net Assets: Total increase in net assets 7,094,032 16,905,412
Beginning of period 7,096,260,117 7,079,354,705
--------------- ---------------
End of period $7,103,354,149 $7,096,260,117
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
June 30, For the Year Ended December 31,
1997 1996 1995 1994 1993
Increase (Decrease) in Net Asset Value:
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of
Operating period $1.00 $1.00 $1.00 $1.00 $1.00
Performance: ---------- ---------- ---------- ---------- ----------
Investment income -- net .0246 .0491 .0538 .0366 .0272
Realized and unrealized gain
(loss) on investments -- net (.0001) (.0003) .0016 (.0012) .0003
---------- ---------- ---------- ---------- ----------
Total from investment operations .0245 .0488 .0554 .0354 .0275
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income -- net (.0246) (.0491) (.0538) (.0366) (.0272)
Realized gain on investments --
net --+ (.0001) (.0001) --+ (.0005)
---------- ---------- ---------- ---------- ----------
Total dividends and
distributions (.0246) (.0492) (.0539) (.0366) (.0277)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ==========
Total investment return 5.01%* 5.05% 5.53% 3.73% 2.81%
========== ========== ========== ========== ==========
Ratios to Average Expenses .67%* .64% .67% .65% .65%
Net Assets: ========== ========== ========== ========== ==========
Investment income and realized
gain (loss) on investments --
net 4.95%* 4.88% 5.40% 3.67% 2.78%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period
Data: (in thousands) $7,103,354 $7,096,260 $7,079,355 $6,240,997 $6,523,187
========== ========== ========== ========== ==========
* Annualized.
+ Amount is less than $.0001 per share.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust June 30, 1997
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.
(d) Prepaid registration fees -- Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions 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 net
investment income and distributions from 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"). 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 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 and 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, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the six months ended
June 30, 1997 and the year ended December 31, 1996 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., Senior Vice President
Donald C. Burke, Vice President
John Ng, Vice President
Gerald M. Richard, Treasurer
Thomas D. Jones III, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th floor
New York, NY 10286
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210
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