MERRILL LYNCH
READY ASSETS
TRUST
Semi-Annual Report
June 30, 1999
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. An
investment in the Trust is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other Government agency.
Although the Trust seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the
Trust. 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, 1999
DEAR SHAREHOLDER
For the six-month period ended June 30, 1999, Merrill Lynch Ready
Assets Trust paid shareholders a net annualized dividend of 4.45%*.
The Trust's 7-day yield as of June 30, 1999 was 4.39%.
The average portfolio maturity for Merrill Lynch Ready Assets Trust
at June 30, 1999 was 70 days, compared to 65 days at December 31,
1998.
The Environment
There were some conflicting signals regarding the future direction
of the US economy during the six months ended June 30, 1999.
However, on balance the economic outlook continued to be positive.
The US economic expansion is ongoing, especially in the consumer
sector. Economic growth is not occurring at inflationary rates,
although the Organization of Petroleum Exporting Countries (OPEC)
successfully engineered a near-term increase in the price of crude
oil. Against this backdrop, the US Federal Reserve Board raised the
Federal Funds rate 0.25% at its June 30, 1999 meeting. Outside of
the United States, signs of growth are less apparent in other major
industrial economies. European equity markets have entered a period
of consolidation, and investors are looking for evidence of an
economic pickup. In Japan, there are not yet clear signs that
Japan's economy is improving. There were growing signs of
improvement in some emerging economies (most notably South Korea and
Mexico), although concerns remain for others (such as Brazil and
Argentina).
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the US capital markets, long-term interest rates rose during the
June quarter. While the spread between yields on Treasury securities
and corporate issues of similar maturities has narrowed somewhat, it
remains wide by historic standards. Although the US stock market
exhibited greater price volatility, its advances broadened beyond
relatively few growth stocks to the previously languishing cyclical
sectors.
Early in the six-month period ended June 30, 1999, we had a
constructive approach to the market. By early May, a tightening of
monetary policy seemed likely. Accordingly, we adopted a slightly
more conservative investment strategy for the remainder of the
period.
The portfolio's composition at the end of June and as of our last
report is detailed below:
6/30/99 12/31/98
Bank Notes 6.1% 6.1%
Certificates of Deposit -- 0.7
Certificates of Deposit--European 1.2 1.0
Certificates of Deposit--Yankee* 6.2 9.0
Commercial Paper 47.8 38.7
Corporate Notes 11.1 9.9
Funding Agreements 2.2 1.3
Master Notes 4.9 4.2
Repurchase Agreements -- 5.9
US Government, Agency &
Instrumentality Obligations--
Discount 3.8 6.0
US Government, Agency &
Instrumentality Obligations--
Non-Discount 18.5 17.5
Liabilities in Excess of Other Assets (1.8) (0.3)
------ ------
Total 100.0% 100.0%
====== ======
[FN]
*US branches of foreign banks.
Merrill Lynch Ready Assets Trust
June 30, 1999
In Conclusion
We appreciate your investment in Merrill Lynch Ready Assets Trust,
and we look forward to sharing our investment outlook with you in
our next report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Donaldo S. Benito)
Donaldo S. Benito
Vice President and Portfolio Manager
August 9, 1999
After more than 20 years of service, Arthur Zeikel recently retired
as Chairman of Merrill Lynch Asset Management, L.P. (MLAM). Mr.
Zeikel served as President of MLAM from 1977 to 1997 and as Chairman
since December 1997. Mr. Zeikel is one of the country's most
respected leaders in asset management and presided over the growth
of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500
billion. Mr. Zeikel will remain on Merrill Lynch Ready Asset Trust's
Board of Trustees. We are pleased to announce that Terry K. Glenn
has been elected President and Trustee of the Trust. Mr. Glenn has
held the position of Executive Vice President of MLAM since 1983.
Mr. Zeikel's colleagues at MLAM join the Trust's Board of Trustees
in wishing him well in his retirement from Merrill Lynch and are
pleased that he will continue as a member of the Trust's Board of
Trustees.
OFFICERS AND TRUSTEES
Terry K. Glenn, 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
Arthur Zeikel, Trustee
Kevin J. McKenna, Senior Vice President
Joseph T. Monagle Jr., Senior Vice President
Donaldo S. Benito, Vice President
Donald C. Burke, Vice President and Treasurer
Ira P. Shapiro, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th floor
New York, NY 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210
Gerald M. Richard, Treasurer of Merrill Lynch Ready Assets Trust has
recently retired. His colleagues at Merrill Lynch Asset Management,
L.P. join the Trust's Board of Trustees in wishing Mr. Richard well
in his retirement.
Merrill Lynch Ready Assets Trust
June 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
Bank Notes--6.1%
American Express $ 20,000 4.95%++ 4/17/2000 $ 20,000
Centurion Bank 24,000 4.95++ 4/24/2000 23,997
25,000 4.95++ 4/27/2000 25,000
25,000 4.95++ 5/05/2000 25,000
35,000 4.95++ 5/18/2000 35,000
Comerica Bank 20,000 4.88++ 5/01/2000 19,989
First Union 25,000 5.02++ 8/30/1999 25,000
National Bank 35,000 5.02++ 9/01/1999 35,000
29,000 5.02++ 11/16/1999 29,014
20,000 5.30++ 3/01/2000 19,872
25,000 4.95++ 5/08/2000 25,000
NationsBank NA 40,000 4.83++ 8/24/1999 39,998
25,000 4.92++ 3/16/2000 24,995
PNC Bank NA 30,000 5.01++ 11/03/1999 29,989
US Bank NA 20,000 5.61++ 6/26/2000 19,857
Total Bank Notes
(Cost--$397,966) 397,711
Certificates of Deposit--European--1.2%
Abbey National 37,000 5.026++ 10/29/1999 36,933
Treasury Services 37,000 4.96++ 11/01/1999 37,000
Plc, London
Total Certificates of Deposit--European
(Cost--$74,000) 73,933
Certificates of Deposit--Yankee--6.2%
Bank Austria AG, NY 25,000 5.20 5/08/2000 24,858
Bank of Montreal, 10,000 4.82++ 7/15/1999 10,000
Chicago 25,000 4.96++ 7/22/1999 24,999
Bank of Nova 25,000 5.26 3/10/2000 24,891
Scotia, NY
Bayerische Hypo-und 20,000 5.15 3/23/2000 19,892
Vereinsbank AG, NY 20,000 5.15 4/28/2000 19,881
Commerzbank 10,000 5.085 2/17/2000 9,951
AG, NY 20,000 5.15 3/24/2000 19,891
20,000 5.20 3/28/2000 19,896
20,000 5.17 3/31/2000 19,891
15,000 4.873 4/10/2000 14,994
15,000 5.15 4/20/2000 14,912
24,500 5.15 5/08/2000 24,351
25,000 5.77 7/03/2000 24,990
Credit Agricole 10,000 5.11 4/06/2000 9,940
Indosuez, NY
Credit Suisse First 20,000 4.97++ 6/12/2000 19,994
Boston, NY
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Certificates of Deposit--Yankee (concluded)
<S> <C> <C> <C> <C>
Societe Generale, $ 20,000 5.18 % 2/28/2000 $ 19,907
NY 20,000 5.29 3/03/2000 19,920
15,000 5.13 4/07/2000 14,912
Svenska 10,000 5.195 2/28/2000 9,955
Handelsbanken
AB, NY
Toronto-Dominion 35,000 4.834++ 8/13/1999 34,997
Bank, NY
Total Certificates of Deposit--Yankee
(Cost--$404,380) 403,022
Commercial Paper--47.8%
Alpine Securitization 25,000 4.93 7/13/1999 24,955
Corporation 15,000 4.94 7/22/1999 14,955
Amsterdam Funding 25,000 4.92 7/01/1999 24,997
Corp. 7,787 4.83 7/02/1999 7,785
25,000 4.87 7/07/1999 24,976
13,000 4.82 7/14/1999 12,975
26,712 4.82 7/21/1999 26,636
12,000 5.11 9/13/1999 11,868
Apreco, Inc. 20,000 4.87 7/29/1999 19,921
20,000 4.95 7/29/1999 19,920
20,000 5.05 8/16/1999 19,869
20,000 5.07 8/23/1999 19,850
Atlantis One Funding 25,000 4.82 7/15/1999 24,949
Corp. 20,000 4.84 7/21/1999 19,943
15,000 4.83 8/13/1999 14,910
20,000 4.83 8/17/1999 19,867
25,502 4.82 9/14/1999 25,217
35,000 4.82 9/22/1999 34,565
14,303 4.82 9/24/1999 14,121
Bank of Scotland 20,000 5.12 9/09/1999 19,792
Treasury Services
Plc
Bear Stearns 50,000 4.85 7/09/1999 49,940
Companies, Inc.
CXC Incorporated 16,425 4.86 7/15/1999 16,392
20,000 4.91 7/19/1999 19,948
18,762 4.82 7/26/1999 18,696
20,000 4.87 7/27/1999 19,926
25,000 5.04 8/03/1999 24,881
Centric Capital Corp. 20,000 5.12 9/17/1999 19,767
Clipper Receivables 22,668 5.75 7/01/1999 22,664
Corp. 23,500 4.82 7/12/1999 23,462
15,000 4.82 8/04/1999 14,929
25,000 4.93 8/10/1999 24,860
12,000 5.03 8/12/1999 11,928
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
<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 (continued)
Commonwealth $ 20,000 5.10% 9/27/1999 $ 19,736
Bank of Australia
Concord Minutemen 15,000 4.82 7/08/1999 14,984
Capital Co. LLC 35,000 4.82 7/09/1999 34,958
20,000 4.82 7/14/1999 19,962
20,000 4.84 7/15/1999 19,960
17,721 4.82 7/22/1999 17,668
13,000 4.83 9/20/1999 12,842
ContiFinancial Corp. 22,300 4.83 7/01/1999 22,297
Corporate Asset 20,000 4.82 7/08/1999 19,978
Funding Co., Inc. 15,000 4.82 7/16/1999 14,968
29,050 4.82 7/26/1999 28,947
Corporate 35,000 4.90 8/04/1999 34,834
Receivables Corp.
Countrywide Home 15,000 5.05 7/28/1999 14,941
Loans, Inc. 25,000 4.93 8/09/1999 24,864
Daimler-Benz North 25,000 4.82 7/16/1999 24,946
America Corp. 20,000 4.83 7/20/1999 19,946
25,000 4.83 8/16/1999 24,837
25,000 4.81 8/20/1999 24,823
Edison Asset 30,000 4.95 7/16/1999 29,934
Securitization, LLC 47,169 4.87 7/19/1999 47,048
13,163 4.82 8/04/1999 13,101
19,969 4.83 8/06/1999 19,869
34,760 4.95 8/16/1999 34,533
50,000 5.07 8/18/1999 49,661
25,000 5.03 8/23/1999 24,812
10,000 5.00 8/24/1999 9,923
21,500 5.03 8/26/1999 21,327
22,873 5.03 8/27/1999 22,686
5,701 4.82 9/10/1999 5,641
Enterprise Funding 19,920 4.92 7/12/1999 19,887
Corp. 38,160 5.03 7/15/1999 38,080
15,000 5.09 8/20/1999 14,892
Eureka Securitization 40,000 4.93 8/12/1999 39,766
Inc. 20,000 5.04 8/13/1999 19,877
Finova Capital Corp. 6,400 4.92 7/23/1999 6,380
20,000 4.87 7/27/1999 19,927
10,000 4.98 8/20/1999 9,929
28,000 4.89 8/27/1999 27,771
10,600 4.87 9/13/1999 10,483
Formosa Plastics 10,300 5.13 9/23/1999 10,170
Corporation, USA,
Series A
Formosa Plastics 25,000 4.83 7/08/1999 24,973
Corporation, USA, 9,000 4.82 7/13/1999 8,984
Series B 25,000 5.10 9/16/1999 24,713
GE Capital 5,218 5.95 7/01/1999 5,217
International
Funding, Inc.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
<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 (continued)
Grand Funding $ 25,000 4.82% 7/02/1999 $ 24,993
Corp. 25,000 4.82 7/08/1999 24,973
25,000 4.83 7/09/1999 24,970
35,000 4.82 7/13/1999 34,939
15,000 4.87 7/15/1999 14,970
31,975 4.83 7/21/1999 31,884
20,000 4.87 7/23/1999 19,938
Greenwich Funding 20,000 4.82 7/16/1999 19,957
Corp. 20,000 4.94 7/26/1999 19,929
20,000 4.83 8/03/1999 19,908
International 9,396 4.82 7/06/1999 9,388
Securitization Corp. 15,355 4.93 7/20/1999 15,313
20,000 4.87 7/21/1999 19,943
15,717 4.93 7/21/1999 15,672
25,000 5.03 7/22/1999 24,923
8,905 4.94 7/23/1999 8,877
15,000 4.82 8/06/1999 14,925
5,067 4.83 8/10/1999 5,039
15,000 4.98 8/10/1999 14,915
10,105 4.95 8/16/1999 10,039
11,210 4.88 8/24/1999 11,124
18,097 5.08 8/24/1999 17,957
11,826 4.95 8/31/1999 11,719
11,710 5.18 9/21/1999 11,566
7,646 5.30 9/30/1999 7,541
Knight-Ridder, Inc. 22,000 4.83 7/28/1999 21,916
Lehman Brothers 15,000 5.08 9/08/1999 14,846
Holdings Inc. 25,000 5.08 9/09/1999 24,740
Lexington Parker 20,000 4.82 7/14/1999 19,962
Capital Company, LLC
Morgan Stanley, Dean 35,000 5.26 1/28/2000 35,000
Witter & Co.
New Center Asset 25,000 4.83 8/02/1999 24,889
Trust
Old Line Funding 23,321 4.84 7/06/1999 23,302
Corp.
Park Avenue 25,000 4.87 7/06/1999 24,980
Receivables Corp. 35,000 4.95 7/12/1999 34,942
25,000 4.82 7/19/1999 24,935
15,000 5.32 9/09/1999 14,844
20,000 5.30 10/01/1999 19,723
Preferred Receivables 35,000 4.92 7/27/1999 34,871
Funding Corp. 15,220 4.95 8/02/1999 15,151
11,730 4.93 8/03/1999 11,675
18,200 4.95 8/04/1999 18,112
Repeat Offering 19,429 4.83 7/28/1999 19,355
Securitization Entity
Funding Inc. (ROSE)
Republic Industries 20,000 4.94 7/12/1999 19,967
Funding Corp. 18,000 5.07 8/11/1999 17,894
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
<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 (concluded)
Sinochem American $ 10,000 4.99% 8/11/1999 $ 9,942
C.P., Inc.
Thames Asset Global 30,000 4.83 7/07/1999 29,972
Securitization, Inc. 20,000 4.93 8/05/1999 19,902
15,000 4.95 8/05/1999 14,927
15,000 5.10 8/13/1999 14,907
Tulip Funding Corp. 35,000 4.83 7/27/1999 34,871
20,000 4.83 7/29/1999 19,921
45,000 5.10 9/21/1999 44,448
Unifunding, Inc. 25,000 4.83 7/07/1999 24,977
20,000 4.82 7/16/1999 19,957
20,000 4.82 7/21/1999 19,943
10,000 4.83 8/03/1999 9,954
Variable Funding 35,000 4.92 7/06/1999 34,971
Capital Corp. 20,000 4.92 7/07/1999 19,981
25,000 4.82 7/20/1999 24,932
Vattenfall Treasury, 10,000 4.82 8/05/1999 9,951
Inc.
WCP Funding Inc. 25,000 4.83 7/08/1999 24,973
20,000 4.82 7/12/1999 19,968
20,000 4.82 7/23/1999 19,937
20,000 4.82 8/05/1999 19,902
20,000 5.06 8/25/1999 19,842
Windmill Funding 25,000 4.86 7/01/1999 24,997
Corp. 25,000 4.82 7/13/1999 24,956
25,000 4.82 8/02/1999 24,889
25,000 4.93 8/04/1999 24,881
25,000 5.03 8/17/1999 24,833
6,537 5.12 9/20/1999 6,458
Xerox Capital 30,000 4.73 7/14/1999 29,943
(Europe) Plc
Total Commercial Paper
(Cost--$3,100,452) 3,100,180
Corporate Notes--11.1%
Abbey National 25,000 4.79++ 7/20/1999 24,999
Treasury Services Plc 30,000 5.07++ 8/17/1999 29,996
CIT Group Holdings, 25,000 4.83++ 8/30/1999 24,998
Inc. (The) 32,000 4.905++ 5/30/2000 31,984
Ford Motor Credit 30,000 4.95++ 5/05/2000 30,000
Company 30,000 4.95++ 5/23/2000 30,000
General Electric 20,000 4.95++ 4/12/2000 19,990
Capital Corp. 13,500 4.945++ 5/03/2000 13,495
13,000 4.95++ 5/12/2000 12,993
35,000 4.983++ 5/26/2000 34,980
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
<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 (concluded)
General Motors $ 20,000 4.83%++ 7/06/1999 $ 20,000
Acceptance Corp. 20,000 5.10++ 7/06/1999 20,000
20,000 4.958++ 8/26/1999 19,993
15,000 5.75++ 7/28/2000 14,995
25,000 5.201++ 12/01/2000 24,988
21,000 5.077++ 2/27/2001 21,020
Household Finance 20,500 4.95++ 9/13/1999 20,494
Corp.
Liberty Lighthouse 73,000 4.98++ 10/08/1999 72,990
US Capital Co. LLC
Morgan Guaranty 16,500 4.90++ 5/10/2000 16,493
Trust Company of
New York
National Rural 25,000 4.969++ 9/21/1999 24,997
Utilities Cooperative
Finance Corp.
PepsiCo, Inc. 25,000 4.838++ 8/19/1999 24,997
Restructured Asset 32,000 4.99++ 8/13/1999 32,000
Securities with
Enhanced Returns,
Series 1998-MM-7-1
Trust
Restructured Asset 37,100 5.053++ 1/21/2000 37,100
Securities with
Enhanced Returns,
Series 1998-MM-12-3
Trust
Wells Fargo & Co. 20,000 5.225++ 4/10/2000 19,896
Xerox Capital 19,500 4.92++ 8/20/1999 19,495
(Europe) Plc
Xerox Credit Corp. 22,500 4.87++ 4/06/2000 22,486
57,500 5.70++ 7/26/2000 57,376
Total Corporate Notes
(Cost--$722,991) 722,755
Funding Agreements--2.2%
Jackson National 80,000 4.95++ 5/01/2000 80,000
Life Insurance Co.
John Hancock Mutual 14,000 4.97++ 5/01/2000 14,000
Life Insurance Co.
Metropolitan Life 50,000 5.00++ 5/01/2000 50,000
Insurance Company
Total Funding Agreements
(Cost--$144,000) 144,000
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<S> <C> <C> <C> <C>
Master Notes--4.9%
Goldman Sachs $ 75,000 4.93%++ 10/15/1999 $ 75,000
Group, Inc. 75,000 5.108++ 10/15/1999 75,000
150,000 4.93++ 11/18/1999 150,000
16,000 5.08++ 7/12/2000 16,000
Total Master Notes
(Cost--$316,000) 316,000
US Government, Agency & Instrumentality
Obligations--Discount--3.8%
Federal Farm 25,000 4.40 9/17/1999 24,735
Credit Banks 5,000 4.35 10/01/1999 4,937
Federal National 35,000 4.77 7/01/1999 34,995
Mortgage Association 15,000 4.57 7/14/1999 14,972
20,000 4.57 7/15/1999 19,961
80,000 4.47 9/29/1999 79,026
30,000 4.47 10/01/1999 29,625
25,000 5.24 3/08/2000 24,087
US Treasury Bills 15,000 4.41 9/16/1999 14,853
Total US Government, Agency & Instrumentality
Obligations--Discount (Cost--$247,326) 247,191
US Government, Agency & Instrumentality
Obligations--Non-Discount--18.5%
Federal Home Loan 59,000 5.271++ 9/02/1999 58,995
Banks 23,000 5.04++ 11/09/1999 22,995
43,000 5.04++ 11/12/1999 42,991
25,000 4.90++ 1/14/2000 24,928
50,000 4.935++ 1/19/2000 49,859
44,000 5.251++ 4/24/2000 43,986
25,000 5.281++ 4/28/2000 24,992
Federal Home 20,000 5.05++ 11/17/2000 19,812
Loan Mortgage 15,000 5.18++ 11/24/2000 14,880
Corporation 19,500 5.15++ 1/26/2001 19,308
20,000 5.125++ 2/08/2001 19,790
10,000 5.18++ 2/09/2001 9,902
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
<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)
Federal National $ 40,000 5.173%++ 7/14/1999 $ 39,997
Mortgage 25,000 5.289++ 7/15/1999 24,999
Association 75,000 5.294++ 7/30/1999 74,995
50,000 5.354++ 8/19/1999 49,995
25,000 6.00++ 9/02/1999 25,029
50,000 5.08 9/24/1999 49,980
20,000 5.60 1/12/2000 20,010
10,000 6.20 6/26/2000 10,049
10,000 5.07 12/14/2000 9,895
20,000 5.21 1/26/2001 19,807
20,000 5.41 3/22/2001 19,829
Student Loan 15,000 4.50++ 8/02/1999 14,991
Marketing 55,000 5.289++ 1/12/2000 54,994
Association 50,000 5.314++ 2/02/2000 49,993
42,000 5.334++ 2/04/2000 41,994
35,000 5.539++ 2/14/2000 34,985
US Treasury Notes 15,000 6.375 7/15/1999 15,009
35,000 6.875 8/31/1999 35,109
50,000 5.875 11/15/1999 50,156
20,000 7.75 11/30/1999 20,219
40,000 5.375 1/31/2000 40,075
65,000 6.875 3/31/2000 65,772
40,000 6.125 7/31/2000 40,300
20,000 4.50 9/30/2000 19,769
10,000 4.625 11/30/2000 9,888
10,000 5.00 4/30/2001 9,913
Total US Government, Agency & Instrumentality
Obligations--Non-Discount
(Cost--$1,203,071) 1,200,190
Total Investments (Cost--$6,610,186)--101.8% 6,604,982
Liabilities in Excess of Other Assets--(1.8%) (113,928)
----------
Net Assets--100.0% $6,491,054
==========
<FN>
*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 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, 1999.
++Variable rate notes.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of June 30, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$6,610,186,427*)
(Note 1a) $ 6,604,981,767
Receivables:
Interest $ 29,885,281
Beneficial interest sold 1,085,864
Securities sold 134,840 31,105,985
---------------
Prepaid registration fees and other assets (Note 1e) 208,638
---------------
Total assets 6,636,296,390
---------------
Liabilities: Payables:
Securities purchased 91,554,593
Beneficial interest redeemed 46,770,084
Investment adviser (Note 2) 2,129,227
Distributor (Note 2) 1,435,796
Dividends to shareholders (Note 1f) 548 141,890,248
---------------
Accrued expenses and other liabilities 3,352,464
---------------
Total liabilities 145,242,712
---------------
Net Assets: Net assets $ 6,491,053,678
===============
Net Assets Shares of beneficial interest, $.10 par value, unlimited number of
Consist of: shares authorized $ 649,625,834
Paid-in capital in excess of par 5,846,632,504
Unrealized depreciation on investments--net (5,204,660)
---------------
Net Assets--Equivalent to $1.00 per share based on 6,496,258,338
shares of beneficial interest outstanding $ 6,491,053,678
===============
<FN>
*Cost for Federal income tax purposes. As of June 30, 1999, net unrealized
depreciation for Federal income tax purposes amounted to $5,204,660, of which
$78,287 related to appreciated securities and $5,282,947 related to
depreciated securities.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
June 30, 1999
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 167,957,315
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 11,867,331
Transfer agent fees (Note 2) 5,092,002
Distribution fees (Note 2) 3,800,339
Accounting services (Note 2) 188,920
Printing and shareholder reports 179,123
Custodian fees 154,298
Registration fees (Note 1e) 142,184
Trustees' fees and expenses 86,481
Professional fees 44,261
Pricing fees 2,458
Other 28,836
---------------
Total expenses 21,586,233
---------------
Investment income--net 146,371,082
---------------
Realized & Realized gain on investments--net 15,309
Unrealized Change in unrealized appreciation/depreciation on
Gain (Loss) on investments--net (5,446,343)
Investments--Net ---------------
(Note 1d): Net Increase in Net Assets Resulting from Operations $ 140,940,048
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: June 30, 1999 Dec. 31, 1998
<S> <S> <C> <C>
Operations: Investment income--net $ 146,371,082 $ 359,882,046
Realized gain on investments--net 15,309 1,128,586
Change in unrealized appreciation/depreciation on
investments--net (5,446,343) 370,665
--------------- ---------------
Net increase in net assets resulting from operations 140,940,048 361,381,297
--------------- ---------------
Dividends & Investment income--net (146,371,082) (359,882,046)
Distributions to Realized gain on investments--net (15,309) (1,128,586)
Shareholders --------------- ---------------
(Note 1f): Net decrease in net assets resulting from dividends and
distributions to shareholders (146,386,391) (361,010,632)
--------------- ---------------
Beneficial Net proceeds from sale of shares 6,120,004,530 13,077,395,532
Interest Net asset value of shares issued to shareholders in
Transactions reinvestment of dividends and distributions (Note 1f) 145,766,053 359,587,623
(Note 3): --------------- ---------------
6,265,770,583 13,436,983,155
Cost of shares redeemed (6,942,983,572) (13,210,307,466)
--------------- ---------------
Net increase (decrease) in net assets derived from
beneficial interest transactions (677,212,989) 226,675,689
--------------- ---------------
Net Assets: Total increase (decrease) in net assets (682,659,332) 227,046,354
Beginning of period 7,173,713,010 6,946,666,656
--------------- ---------------
End of period $ 6,491,053,678 $ 7,173,713,010
=============== ===============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have
been derived from information provided in For the Six
the financial statements. Months Ended
June 30, For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<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 .0219 .0497 .0503 .0491 .0538
Realized and unrealized gain
(loss) on investments--net (.0008) .0003 .0001 (.0003) .0016
---------- ---------- ---------- ---------- ----------
Total from investment operations .0211 .0500 .0504 .0488 .0554
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.0219) (.0497) (.0503) (.0491) (.0538)
Realized gain on investments--net --++ (.0002) --++ (.0001) (.0001)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.0219) (.0499) (.0503) (.0492) (.0539)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total investment return 4.45%* 5.11% 5.16% 5.05% 5.53%
========== ========== ========== ========== ==========
Ratios to Average Expenses .65%* .65% .65% .64% .67%
Net Assets: ========== ========== ========== ========== ==========
Investment income and realized gain
on investments--net 4.43%* 5.01% 5.03% 4.88% 5.40%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in
Data: thousands) $6,491,054 $7,173,713 $6,946,667 $7,096,260 $7,079,355
========== ========== ========== ========== ==========
<FN>
++Amount is less than $.0001 per share.
*Annualized.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 1999
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. The Trust's financial statements are
prepared in accordance with generally accepted accounting
principles, which may require the use of management accruals and
estimates. These unaudited financial statements reflect all
adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim period presented. All
such adjustments are of a normal recurring nature. The following is
a summary of significant accounting policies followed by the Trust.
(a) Valuation of investments--Portfolio securities with remaining
maturities of greater than sixty days are valued at the most recent
bid price or yield equivalent as obtained from dealers that make
markets in such securities. As securities transition from sixty-one
to sixty days to maturity, the difference between the valuation
existing on the sixty-first day before maturity and maturity value
is amortized on a straight-line basis to maturity. Securities
maturing sixty days or less from their date of acquisition are
valued at amortized cost, which approximates market value. For
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 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. Under such agreements,
the counterparty 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 additions to such 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.
Merrill Lynch Ready Assets Trust
June 30, 1999
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 Distribution Plans with Merrill Lynch Funds
Distributor ("MLFD" or the "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
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
Incorporated ("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.
Financial Data Services, Inc. ("FDS"), 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, FDS, 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, 1999 and the year ended December 31, 1998 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.
