MERRILL LYNCH
READY ASSETS
TRUST
FUND LOGO
Semi-Annual Report
June 30, 1998
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
Printed on post-consumer recycled paper
Merrill Lynch Ready Assets Trust
June 30, 1998
DEAR SHAREHOLDER
For the six-month period ended June 30, 1998, Merrill Lynch Ready
Assets Trust paid shareholders a net annualized dividend of 5.16%*.
The Trust's 7-day yield as of June 30, 1998 was 5.11%.
The average portfolio maturity for Merrill Lynch Ready Assets Trust
at June 30, 1998 was 76 days, compared to 69 days at December 31,
1997.
The Environment
Increasing volatility characterized the capital markets during the
six-month period ended June 30, 1998. At times, US stock and bond
prices reflected expectations that the slowdown in Asian economic
growth would impact US exports and the US trade deficit and slow
overall US business activity. The deterioration of economic
conditions in Japan was of particular concern, and caused a sharp
drop in the yen's value relative to the US dollar. During other
periods, US investors appeared to expect that the positive trends of
a moderately expanding economy, declining unemployment, enhanced
productivity and corporate profits growth would continue, unimpeded
by developments in Asia. To date, there have been some signs that
Asia's troubles are influencing US economic activity--such as a
surge in the accumulation of inventories--even as domestic demand
has remained strong. In Europe, the major event was the greater
progress toward achieving European Monetary Union, although there
were concerns that interest rates may have to be increased,
especially in the United Kingdom, to curtail potential inflationary
pressures.
As we move into the second half of 1998, it is likely that investor
focus will remain on developments in Asia. The US Federal Reserve
Board has kept monetary policy on hold as the Asian financial crisis
deepened, which has benefited US bond and stock prices. Anticipating
a steady monetary policy, we maintained a constructive approach to
the market during the six months ended June 30, 1998. Looking ahead,
if there is continued evidence of noninflationary economic growth,
it should have a positive influence on US capital 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.
The portfolio's composition at the end of the June period and as of
our last report is detailed below:
6/30/98 12/31/97
Bank Notes 9.6% 9.4%
Certificates of Deposit 1.3 0.3
Certificates of Deposit--European 0.8 1.1
Certificates of Deposit--Yankee* 15.5 12.5
Commercial Paper 40.3 48.0
Corporate Notes 9.8 9.2
Funding Agreements 1.1 1.2
Master Notes 4.2 4.3
Repurchase Agreements -- 3.6
Time Deposits 0.4 --
US Government, Agency &
Instrumentality Obligations--
Discount 3.5 1.7
US Government, Agency &
Instrumentality Obligations--
Non-Discount 14.2 9.0
Liabilities in Excess of Other Assets (0.7) (0.3)
------ ------
Total 100.0% 100.0%
====== ======
[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
(Donaldo S. Benito)
Donaldo S. Benito
Vice President and Portfolio Manager
July 27, 1998
We are pleased to announce that Donaldo S. Benito is responsible for
the day-to-day management of Merrill Lynch Ready Assets Trust. He
has been Vice President of Merrill Lynch Asset Management, L.P.
since 1986.
Merrill Lynch Ready Assets Trust
June 30, 1998
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Bank Notes--9.6%
American Express $ 50,000 5.616++% 12/11/98 $ 50,000
Centurion Bank 20,000 5.616++ 2/12/99 20,000
20,000 5.598++ 3/19/99 20,000
Comerica Bank, 40,000 5.566++ 2/02/99 39,991
Detroit
FCC National Bank 20,000 5.65 3/03/99 19,973
First National Bank 10,000 5.52 2/16/99 9,978
of Chicago 10,000 5.55++ 2/23/99 9,996
10,000 5.63 3/16/99 9,985
First Tennessee 20,000 5.575++ 2/08/99 19,994
Bank N.A 10,000 5.82 4/30/99 10,000
15,000 5.548++ 6/09/99 14,991
Huntington 9,000 5.546++ 1/20/99 8,998
National Bank 20,000 5.546++ 1/22/99 19,994
10,000 5.60 1/29/99 9,984
KeyBank N.A. 51,500 5.69++ 8/20/98 51,495
50,000 5.69++ 8/28/98 49,995
100,000 5.655++ 11/27/98 99,990
LaSalle National 25,000 5.56 2/10/99 24,953
Bank
PNC Bank N.A. 131,900 5.60++ 10/01/98 131,877
15,000 5.57++ 1/29/99 14,994
SouthTrust Bank N.A. 25,000 5.55++ 6/01/99 24,984
SunTrust Bank, 20,000 5.80 7/24/98 19,999
Atlanta
Total Bank Notes
(Cost--$682,262) 682,171
Certificates of Deposit--1.3%
Chase Manhattan 20,000 5.87 7/21/98 20,000
Bank USA N.A. 20,000 5.70 7/02/99 19,981
National City Bank, 25,000 5.546 2/05/99 24,993
Indiana
NationsBank N.A. 25,000 5.55 2/09/99 24,950
Total Certificates of Deposit
(Cost--$89,973) 89,924
Certificates of Deposit--European--0.8%
Lloyds Bank PLC 25,000 5.90 8/18/98 24,999
Westdeutsche 30,000 5.83 8/03/98 29,999
Landesbank
Girozentrale, London
Total Certificates of Deposit--European
(Cost--$55,002) 54,998
Certificates of Deposit--Yankee--15.5%
ABN-AMRO Bank, 20,000 5.77 7/28/98 19,998
N.V., NY 25,000 5.71 10/09/98 24,984
10,000 5.69 3/05/99 9,988
Merrill Lynch Ready Assets Trust
June 30, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Certificates of Deposit--Yankee (concluded)
Bank of Montreal, $ 10,000 5.69 % 6/15/99 $ 9,990
Chicago
Bank of Scotland 20,000 5.75 5/07/99 19,987
Treasury Services
PLC, NY
Barclays Bank 40,000 5.86 8/18/98 39,995
PLC, NY 10,000 5.56 2/25/99 9,980
15,000 5.645 3/02/99 14,978
25,000 5.53 6/01/99 24,980
20,000 5.516 6/04/99 19,985
Bayerische 40,000 5.835 9/29/98 39,988
Hypotheken-und 30,000 5.665 3/29/99 29,961
Wechsel Bank, NY
Bayerische 50,000 5.85 7/10/98 50,000
Landesbank 20,000 5.72 5/06/99 19,982
Girozentrale, NY 35,000 5.553 6/30/99 34,974
Bayerische 50,000 5.89 9/15/98 49,992
Vereinsbank AG, NY 25,000 5.70 10/06/98 24,984
Canadian Imperial 25,000 5.79 10/06/98 24,990
Bank of 30,000 5.55 2/10/99 29,939
Commerce, NY 15,000 5.71 6/21/99 14,989
Credit Suisse First 35,000 5.705 12/11/98 35,000
Boston, NY 33,000 5.58 5/12/99 33,000
Deutsche Bank 25,000 5.935 9/15/98 24,998
AG, NY 10,000 5.62 2/26/99 9,984
20,000 5.695 3/30/99 19,978
15,000 5.72 4/16/99 14,987
20,000 5.71 4/23/99 19,982
25,000 5.70 6/07/99 24,977
National Westminster 40,000 5.54 7/29/98 39,995
Bank PLC, NY
Norddeutsche 40,000 5.556 2/02/99 39,989
Landesbank
Girozentrale, NY
Rabobank Nederland, 20,000 5.71 5/05/99 19,980
N.V., NY 20,000 5.71 5/21/99 19,982
Royal Bank of Canada, 16,100 5.79 8/20/98 16,096
NY 25,000 5.80 10/06/98 24,990
25,000 5.68 3/29/99 24,970
Svenska 20,000 5.59 7/01/98 20,000
Handelsbanken, NY
Swiss Bank Corp., NY 20,000 5.95 7/02/98 20,000
38,000 5.84 7/17/98 37,999
50,000 5.85 7/17/98 50,000
26,000 5.85 8/26/98 25,996
25,000 5.74 6/09/99 24,987
15,000 5.74 6/11/99 14,992
Toronto-Dominion 25,000 5.70 6/15/99 24,978
Bank, NY
Total Certificates of Deposit--Yankee
(Cost--$1,102,850) 1,102,524
Merrill Lynch Ready Assets Trust
June 30, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper--40.3%
Alpine $ 25,000 5.54 % 7/21/98 $ 24,919
Securitization Corp. 10,000 5.53 7/22/98 9,966
18,000 5.53 7/23/98 17,936
30,000 5.52 8/11/98 29,806
20,000 5.52 8/19/98 19,844
American Honda 20,000 5.52 7/30/98 19,907
Finance Corp. 23,735 5.52 8/20/98 23,547
6,000 5.52 8/27/98 5,946
Amsterdam Funding 12,083 5.53 7/06/98 12,072
Corp. 9,513 5.55 7/17/98 9,488
10,000 5.55 8/14/98 9,931
20,000 5.53 8/17/98 19,851
Apreco Inc. 37,869 5.54 8/12/98 37,618
12,131 5.54 8/17/98 12,040
25,000 5.55 9/23/98 24,669
Bear Stearns 25,000 5.50 7/08/98 24,969
Companies, Inc.
Block Financial Corp. 15,000 5.52 7/30/98 14,931
CXC Inc. 20,000 5.52 7/09/98 19,972
20,000 5.53 7/21/98 19,935
Centric Capital Corp. 13,000 5.55 8/13/98 12,912
Concord Minutemen 25,000 5.56 7/06/98 24,977
Capital Co. LLC
Corporate Asset 40,000 5.52 8/11/98 39,741
Funding Co., Inc.
Countrywide Home 30,000 5.52 8/25/98 29,739
Loans, Inc. 25,000 5.56 8/25/98 24,782
10,000 5.55 9/01/98 9,902
12,000 5.53 9/08/98 11,869
Credit Suisse First 12,000 5.51 7/23/98 11,957
Boston Inc. 5,000 5.51 8/06/98 4,971
10,000 5.52 8/24/98 9,914
Den Norske Bank ASA 30,000 5.49 7/07/98 29,968
20,000 5.49 7/08/98 19,975
Edison Asset 8,400 5.55 7/06/98 8,392
Securitization, LLC 35,000 5.52 7/15/98 34,919
20,000 5.53 7/16/98 19,951
25,000 5.52 7/29/98 24,888
18,000 5.52 8/24/98 17,846
15,000 5.52 8/28/98 14,862
18,246 5.52 8/31/98 18,068
30,000 5.53 9/04/98 29,692
Eureka 9,000 5.51 7/13/98 8,982
Securitization Inc. 20,000 5.53 7/14/98 19,957
25,000 5.52 7/31/98 24,881
15,000 5.52 8/20/98 14,881
25,000 5.52 8/27/98 24,774
Falcon Asset 26,000 5.55 8/21/98 25,792
Securitization Corp.
Finova Capital Corp. 20,000 5.50 7/09/98 19,972
Merrill Lynch Ready Assets Trust
June 30, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (continued)
Finova Capital Corp. $ 15,000 5.50 % 7/13/98 $ 14,970
(concluded) 15,000 5.53 7/16/98 14,963
25,000 5.50 8/04/98 24,865
17,000 5.53 8/05/98 16,906
25,000 5.52 8/24/98 24,786
10,000 5.53 8/24/98 9,914
20,400 5.55 9/21/98 20,136
10,000 5.55 9/23/98 9,868
17,600 5.53 10/23/98 17,287
Ford Credit Europe 25,000 5.52 7/03/98 24,988
PLC 25,000 5.50 7/10/98 24,961
General Electric 20,000 5.47 3/09/99 19,227
Capital Corp.
Greenwich Funding 15,000 5.50 7/15/98 14,965
Corporation 19,200 5.49 7/17/98 19,150
20,000 5.53 9/15/98 19,760
20,000 5.54 9/21/98 19,742
20,288 5.55 9/25/98 20,013
36,167 5.56 9/25/98 35,678
International 17,407 5.53 8/17/98 17,277
Securitization 20,000 5.52 8/25/98 19,826
Corporation
Lehman Brothers 25,000 5.55 7/06/98 24,977
Holdings, Inc. 40,600 5.50 7/07/98 40,556
35,000 5.52 7/14/98 34,924
30,000 5.52 7/15/98 29,931
20,000 5.52 7/22/98 19,932
40,000 5.57 8/17/98 39,701
30,000 5.54 9/16/98 29,636
25,000 5.54 9/22/98 24,673
25,000 5.54 9/23/98 24,669
20,000 5.65 10/16/98 20,000
55,000 5.54 12/21/98 53,522
Lexington Parker 22,497 5.53 7/10/98 22,463
Capital Co. LLC 20,000 5.54 7/16/98 19,951
39,739 5.49 7/21/98 39,610
11,000 5.53 7/24/98 10,959
20,000 5.52 7/28/98 19,914
20,000 5.52 8/18/98 19,848
20,000 5.52 8/26/98 19,823
33,414 5.52 9/01/98 33,087
20,000 5.52 9/04/98 19,795
11,135 5.52 9/11/98 11,009
Monsanto Company 41,920 5.52 8/07/98 41,676
Mont Blanc Capital 20,000 5.54 7/16/98 19,951
Corp. 35,000 5.52 8/07/98 34,796
15,000 5.56 9/04/98 14,846
Monte Rosa Capital 25,000 5.54 7/30/98 24,885
Corp. 20,000 5.58 8/27/98 19,820
20,000 5.53 9/02/98 19,801
25,000 5.55 9/16/98 24,697
Morgan Stanley 10,400 5.616 2/08/99 10,400
Dean Witter
Merrill Lynch Ready Assets Trust
June 30, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (concluded)
Newell Co. $ 20,000 5.53 % 7/06/98 $ 19,982
Old Line Funding 10,000 5.54 7/01/98 9,998
Corp. 20,000 5.52 7/02/98 19,994
10,347 5.53 7/02/98 10,344
8,375 5.54 7/07/98 8,366
20,000 5.54 7/24/98 19,926
Park Avenue 20,000 5.54 7/10/98 19,969
Receivables Corp. 15,796 5.55 7/10/98 15,772
22,455 5.52 7/14/98 22,407
28,614 5.54 7/22/98 28,517
25,000 5.53 8/11/98 24,839
Republic Industries 10,000 5.52 7/08/98 9,988
Funding Corp.
Rexam PLC 25,000 5.53 7/22/98 24,915
Riverwoods Funding 30,000 5.48 7/09/98 29,958
Corp. 20,000 5.52 7/24/98 19,926
Salomon Smith 35,000 5.48 7/17/98 34,908
Barney Holdings Inc. 30,000 5.52 8/06/98 29,829
25,000 5.47 2/17/99 24,107
Societe 25,000 5.48 7/07/98 24,973
Generale N.A
Svenska 30,000 5.52 7/13/98 29,940
Handelsbanken, Inc.
Three Rivers 20,284 5.50 7/17/98 20,231
Funding Corp.
Transamerica 10,000 5.52 7/29/98 9,955
Finance Corp.
Twin Towers Inc. 85,000 5.49 7/13/98 84,830
12,250 5.53 7/27/98 12,199
Vattenfall Treasury 20,000 5.54 7/06/98 19,982
Inc.
WCP Funding Inc. 25,000 5.50 7/16/98 24,938
15,000 5.52 8/27/98 14,865
Windmill Funding 40,000 6.30 7/01/98 39,993
Corp. 25,000 5.49 7/09/98 24,965
9,805 5.50 7/13/98 9,785
12,283 5.52 7/15/98 12,255
5,000 5.50 7/17/98 4,987
40,000 5.54 7/17/98 39,895
5,578 5.54 7/20/98 5,561
11,813 5.54 7/24/98 11,769
35,000 5.52 8/13/98 34,763
Total Commercial Paper
(Cost--$2,854,826 ) 2,854,676
Merrill Lynch Ready Assets Trust
June 30, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Corporate Notes--9.8%
Abbey National $ 20,000 5.50 % 2/05/99 $ 19,962
Treasury Services 35,000 5.536 2/17/99 34,987
PLC 25,000 5.72 6/11/99 24,978
CIT Group 15,000 6.35 7/31/98 15,005
Holdings, Inc. 14,500 5.58 8/17/98 14,498
36,200 5.59 9/30/98 36,192
18,000 5.57 3/22/99 17,994
20,000 5.55 5/24/99 19,988
25,000 5.54 6/28/99 24,980
Chase Manhattan 4,931 5.549 3/12/99 4,929
Auto Owner
Trust 1998-A
Chase Manhattan 37,800 5.598 3/25/99 37,781
Corp.
Credit Suisse 15,000 5.58 4/20/99 15,000
First Boston Inc.
Ford Credit Auto 15,258 5.545 2/16/99 15,229
Owner Trust 1998-A
General Electric 23,000 5.57 6/03/99 22,990
Capital Corp. 20,000 5.553 6/04/99 19,989
General Motors 20,000 5.58 7/06/99 19,990
Acceptance Corp. 20,000 5.75 7/06/99 19,991
21,000 5.721 2/27/01 20,978
Goldman Sachs 10,000 5.68 3/26/99 10,002
Group L.P. 16,000 5.656 7/13/99 16,002
IBM Credit Corp. 10,000 5.868 8/13/98 10,001
70,000 5.635 11/23/98 69,988
LABS Trust-- 46,312 5.656++ 12/28/98 46,312
Series 1996-4
Senior Notes
LABS Trust-- 34,286 5.656++ 10/21/98 34,285
Series 1997-6
Senior Notes
LABS Trust-- 28,506 5.656++ 12/22/98 28,506
Series 1997-7
Senior Notes
Morgan Stanley 50,000 5.616 9/14/98 50,000
Dean Witter 13,000 5.606 1/15/99 13,000
Premier Auto 7,768 5.545 11/06/98 7,763
Trust 1998-1
Premier Auto 25,449 5.62 2/08/99 25,449
Trust 1998-3
Total Corporate Notes
(Cost--$696,871) 696,769
Merrill Lynch Ready Assets Trust
June 30, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Funding Agreements--1.1%
Jackson National $ 80,000 5.672++% 5/03/99 $ 80,000
Life Insurance Co.
Total Funding Agreements (Cost--$80,000) 80,000
Master Notes--4.2%
Goldman Sachs 75,000 5.596++ 1/20/99 75,000
Group, L.P. 75,000 5.652++ 1/20/99 75,000
150,000 5.596++ 2/22/99 150,000
Total Master Notes (Cost--$300,000) 300,000
Time Deposits--0.4%
Barclays Bank PLC 29,542 6.00 7/01/98 29,542
Total Time Deposits (Cost--$29,542) 29,542
US Government, Agency & Instrumentality
Obligations--Discount--3.5%
Federal National 40,000 5.35 7/10/98 39,940
Mortgage 15,000 5.36 9/08/98 14,841
Association 15,000 5.36 10/13/98 14,762
13,000 5.36 10/16/98 12,788
20,000 5.31 10/21/98 19,659
30,000 5.33 10/27/98 29,462
3,000 5.22 2/26/99 2,893
21,875 5.20 3/04/99 21,077
29,000 5.25 3/22/99 27,864
US Treasury Bills 30,000 4.96 10/01/98 29,613
35,000 5.03 10/15/98 34,478
Total US Government, Agency & Instrumentality
Obligations--Discount (Cost--$247,442) 247,377
US Government, Agency & Instrumentality
Obligations--Non-Discount--14.2%
Federal Home Loan 20,000 5.578++ 3/26/99 19,993
Banks 100,000 5.557++ 4/01/99 99,962
20,000 5.99 8/11/99 19,998
10,000 5.67 1/20/00 9,984
20,000 5.855 1/20/00 19,986
15,000 5.77 1/27/00 14,981
10,000 5.75 1/28/00 9,985
20,000 5.75 3/02/00 19,962
10,000 5.75 3/16/00 9,981
Merrill Lynch Ready Assets Trust
June 30, 1998
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
US Government, Agency & Instrumentality
Obligations--Non-Discount (concluded)
Federal Home Loan $ 10,000 5.865 % 3/17/00 $ 9,991
Banks (concluded)
Federal Home 10,000 5.72 7/07/98 10,000
Loan Mortgage 30,000 5.685 8/21/98 30,000
Corp. 40,000 5.605 3/12/99 40,004
10,000 5.88 4/07/00 9,989
25,000 5.875 5/19/00 25,008
Federal National 15,000 5.32 7/01/98 15,000
Mortgage 25,000 5.68 7/31/98 24,999
Association 10,000 5.37 8/12/98 9,996
20,000 5.68 10/23/98 20,002
14,930 5.40 12/30/98 14,911
50,000 5.512++ 1/21/99 49,986
10,000 5.40 2/02/99 9,988
10,000 5.38 2/12/99 9,986
75,000 5.512++ 3/03/99 74,979
25,000 5.592++ 4/09/99 24,990
40,000 5.328++ 7/14/99 39,930
15,000 5.95 8/05/99 14,997
8,900 5.88 8/10/99 8,897
20,000 5.60 1/12/00 19,964
Student Loan 7,500 5.60 8/11/98 7,499
Marketing 35,000 5.602++ 11/25/98 34,996
Association 15,000 5.80 12/18/98 15,011
15,000 5.40 2/10/99 14,981
15,000 4.50 8/02/99 14,817
55,000 5.522++ 1/12/00 54,984
50,000 5.547++ 2/02/00 49,981
42,000 5.567++ 2/04/00 41,984
US Treasury Notes 6,450 4.75 9/30/98 6,442
40,000 6.375 1/15/99 40,200
15,000 6.375 7/15/99 15,127
5,000 5.625 12/31/99 5,005
5,000 5.375 1/31/00 4,991
10,000 5.50 5/31/00 9,994
Total US Government, Agency & Instrumentality
Obligations--Non-Discount (Cost--$1,004,507) 1,004,461
Total Investments (Cost--$7,143,275)--100.7% 7,142,442
Liabilities in Excess of Other Assets--(0.7%) (52,178)
----------
Net Assets--100.0% $7,090,264
==========
[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;
interest rates shown are the rates in effect at June 30, 1998.
++Variable Rate Notes.
See Notes to Financial Statements.
Merrill Lynch Ready Assets Trust
June 30, 1998
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of June 30, 1998
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$7,143,274,558*)
(Note 1a) $ 7,142,441,943
Receivables:
Interest $ 61,283,327
Beneficial interest sold 1,352,515
Securities sold 566,489 63,202,331
---------------
Prepaid registration fees and other assets
(Note 1e) 174,291
---------------
Total assets 7,205,818,565
---------------
Liabilities: Payables:
Securities purchased 59,967,182
Beneficial interest redeemed 49,563,101
Investment adviser (Note 2) 2,229,954
Distributor (Note 2) 1,529,869
Dividends to shareholders (Note 1f) 435 113,290,541
---------------
Accrued expenses and other liabilities 2,264,443
---------------
Total liabilities 115,554,984
---------------
Net Assets: Net assets $ 7,090,263,581
===============
Net Assets Shares of beneficial interest, $.10 par value, unlimited
Consist of: number of shares authorized $ 709,109,620
Paid-in capital in excess of par 6,381,986,576
Unrealized depreciation on investments--net (832,615)
---------------
Net Assets--Equivalent to $1.00 per share based on
7,091,096,196 shares of beneficial interest
outstanding $ 7,090,263,581
===============
<FN>
*Cost for Federal income tax purposes. As of June 30, 1998, net un-
realized depreciation for Federal income tax purposes amounted to
$832,615, of which $140,764 related to appreciated securities and
$973,379 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1998
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
June 30, 1998
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 205,175,239
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 12,751,570
Transfer agent fees (Note 2) 5,393,805
Distribution fees (Note 2) 4,071,205
Accounting services (Note 2) 184,810
Registration fees (Note 1e) 121,080
Printing and shareholder reports 108,288
Custodian fees 108,253
Trustees' fees and expenses 82,089
Professional fees 49,090
Interest expense 8,875
Other 31,693
---------------
Total expenses 22,910,758
---------------
Investment income--net 182,264,481
---------------
Realized & Realized gain on investments--net 229,125
Unrealized Change in unrealized depreciation on investments--net (703,633)
Gain (Loss) on ---------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 181,789,973
(Note 1d): ===============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1998
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
June 30, December 31,
Increase (Decrease) in Net Assets: 1998 1997
<S> <S> <C> <C>
Operations: Investment income--net $ 182,264,481 $ 365,158,348
Realized gain on investments--net 229,125 175,283
Change in unrealized appreciation/depreciation on
investments--net (703,633) 329,079
--------------- ---------------
Net increase in net assets resulting from operations 181,789,973 365,662,710
--------------- ---------------
Dividends & Investment income--net (182,264,481) (365,158,348)
Distributions to Realized gain on investments--net (229,125) (175,283)
Shareholders
(Note 1f): Net decrease in net assets resulting from dividends
and distributions to shareholders (182,493,606) (365,333,631)
--------------- ---------------
Beneficial Net proceeds from sale of shares 6,915,474,007 13,708,317,153
Interest Net asset value of shares issued to shareholders
Transactions in reinvestment of dividends and distributions (Note 1f) 181,749,729 363,840,858
(Note 3): --------------- ---------------
7,097,223,736 14,072,158,011
--------------- ---------------
Cost of shares redeemed (6,952,923,178) (14,222,080,551)
--------------- ---------------
Net increase (decrease) in net assets derived from
beneficial interest transactions 144,300,558 (149,922,540)
--------------- ---------------
Net Assets: Total increase (decrease) in net assets 143,596,925 (149,593,461)
Beginning of period 6,946,666,656 7,096,260,117
--------------- ---------------
End of period $ 7,090,263,581 $ 6,946,666,656
=============== ===============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1998
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
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,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<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 .0252 .0503 .0491 .0538 .0366
Realized and unrealized gain (loss)
on investments--net (.0001) .0001 (.0003) .0016 (.0012)
---------- ---------- ---------- ---------- ----------
Total from investment operations .0251 .0504 .0488 .0554 .0354
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.0252) (.0503) (.0491) (.0538) (.0366)
Realized gain on investments--net --++ --++ (.0001) (.0001) --++
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.0252) (.0503) (.0492) (.0539) (.0366)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total investment return 5.16%* 5.16% 5.05% 5.53% 3.73%
========== ========== ========== ========== ==========
Ratios to Average Expenses .65%* .65% .64% .67% .65%
Net Assets: ========== ========== ========== ========== ==========
Investment income and realized gain
on investments--net 5.16%* 5.03% 4.88% 5.40% 3.67%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period
Data: (in thousands) $7,090,264 $6,946,667 $7,096,260 $7,079,355 $6,240,997
========== ========== ========== ========== ==========
<FN>
++Amount is less than $.0001 per share.
*Annualized.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1998
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) Repurchase agreements--The Trust invests in US Government
securities pursuant to repurchase agreements with a member bank of
the Federal Reserve System or a primary dealer in US Government
securities. Under such agreements, the bank or primary dealer agrees
to repurchase the security at a mutually agreed upon time and price.
The Trust takes possession of the underlying securities, marks to
market such securities and, if necessary, receives additional
securities daily to ensure that the contract is fully
collateralized.
(c) Income taxes--It is the 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.
(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
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 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 ("MLFD" or "Distributor"), a division of Princeton Funds
Distributor, Inc. ("PFD"), which is 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
Merrill Lynch Ready Assets Trust
June 30, 1998
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, PFD, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the six months
ended June 30, 1998 and the year ended December 31, 1997 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.
4. Capital Loss Carryforward:
At December 31, 1997, the Trust had a net capital loss carryforward
of approximately $71,000, all of which expires in 2005. This amount
will be available to offset like amounts of any future taxable
gains.
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
Fred G. Weiss, Trustee
Terry K. Glenn, Executive Vice President
Kevin J. McKenna, Senior Vice President
Joseph T. Monagle Jr., Senior Vice President
Donaldo S. Benito, Vice President
Donald C. Burke, 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
