MERRILL LYNCH
READY ASSETS
TRUST
FUND LOGO
Annual Report
December 31, 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 US
Government. There can be no assurance that the Trust will be able to
maintain a stable net asset value of $1.00 per share. 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
December 31, 1999
DEAR SHAREHOLDER
For the year ended December 31, 1999, Merrill Lynch Ready Assets
Trust paid shareholders a net annualized dividend of 4.74%*. For the
six-month period ended December 31, 1999, the Trust paid
shareholders a net annualized dividend of 5.03%*. The Trust's 7-day
yield as of December 31, 1999 was 5.34%.
The average portfolio maturity for Merrill Lynch Ready Assets Trust
at December 31, 1999 was 57 days, compared to 70 days at June 30,
1999.
The Environment
The US economy finished 1999 with strong growth, low inflation,
accelerating productivity, strong earnings and rising real wages. At
its meeting on November 16, 1999, the Federal Reserve Board
announced its move to tighten by 25 basis points (0.25%),
essentially putting short-term interest rates back to where they
were before the three quarter-point cuts that were made in the fall
of 1998. Monetary policy was kept steady at the central bank's last
meeting in 1999 on December 21 over Year 2000 concerns, but
indications point to further tightening in early 2000. (The Federal
Reserve Board did raise the Federal Funds rate by 0.25% on February
2, 2000.)
US stock markets rebounded in October and advanced on a technology-
driven rally in November. Significant strength in small-
capitalization stocks also emerged in November, particularly in the
small cap growth sector. Overall, US stock markets ended the year at
new highs. In the fixed-income area, the 30-year Treasury bond
yield hit a two-year high over concerns of the continued strength of
the economy and potential future action by the Federal Reserve
Board.
Early in the six-month period ended December 31, 1999, we had a more
constructive view of the market as Year 2000 concerns steepened the
yield curve. As money market products became available at attractive
levels, we placed a modest amount of maturities in December for
liquidity purposes. Later in the period, as a hedge against rising
interest rates, we increased our holdings of floating rate
securities with an emphasis on those linked to one-month and three-
month London Interbank Offered Rates.
*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 December and as of our
last report is detailed below:
12/31/99 6/30/99
Bank Notes 5.8% 6.1%
Certificates of Deposit 0.7 --
Certificates of Deposit--European -- 1.2
Certificates of Deposit--Yankee++ 8.1 6.2
Commercial Paper 47.7 47.8
Corporate Notes 11.2 11.1
Funding Agreements 2.4 2.2
Master Notes 0.3 4.9
Promissory Notes 4.4 --
Time Deposits 3.9 --
US Government, Agency & Instrumentality
Obligations--Discount 0.8 3.8
US Government, Agency & Instrumentality
Obligations--Non-Discount 14.8 18.5
Liabilities in Excess of Other Assets (0.1) (1.8)
------ ------
Total 100.0% 100.0%
====== ======
++US branches of foreign banks.
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
February 9, 2000
Merrill Lynch Ready Assets Trust
December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
<S> <C> <C> <C> <C>
Bank Notes--5.8%
American Express $ 20,000 5.70%++ 4/17/2000 $ 20,000
Centurion Bank 24,000 5.70++ 4/24/2000 23,999
25,000 5.70++ 4/27/2000 25,000
25,000 5.70++ 5/05/2000 25,000
35,000 5.70++ 5/18/2000 35,000
21,000 5.75++ 7/13/2000 21,000
Bank One, IL, NA 30,000 6.087++ 10/06/2000 29,866
Comerica Bank 20,000 5.63++ 5/01/2000 19,995
First USA Bank 10,000 6.215 10/18/2000 9,961
First Union 20,000 5.30 3/01/2000 19,974
National Bank 25,000 5.70++ 5/08/2000 25,000
Fleet National Bank 25,000 5.71++ 7/13/2000 24,995
KeyBank NA 35,000 6.235++ 3/20/2000 35,000
NationsBank NA 25,000 5.67++ 3/16/2000 24,998
US Bank, NA 20,000 5.61 6/26/2000 19,948
Total Bank Notes (Cost--$359,968) 359,736
Certificates of Deposit--0.7%
First Union 20,000 5.75++ 7/19/2000 19,986
National Bank 25,000 6.543++ 8/31/2000 24,828
Total Certificates of Deposit (Cost--$45,000) 44,814
Certificates of Deposit--Yankee--8.1%
Bank Austria AG, NY 25,000 5.20 5/08/2000 24,908
Bank of Nova 25,000 5.26 3/10/2000 24,955
Scotia, NY
Bayerische Hypo-und- 20,000 5.15 3/23/2000 19,953
Vereinsbank AG, NY 20,000 5.15 4/28/2000 19,931
Bayerische 25,000 6.433++ 11/09/2000 24,985
Landesbank
Girozentrale, NY
Commerzbank 10,000 5.085 2/17/2000 9,982
AG, NY 20,000 5.15 3/24/2000 19,952
20,000 5.20 3/28/2000 19,952
20,000 5.17 3/31/2000 19,949
15,000 6.389++ 4/10/2000 14,998
15,000 5.15 4/20/2000 14,952
24,500 5.15 5/08/2000 24,406
25,000 5.77 7/03/2000 24,936
Credit Agricole 10,000 5.11 4/06/2000 9,971
Indosuez, NY 25,000 6.459++ 11/08/2000 24,987
30,000 5.564++ 11/29/2000 29,981
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
<S> <C> <C> <C> <C>
Certificates of Deposit--Yankee (concluded)
Credit Suisse First $ 20,000 5.72%++ 6/12/2000 $ 19,985
Boston, NY
Deutsche Bank 30,000 6.00 11/13/2000 29,890
AG, NY
Societe Generale, NY 20,000 5.18 2/28/2000 19,969
20,000 5.29 3/03/2000 19,970
15,000 5.13 4/07/2000 14,956
30,000 6.448++ 11/09/2000 29,982
Svenska Handels- 10,000 5.195 2/28/2000 9,985
banken AB, NY
UBS AG, NY 30,000 6.06 11/20/2000 29,901
Total Certificates of Deposit--
Yankee (Cost--$504,360) 503,436
Commercial Paper--47.7%
AT&T Corporation 15,000 6.134 7/13/2000 14,991
Alpine Securitization 25,000 6.05 1/13/2000 24,947
Corporation 30,000 6.00 1/14/2000 29,930
30,000 6.70 1/20/2000 29,888
Amsterdam Funding 7,000 6.08 1/11/2000 6,987
Corporation 15,000 6.03 1/13/2000 14,968
20,000 5.85 1/14/2000 19,955
25,000 5.45 1/18/2000 24,926
33,000 6.05 1/27/2000 32,850
Apreco, Inc. 15,450 6.05 1/26/2000 15,382
20,000 5.90 2/02/2000 19,892
10,000 6.05 2/11/2000 9,931
20,000 5.95 2/24/2000 19,811
14,550 6.05 2/25/2000 14,410
Asset Securitization 30,000 6.571 3/13/2000 30,000
Cooperative Corp.
BILLS Securitization 20,000 5.95 2/08/2000 19,873
Ltd.
BankAmerica Corp. 25,000 6.03 3/23/2000 24,667
Bear Stearns 20,000 5.79 3/07/2000 19,787
Companies, Inc. 40,000 5.79 3/08/2000 39,567
25,000 5.79 3/09/2000 24,725
CXC Incorporated 20,000 5.93 1/20/2000 19,934
20,000 6.02 1/20/2000 19,934
25,000 6.15 2/01/2000 24,863
20,000 5.97 2/03/2000 19,889
25,000 5.88 2/14/2000 24,809
65,000 6.573 3/15/2000 64,999
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
<S> <C> <C> <C> <C>
Commercial Paper (continued)
Centric Capital $ 15,000 5.98% 1/18/2000 $ 14,955
Corp. 20,000 6.06 1/31/2000 19,899
22,400 5.98 2/02/2000 22,279
20,000 6.00 2/10/2000 19,865
15,000 5.85 2/15/2000 14,883
15,000 5.92 2/23/2000 14,861
20,000 6.10 3/01/2000 19,807
Citicorp 25,000 5.75 2/17/2000 24,797
Corporate Asset 15,000 6.50 1/20/2000 14,946
Funding Co. Inc. 25,000 6.10 2/03/2000 24,856
20,000 6.00 2/10/2000 19,865
25,000 5.86 2/24/2000 24,763
25,000 5.98 3/01/2000 24,758
Corporate 15,000 6.10 1/18/2000 14,956
Receivables Corp. 15,000 5.88 2/16/2000 14,880
Countrywide Home 20,000 4.15 1/04/2000 19,991
Loans, Inc. 17,000 6.22 2/15/2000 16,865
Credit Suisse First 20,000 5.41 2/02/2000 19,892
Boston Inc.
Credit Suisse First 25,000 5.95 3/10/2000 24,721
Boston, International
Ltd.
Cregem North 10,000 5.755 4/10/2000 9,837
America, Inc.
DaimlerChrysler 35,000 5.99 2/08/2000 34,777
North America
Holdings Corp.
Delaware Funding 26,508 5.81 1/25/2000 26,401
Corp.
Den Danske Corp. 30,000 5.84 2/17/2000 29,756
25,000 5.735 5/19/2000 24,429
Den Norske Bank ASA 25,000 5.79 3/29/2000 24,642
Edison Asset 25,000 5.81 1/24/2000 24,903
Securitization, LLC 25,000 5.76 1/31/2000 24,873
25,000 5.80 2/23/2000 24,768
25,000 5.75 2/24/2000 24,763
25,000 5.73 2/28/2000 24,758
25,000 5.75 2/28/2000 24,759
25,000 5.75 2/29/2000 24,762
20,000 5.85 2/29/2000 19,810
10,000 5.83 3/08/2000 9,892
25,000 5.79 3/15/2000 24,701
20,000 5.94 3/22/2000 19,737
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
<S> <C> <C> <C> <C>
Commercial Paper (continued)
Enterprise $ 13,000 5.93% 1/25/2000 $ 12,946
Funding Corp. 20,140 6.05 2/01/2000 20,032
Eureka 26,395 6.45 1/24/2000 26,282
Securitization Inc. 20,000 5.93 1/25/2000 19,919
25,000 6.08 1/26/2000 24,895
20,000 5.95 1/27/2000 19,912
20,000 5.88 2/15/2000 19,844
Finova Capital Corp. 15,000 6.10 1/20/2000 14,949
20,000 5.88 2/16/2000 19,840
28,000 5.85 2/22/2000 27,744
10,000 5.80 3/07/2000 9,893
Formosa Plastics 25,000 5.41 1/27/2000 24,891
Corporation, USA, 15,000 5.41 1/28/2000 14,932
Series B
Fortis Funding LLC 25,000 5.74 5/12/2000 24,459
GE Capital 25,000 5.98 2/09/2000 24,835
International 20,000 5.95 2/17/2000 19,837
Funding, Inc. 20,000 5.95 2/18/2000 19,834
20,000 5.78 5/01/2000 19,603
20,000 5.78 5/04/2000 19,593
GTE Corporation 20,000 6.10 2/11/2000 19,858
General Electric 10,000 5.75 3/07/2000 9,893
Capital Corp. 20,000 5.86 3/07/2000 19,787
20,000 5.82 3/10/2000 19,777
13,000 5.73 5/16/2000 12,710
20,000 5.73 5/17/2000 19,550
30,000 5.73 5/25/2000 29,285
Grand Funding Corp. 20,000 6.07 1/10/2000 19,968
9,000 6.07 1/14/2000 8,980
25,000 6.00 2/09/2000 24,835
22,975 6.02 2/09/2000 22,824
Greenwich Funding 14,601 6.05 2/04/2000 14,518
Corp. 25,000 6.00 2/07/2000 24,845
30,000 6.20 2/08/2000 29,799
4,753 5.77 5/09/2000 4,652
Kitty Hawk Funding 15,511 6.05 1/18/2000 15,465
Corp. 20,000 6.09 1/26/2000 19,912
11,309 5.98 2/03/2000 11,246
13,198 6.05 2/18/2000 13,088
25,000 5.77 3/20/2000 24,680
15,352 5.78 3/31/2000 15,127
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
<S> <C> <C> <C> <C>
Commercial Paper (concluded)
Knight-Ridder, Inc. $ 21,598 5.95% 2/16/2000 $ 21,426
Lehman Brothers 15,000 5.90 2/22/2000 14,863
Holdings Inc. 25,000 5.95 3/06/2000 24,738
Morgan Stanley, 35,000 4.83 1/28/2000 35,000
Dean Witter & Co. 25,000 6.15 3/27/2000 24,650
New Center Asset 35,000 6.15 2/01/2000 34,809
Trust
Old Line Funding 25,029 6.08 1/19/2000 24,949
Corp. 19,000 6.05 1/21/2000 18,933
13,000 5.95 1/28/2000 12,941
13,000 5.98 2/10/2000 12,912
16,452 5.98 2/11/2000 16,338
Park Avenue 25,000 5.89 2/11/2000 24,827
Receivables Corp. 11,000 6.561 2/11/2000 11,000
Salomon, Smith 25,000 5.77 2/11/2000 24,826
Barney Holdings, Inc.
San Paolo US 25,000 5.73 5/12/2000 24,459
Financial Company
Tulip Funding Corp. 7,212 6.15 1/21/2000 7,187
30,000 5.83 2/07/2000 29,814
17,788 6.00 2/07/2000 17,677
30,000 5.85 2/24/2000 29,716
15,000 5.85 2/28/2000 14,855
Unifunding, Inc. 27,940 5.92 2/10/2000 27,751
Variable Funding 20,000 6.16 1/06/2000 19,980
Capital Corp. 20,000 6.15 1/07/2000 19,977
25,000 6.20 1/11/2000 24,953
20,000 6.05 1/24/2000 19,919
20,000 5.86 2/16/2000 19,840
25,000 6.50 2/24/2000 25,000
40,000 5.65 2/25/2000 39,647
WCP Funding Inc. 12,500 5.92 2/11/2000 12,414
Windmill Funding 25,000 5.85 1/10/2000 24,959
Corp. 20,000 6.03 1/13/2000 19,958
20,000 6.05 2/03/2000 19,889
25,000 5.79 2/04/2000 24,857
20,000 6.00 2/04/2000 19,886
25,000 5.85 2/07/2000 24,845
25,173 5.87 2/24/2000 24,935
15,077 5.88 2/25/2000 14,932
Woolwich PLC 20,000 5.75 5/16/2000 19,554
Total Commercial Paper
(Cost--$2,975,742) 2,975,577
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
<S> <C> <C> <C> <C>
Corporate Notes--11.2%
Abbey National $ 25,000 6.00% 11/20/2000 $ 24,975
Treasury Services PLC
American Honda 35,000 6.479++ 8/03/2000 34,994
Finance Corp.
CIT Group 32,000 5.655++ 5/30/2000 31,993
Holdings, Inc. 25,000 5.80++ 9/15/2000 24,983
Ford Motor Credit 30,000 5.70++ 5/05/2000 30,000
Company 30,000 5.70++ 5/23/2000 30,000
20,000 5.499++ 10/02/2000 20,002
40,000 5.57++ 11/24/2000 39,982
General Electric 20,000 6.126++ 4/12/2000 20,000
Capital Corp. 13,500 6.111++ 5/03/2000 13,503
13,000 5.39++ 5/12/2000 13,001
35,000 6.041++ 5/26/2000 35,004
General Motors 15,000 5.75 7/28/2000 14,964
Acceptance Corp. 20,000 6.114++ 10/06/2000 19,995
25,000 6.26++ 12/01/2000 25,015
21,000 6.136++ 2/27/2001 20,983
Household Finance 31,000 6.095++ 5/15/2000 30,997
Corp.
Morgan Guaranty 16,500 5.65++ 5/10/2000 16,498
Trust Company of
New York
Morgan Stanley, Dean 30,000 6.201++ 1/22/2001 30,000
Witter & Co.
Restructured Asset 20,500 6.51++ 8/11/2000 20,500
Securities with Enhan-
ced Returns, Series
1998-MM-12-3 Trust
Restructured Asset 37,100 5.50++ 1/21/2000 37,100
Securities with Enhan-
ced Returns, Series
1998-MM-7-1 Trust
SMM Trust 1999-H 25,300 6.255++ 9/25/2000 25,300
Structured Asset 15,000 6.184++ 10/04/2000 15,000
Vehicle Securities
Trust, Series 99-1
Wells Fargo & Co. 20,000 5.225 4/10/2000 19,968
Xerox Capital 25,000 6.131++ 7/19/2000 24,988
(Europe) PLC
Xerox Corp. 57,500 5.70 7/26/2000 57,232
Xerox Credit Corp. 22,500 5.62++ 4/06/2000 22,495
Total Corporate Notes (Cost--$699,763) 699,472
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
<S> <C> <C> <C> <C>
Funding Agreements--2.4%
Jackson National $ 80,000 6.496%++ 5/01/2000 $ 80,000
Life Insurance Co.
Metropolitan Life 50,000 6.546++ 5/01/2000 50,000
Insurance Company
Monumental Life 20,000 6.621++ 11/17/2000 20,000
Insurance Company
Total Funding Agreements
(Cost--$150,000) 150,000
Master Notes--0.3%
Goldman Sachs 16,000 5.39++ 1/12/2001 16,000
Group, Inc.
Total Master Notes
(Cost--$16,000) 16,000
Promissory Notes--4.4%
Goldman Sachs 150,000 6.546++ 7/07/2000 150,000
Group, Inc. 125,000 6.546++ 8/04/2000 125,000
Total Promissory Notes
(Cost--$275,000) 275,000
Time Deposits--3.9%
Chase Manhattan 244,209 4.50++ 1/03/2000 244,209
Bank USA, NA
Total Time Deposits
(Cost--$244,209) 244,209
US Government, Agency & Instrumentality
Obligations--Discount--0.8%
Federal Home Loan 10,000 5.39 8/04/2000 9,655
Mortgage Corporation
Federal National 25,000 5.24 3/08/2000 24,750
Mortgage Association
US Treasury Bills 15,000 4.94 9/14/2000 14,402
Total US Government, Agency & Instrumentality
Obligations--Discount (Cost--$48,897) 48,807
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
Face Interest Maturity
Issue Amount Rate* Date Value
<S> <C> <C> <C> <C>
US Government, Agency & Instrumentality
Obligations--Non-Discount--14.8%
Federal Home Loan $ 25,000 4.90%++ 1/14/2000 $ 24,991
Banks 50,000 4.935++ 1/19/2000 49,981
19,000 5.973++ 4/24/2000 18,998
25,000 5.973++ 4/24/2000 24,997
25,000 6.003++ 4/28/2000 24,997
25,000 5.923++ 7/14/2000 24,993
Federal Home Loan 25,000 5.963++ 7/14/2000 24,993
Mortgage 20,000 5.05 11/17/2000 19,776
Corporation 15,000 5.18 11/24/2000 14,844
19,500 5.15 1/26/2001 19,243
20,000 5.125 2/08/2001 19,720
10,000 5.18 2/09/2001 9,865
Federal National 20,000 5.60 1/12/2000 20,000
Mortgage 10,000 6.20 6/26/2000 10,000
Association 20,000 5.993++ 7/21/2000 19,994
30,000 5.993++ 8/02/2000 29,982
10,000 5.07 12/14/2000 9,880
20,000 5.21 1/26/2001 19,757
20,000 5.41 3/22/2001 19,762
15,000 6.00 7/17/2001 14,883
Student Loan 55,000 5.863++ 1/12/2000 55,000
Marketing 50,000 5.888++ 2/02/2000 49,999
Association 42,000 5.908++ 2/04/2000 41,999
35,000 6.113++ 2/14/2000 34,997
50,000 6.215++ 9/29/2000 49,989
50,000 6.216++ 9/29/2000 49,993
35,000 6.211++ 10/02/2000 34,986
US Treasury Notes 40,000 5.375 1/31/2000 40,000
65,000 6.875 3/31/2000 65,244
40,000 6.125 7/31/2000 40,062
20,000 4.50 9/30/2000 19,781
10,000 4.625 11/30/2000 9,875
10,000 5.00 4/30/2001 9,853
Total US Government, Agency & Instrumentality
Obligations--Non-Discount (Cost--$926,191) 923,434
Total Investments (Cost--$6,245,130)--100.1% 6,240,485
Liabilities in Excess of Other Assets--(0.1%) (8,539)
----------
Net Assets--100.0% $6,231,946
==========
*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
December 31, 1999.
++Variable rate notes.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of December 31, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$6,245,129,916*) $ 6,240,484,786
Cash 33,596
Receivables:
Interest $ 36,850,249
Beneficial interest sold 406,228 37,256,477
---------------
Prepaid registration fees and other assets 219,077
---------------
Total assets 6,277,993,936
---------------
Liabilities: Payables:
Beneficial interest redeemed 37,873,819
Investment adviser 2,193,457
Distributor 1,936,060
Dividends to shareholders 2,341 42,005,677
---------------
Accrued expenses and other liabilities 4,041,804
---------------
Total liabilities 46,047,481
---------------
Net Assets: Net assets $ 6,231,946,455
===============
Net Assets Shares of beneficial interest, $.10 par value,
Consist of: unlimited number of shares authorized $ 623,659,159
Paid-in capital in excess of par 5,612,932,426
Unrealized depreciation on investments--net (4,645,130)
---------------
Net Assets--Equivalent to $1.00 per share based on 6,236,591,585
shares of beneficial interest outstanding $ 6,231,946,455
===============
*Cost for Federal income tax purposes. As of December 31, 1999, net
unrealized depreciation for Federal income tax purposes amounted to
$4,645,130, of which $227,879 related to appreciated securities and
$4,873,009 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Year Ended
December 31, 1999
<S> <S> <C> <C>
Investment Income: Interest and amortization of premium and discount earned $ 345,831,237
Expenses: Investment advisory fees $ 23,553,991
Transfer agent fees 9,529,263
Distribution fees 7,533,473
Accounting services 344,997
Custodian fees 283,702
Printing and shareholder reports 237,228
Trustees' fees and expenses 170,306
Registration fees 141,512
Professional fees 98,320
Pricing services 4,690
Other 55,231
---------------
Total expenses 41,952,713
---------------
Investment income--net 303,878,524
---------------
Realized & Realized gain on investments--net 29,731
Unrealized Change in unrealized appreciation/depreciation on
Gain (Loss) on investments--net (4,886,813)
Investments--Net: ---------------
Net Increase in Net Assets Resulting from Operations $ 299,021,442
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year
Ended December 31,
Increase (Decrease) in Net Assets: 1999 1998
<S> <S> <C> <C>
Operations: Investment income--net $ 303,878,524 $ 359,882,046
Realized gain on investments--net 29,731 1,128,586
Change in unrealized appreciation/depreciation
on investments--net (4,886,813) 370,665
--------------- ---------------
Net increase in net assets resulting from operations 299,021,442 361,381,297
--------------- ---------------
Dividends & Investment income--net (303,878,524) (359,882,046)
Distributions to Realized gain on investments--net (29,731) (1,128,586)
Shareholders: --------------- ---------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (303,908,255) (361,010,632)
--------------- ---------------
Beneficial Net proceeds from sale of shares 11,670,524,324 13,077,395,532
Interest Net asset value of shares issued to shareholders in
Transactions: reinvestment of dividends and distributions 302,587,492 359,587,623
--------------- ---------------
11,973,111,816 13,436,983,155
Cost of shares redeemed (12,909,991,558) (13,210,307,466)
--------------- ---------------
Net increase (decrease) in net assets derived from
beneficial interest transactions (936,879,742) 226,675,689
--------------- ---------------
Net Assets: Total increase (decrease) in net assets (941,766,555) 227,046,354
Beginning of year 7,173,713,010 6,946,666,656
--------------- ---------------
End of year $ 6,231,946,455 $ 7,173,713,010
=============== ===============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 1999
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 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,
Operating beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Performance: ---------- ---------- ---------- ---------- ----------
Investment income--net .0464 .0497 .0503 .0491 .0538
Realized and unrealized gain
(loss) on investments--net (.0007) .0003 .0001 (.0003) .0016
---------- ---------- ---------- ---------- ----------
Total from investment operations .0457 .0500 .0504 .0488 .0554
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.0464) (.0497) (.0503) (.0491) (.0538)
Realized gain on investments--net --++ (.0002) --++ (.0001) (.0001)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.0464) (.0499) (.0503) (.0492) (.0539)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total investment return 4.74% 5.11% 5.16% 5.05% 5.53%
========== ========== ========== ========== ==========
Ratios to Average Expenses .64% .65% .65% .64% .67%
Net Assets: ========== ========== ========== ========== ==========
Investment income and realized
gain on investments--net 4.64% 5.01% 5.03% 4.88% 5.40%
========== ========== ========== ========== ==========
Supplemental Net assets, end of year
Data: (in thousands) $6,231,946 $7,173,713 $6,946,667 $7,096,260 $7,079,355
========== ========== ========== ========== ==========
++Amount is less than $.0001 per share.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
December 31, 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. 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, for which market quotations
are readily available, are valued at market value. As securities
transition from sixty-one to sixty days to maturity, the difference
between the valuation existing on the sixty-first day before
maturity and maturity value is amortized on a straight-line basis to
maturity. Securities maturing sixty days or less from their date of
acquisition are valued at amortized cost, which approximates market
value. For purposes of valuation, the maturity of a variable rate
security is deemed to be the next coupon date on which the interest
rate is to be adjusted. Other investments and assets for which
market quotations are not available are valued at 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. If the counterparty
defaults and the fair value of the collateral declines, liquidation
of the collateral by the Trust may be delayed or limited.
(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 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 .500%
In excess of $500 million but not exceeding $1 billion .400
In excess of $1 billion but not exceeding $5 billion .350
In excess of $5 billion but not exceeding $10 billion .325
In excess of $10 billion but not exceeding $15 billion .300
In excess of $15 billion but not exceeding $20 billion .275
In excess of $20 billion .250
Merrill Lynch Ready Assets Trust
December 31, 1999
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 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 .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 sold, reinvested and redeemed during the years
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares, value of shares
reinvested and cost of shares redeemed, respectively, since shares
are recorded at $1.00 per share.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
Merrill Lynch Ready Assets Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Ready Assets Trust as of December 31, 1999, the related statements
of operations for the year then ended, and changes in net assets for
each of the years in the two-year period then ended and the
financial highlights for each of the years in the five-year period
then ended. These financial statements and the financial highlights
are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at December
31, 1999 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Ready Assets Trust as of December 31, 1999, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in conformity
with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
February 14, 2000
</AUDIT-REPORT>
Merrill Lynch Ready Assets Trust
December 31, 1999
IMPORTANT TAX INFORMATION (unaudited)
None of the ordinary income distributions paid daily by Merrill
Lynch Ready Assets Trust during the fiscal year ended December 31,
1999 qualify for the dividends received deduction for corporations.
Additionally, the following table summarizes the long-term capital
gains distributions paid by the Trust during the year:
Payable Long-Term
Date Capital Gains
3/02/99 $.000010
12/30/99 $.000001
The law varies in each state as to whether and what percentage of
dividend income attributable to Federal obligations is exempt from
state income tax. We recommend that you consult your tax adviser to
determine if any portion of the dividends you received is exempt
from state income tax.
Listed below are the percentages of total assets of the Trust
invested in Federal obligations as of the end of each quarter of the
fiscal year.
Percentage of
For the Federal
Quarter Ended Obligations*
March 31, 1999 12.43%
June 30, 1999 12.30%
September 30, 1999 12.73%
December 31, 1999 10.91%
Of the Trust's ordinary income dividends paid during the fiscal year
ended December 31, 1999, 11.60% was attributable to Federal
obligations. In calculating the foregoing percentage, Trust expenses
have been allocated on a pro rata basis.
Please retain this information for your records.
*For purposes of this calculation, Federal obligations include US
Treasury Notes, US Treasury Bills and US Treasury Bonds. Also
included are obligations issued by the following agencies: Banks for
Cooperatives, Federal Intermediate Credit Banks, Federal Land Banks,
Federal Home Loan Banks, and the Student Loan Marketing Association.
Repurchase agreements are not included in this calculation.
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
M. Colyer Crum, Trustee
Laurie Simon Hodrick, 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
Donald Cecil and Edward H. Meyer, Trustees of Merrill Lynch Ready
Assets Trust have recently retired. The Fund's Board of Trustees
wishes Mr. Cecil and Mr. Meyer well in their retirements.
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
