MERRILL LYNCH
READY ASSETS
TRUST
FUND LOGO
Semi-Annual Report
June 30, 2000
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, 2000
DEAR SHAREHOLDER
For the six months ended June 30, 2000, Merrill Lynch Ready Assets
Trust paid shareholders a net annualized dividend of 5.58%*. The
Trust's 7-day yield as of June 30, 2000 was 6.00%.
The average portfolio maturity for Merrill Lynch Ready Assets Trust
at June 30, 2000 was 60 days, compared to 57 days at December 31,
1999.
The Environment
As 1999 drew to a close, the Federal Reserve Board took
extraordinary steps to ensure liquidity in the financial markets.
The Federal Reserve Board tightened monetary policy once during the
last quarter of 1999, but adopted a neutral bias through the year
end in an effort to reassure investors and eliminate uncertainty.
However, growth remained strong and two additional 25 basis point
(0.25%) interest rate increases were implemented in February and
March 2000. At that time, the US Treasury also announced anticipated
changes to the auction schedule. The Federal budget surplus has made
it necessary to decrease the amount of securities sold by the
Treasury, therefore the changes will include reduced auctions,
reduced auction sizes, and a buy-back program (the Treasury intends
to buy back old, off-the-run, less liquid issues in order to keep
current issues liquid). The announcement caused unintended results,
as the yield curve inverted dramatically as investors rushed to buy
the longer-term issues.
At this time, it is unclear when this technical inversion will be
unwound, as it seems likely that further short-term interest rate
increases could be forthcoming as long as the current economic
momentum continues. Although Treasury yields fell sharply, other
fixed-income asset classes did not participate to the same extent.
In addition, the business practices of Government-sponsored agencies
were placed under scrutiny by Congress, which pressured quality
spreads across the yield curve.
In early May, investors began to price in a 50 basis point move,
with a greater probability of more increases later in the summer.
New home sales grew by an alarming 966,000 pace and the unemployment
rate fell to 3.9%. Citing the risk of accelerating inflation, the
Federal Reserve Board increased interest rates by 50 basis points at
its meeting on May 16, 2000. During the month of June, consumer
confidence declined (falling from 144.7 to 138.8). Despite the
larger-than-expected decline, the level of confidence in June was
modestly higher than the 137.7 reading in April 2000. Additionally,
new home sales in April were revised to 877,000 units from 909,000.
In May 2000, new home sales fell to 875,000 units, offering further
evidence of softening housing activity. Therefore, with these signs
of more moderate economic growth, we believe that the Federal
Reserve Board will move more slowly in restricting monetary policy
going forward.
Portfolio Matters
During the six-month period ended June 30, 2000, we maintained a
conservative approach because of the rising interest rate
environment. We adopted a barbell strategy incorporating one-month
and two-month commercial paper with one-year bank certificates of
deposit. We also increased the Trust's position in floating rate
notes since we believe they will continue to provide some protection
to the Trust against rising interest rates.
The Trust's composition at the end of June and as of our last report
is detailed below:
6/30/00 12/31/99
Bank Notes 4.3% 5.8%
Certificates of Deposit 2.4 0.7
Certificates of Deposit - European 0.2 --
Certificates of Deposit - Yankee++ 12.6 8.1
Commercial Paper 47.0 47.7
Corporate Notes 11.0 11.2
Funding Agreements 2.8 2.4
Master Notes -- 0.3
Promissory Notes 4.6 4.4
Time Deposits -- 3.9
US Government, Agency & Instrumentality
Obligations--Discount 3.3 0.8
US Government, Agency & Instrumentality
Obligations--Non-Discount 12.3 14.8
Liabilities in Excess of Other Assets (0.5) (0.1)
------ ------
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
August 1, 2000
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Merrill Lynch Ready Assets Trust
June 30, 2000
Merrill Lynch Ready Assets Trust
June 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Bank Notes--4.3%
American Express $21,000 6.75++% 7/13/2000 $ 21,000
Centurion Bank 50,000 6.66++ 3/07/2001 50,000
Banc One IL, NA 25,000 6.94 12/29/2000 24,997
Bank of America NA 50,000 6.65++ 6/06/2001 49,991
Comerica Bank 40,000 6.64++ 6/01/2001 39,989
First USA Bank, NA 10,000 6.215 10/18/2000 9,973
Fleet National Bank 25,000 6.71++ 7/13/2000 25,000
National City 20,000 6.67 3/13/2001 19,931
Bank--Pennsylvania
US Bank NA 15,000 6.88 4/04/2001 14,963
Total Bank Notes (Cost--$255,971) 255,844
Certificates of Deposit--2.4%
Banc One Chicago, 30,000 6.087 10/06/2000 29,898
IL, NA
First Tennessee 40,000 6.67++ 12/11/2000 40,000
Bank NA
First Union 20,000 6.75++ 7/19/2000 20,000
National Bank 25,000 6.728++ 8/31/2000 24,945
Old Kent Bank 25,000 6.65++ 4/30/2001 24,996
Total Certificates of Deposit (Cost--$139,993) 139,839
Certificates of Deposit--European--0.2%
Norddeutsche 10,000 6.90 4/30/2001 9,978
Landesbank
Girozentrale, Germany
Total Certificates of Deposit--European
(Cost--$9,998) 9,978
Certificates of Deposit--Yankee--12.6%
Bank Austria AG, NY 25,000 6.65++ 7/05/2001 24,995
Bank of Nova 20,000 6.55 1/24/2001 19,932
Scotia, NY 35,000 6.87 4/03/2001 34,928
Banque National de 20,000 6.68 3/13/2001 19,935
Paris, NY
Bayerische Hypo und- 20,000 6.665 3/08/2001 19,934
Vereinsbank AG, NY 30,000 6.80 3/28/2001 29,924
Bayerische 25,000 6.595++ 11/09/2000 24,994
Landesbank 25,000 6.585++ 2/28/2001 24,992
Girozentrale, NY
Commerzbank AG, 25,000 5.77 7/03/2000 24,998
NY 34,500 6.76 3/27/2001 34,403
Merrill Lynch Ready Assets Trust
June 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Certificates of Deposit--Yankee (concluded)
Credit Agricole $25,000 6.616++% 11/08/2000 $ 24,995
Indosuez, NY 30,000 6.644++ 11/29/2000 29,991
Deutsche Bank AG, 30,000 6.00 11/13/2000 29,880
NY
Dresdner Bank AG, 25,000 6.65 3/06/2001 24,915
NY
Royal Bank of 25,000 6.45 1/05/2001 24,909
Canada, NY 15,000 6.525 1/16/2001 14,948
50,000 6.62++ 6/07/2001 49,977
25,000 6.615++ 7/06/2001 24,986
Societe Generale, NY 30,000 6.61++ 11/09/2000 29,992
Svenska Handels- 20,000 6.73 2/09/2001 19,948
banken AB, NY 25,000 6.67 3/02/2001 24,919
25,000 6.65 3/06/2001 24,915
35,000 6.74 3/16/2001 34,902
UBS AG, NY 30,000 6.06 11/20/2000 29,882
35,000 6.85 3/28/2001 34,924
Unibank A/S, NY 25,000 6.81 4/11/2001 24,937
20,000 6.80 4/17/2001 19,946
Westpac Banking 30,000 6.74 3/20/2001 29,913
Corp., NY
Total Certificates of Deposit--Yankee
(Cost--$759,288) 757,914
Commercial Paper--47.0%
AT&T Corp. 15,000 6.24 7/13/2000 14,998
20,000 6.566 3/08/2001 19,997
Amsterdam Funding 10,000 6.59 7/17/2000 9,969
Corp. 22,000 6.60 7/20/2000 21,919
25,000 6.66 8/01/2000 24,852
25,000 6.59 8/11/2000 24,808
25,000 6.58 8/14/2000 24,794
18,000 6.58 8/18/2000 17,840
Apreco, Inc. 32,120 6.62 7/25/2000 31,972
18,000 6.58 8/01/2000 17,895
9,750 6.59 8/15/2000 9,669
Asset Securitization 25,000 6.53 7/11/2000 24,950
Coop. Corp. 10,000 6.60 7/12/2000 9,978
Atlantis One Funding 40,000 6.58 7/06/2000 39,956
Corp.
BAESystems PLC 35,000 6.60 9/13/2000 34,520
BBL North America 16,000 6.62 9/06/2000 15,801
Funding Corp.
Bear Stearns 25,000 6.60 9/14/2000 24,652
Companies, Inc. 25,000 6.60 9/15/2000 24,648
Merrill Lynch Ready Assets Trust
June 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Commercial Paper (continued)
COFCO Capital $25,000 6.57% 8/18/2000 $ 24,776
Corp. 10,000 6.58 8/18/2000 9,911
CXC Incorporated 50,000 6.60 7/12/2000 49,890
30,000 6.58 8/02/2000 29,819
12,745 6.67 8/09/2000 12,651
Centric Capital Corp. 20,662 6.13 7/03/2000 20,651
17,600 6.62 7/12/2000 17,561
30,000 6.61 9/14/2000 29,583
Clipper Receivables 25,000 6.58 8/08/2000 24,822
Corp. 20,000 6.58 8/09/2000 19,852
Corporate Asset 20,000 6.59 7/19/2000 19,930
Funding Co., Inc. 35,000 6.60 7/20/2000 34,872
Corporate 35,000 6.57 8/08/2000 34,751
Receivables Corp.
Credit Suisse 10,000 6.61 9/11/2000 9,866
First Boston, 20,000 6.64 12/14/2000 19,386
International
(Guernsey) Ltd.
DaimlerChrysler 20,000 6.61 7/28/2000 19,897
North America 25,000 6.60 9/19/2000 24,630
Holdings Corp. 25,000 6.60 9/20/2000 24,625
Delaware Funding 30,538 6.53 7/10/2000 30,483
Corp.
Den Danske Corp. 25,000 6.60 7/26/2000 24,881
Den Norske Bank 25,000 6.60 9/19/2000 24,630
ASA
Edison Asset 25,000 6.60 7/12/2000 24,945
Securitization, LLC 19,588 6.54 7/13/2000 19,542
25,000 6.60 7/18/2000 24,918
25,000 6.60 7/24/2000 24,890
20,000 6.60 7/25/2000 19,908
30,000 6.61 7/27/2000 29,851
25,000 6.57 8/10/2000 24,813
20,000 6.57 8/14/2000 19,836
20,000 6.57 8/16/2000 19,828
Enterprise Funding 20,000 6.61 7/24/2000 19,912
Corp.
Eureka Securitization 25,000 6.62 7/24/2000 24,890
Inc. 25,000 6.55 7/26/2000 24,882
Merrill Lynch Ready Assets Trust
June 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Commercial Paper (continued)
FCE Bank PLC $35,000 6.77% 7/06/2000 $ 34,961
Fleet Funding 20,000 6.60 7/12/2000 19,956
Corporation 27,141 6.60 7/17/2000 27,056
9,368 6.61 7/17/2000 9,339
Ford Motor Credit 15,000 6.72 7/05/2000 14,986
Company
Formosa Plastics 10,000 6.61 9/11/2000 9,866
Corporation, USA, 28,000 6.61 9/12/2000 27,621
Series B
Fortis Funding LLC 21,473 6.62 7/26/2000 21,370
GE Capital 25,000 6.60 7/17/2000 24,922
International 25,000 6.60 7/18/2000 24,918
Funding, Inc.
General Electric 35,000 6.221 10/04/2000 34,986
Capital Corp.
General Motors 30,000 6.59 7/18/2000 29,901
Acceptance Corp. 30,000 6.60 7/24/2000 29,868
25,000 6.60 7/25/2000 24,884
30,000 6.60 7/27/2000 29,852
Kitty Hawk Funding 25,000 6.56 7/21/2000 24,904
Corp. 30,000 6.60 7/24/2000 29,868
25,000 6.56 7/27/2000 24,877
25,000 6.62 8/07/2000 24,825
20,000 6.62 8/10/2000 19,849
25,000 6.63 9/11/2000 24,666
Mont Blanc Capital 27,658 6.61 7/24/2000 27,537
Corp. 20,000 6.61 9/15/2000 19,718
Monte Rosa Capital 15,000 6.53 7/10/2000 14,973
Corporation 33,842 6.59 7/11/2000 33,774
35,000 6.57 7/19/2000 34,878
20,000 6.58 8/02/2000 19,879
Morgan Stanley, 4,886 6.70 7/05/2000 4,881
Dean Witter, 20,000 6.58 7/18/2000 19,934
Discover & Co.
National Rural 15,000 5.99 7/05/2000 14,987
Utilities Cooperative
Finance Corp.
Merrill Lynch Ready Assets Trust
June 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Commercial Paper (concluded)
Old Line Funding $14,721 6.57% 7/14/2000 $ 14,683
Corp. 30,000 6.61 7/14/2000 29,923
25,000 6.60 7/19/2000 24,913
25,000 6.60 7/20/2000 24,908
17,171 6.59 8/01/2000 17,070
18,000 6.58 8/02/2000 17,891
17,600 6.58 8/03/2000 17,491
Salomon, Smith 20,000 6.59 7/20/2000 19,927
Barney Holdings, 25,000 6.60 7/21/2000 24,904
Inc. 25,000 6.60 7/25/2000 24,884
25,000 6.60 7/27/2000 24,877
25,000 6.60 9/21/2000 24,620
San Paolo US 25,000 6.57 8/07/2000 24,827
Financial Company
Tulip Funding Corp. 25,000 6.62 9/13/2000 24,657
18,191 6.63 9/13/2000 17,942
UBS Finance 32,680 7.10 7/05/2000 32,648
Delaware Inc.
Variable Funding 30,000 6.59 7/14/2000 29,923
Capital Corp. 20,000 6.62 8/22/2000 20,000
25,000 6.621 8/24/2000 25,000
15,000 6.58 8/29/2000 14,836
20,000 6.581 8/30/2000 20,000
20,000 6.585 8/31/2000 20,000
19,000 6.62 9/07/2000 18,760
50,000 6.61 9/08/2000 49,360
20,000 6.63 9/12/2000 19,729
25,000 6.62 9/13/2000 24,657
20,000 6.60 9/14/2000 19,722
WCP Funding Inc. 25,000 6.57 8/01/2000 24,854
25,000 6.59 8/08/2000 24,822
Windmill Funding 20,000 6.54 7/13/2000 19,953
Corp. 25,000 6.59 7/20/2000 24,908
20,000 6.60 7/21/2000 19,923
10,000 6.60 7/26/2000 9,952
25,000 6.59 7/28/2000 24,872
16,265 6.60 7/28/2000 16,182
25,000 6.58 8/18/2000 24,776
25,000 6.61 9/06/2000 24,689
25,000 6.60 9/18/2000 24,634
25,000 6.60 9/20/2000 24,625
25,000 6.60 9/21/2000 24,620
Woolwich PLC 20,000 6.64 12/18/2000 19,371
Total Commercial Paper (Cost--$2,819,254) 2,819,269
Merrill Lynch Ready Assets Trust
June 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Corporate Notes--11.0%
Abbey National $25,000 6.00% 11/20/2000 $ 24,900
Treasury Services
PLC
American Honda 35,000 6.663++ 8/03/2000 34,999
Finance Corp. 25,000 6.79++ 6/12/2001 24,995
Associates 40,000 6.55++ 3/16/2001 39,983
Corporation of 16,000 6.773++ 6/26/2001 15,994
North America
CIT Group Holdings, 25,000 6.80++ 9/15/2000 24,995
Inc. (The) 35,000 6.609++ 3/27/2001 34,982
40,000 6.64++ 5/09/2001 39,983
Citigroup 40,000 6.605++ 6/06/2001 40,000
Ford Motor Credit 20,000 6.27++ 10/02/2000 20,001
Company 40,000 6.631++ 11/24/2000 39,992
General Motors 15,000 5.75 7/28/2000 14,988
Acceptance Corp. 20,000 6.28++ 10/06/2000 20,000
25,000 6.99++ 12/01/2000 25,013
21,000 6.858 2/27/2001 20,995
25,000 6.553++ 7/09/2001 24,985
Goldman Sachs 16,000 6.40++ 7/13/2001 15,996
Group, Inc.
Household Finance 25,000 6.715++ 7/20/2001 24,988
Corp.
Morgan Stanley, 30,000 6.781++ 1/22/2001 30,005
Dean Witter,
Discover & Co.
Restructured Asset 20,500 6.699++ 8/11/2000 20,500
Securities with
Enhanced
Returns, Series
1998-MM-7-1
Trust
SAVES-99-1-1 15,000 6.39++ 10/04/2000 15,000
SMM Trust, Series 25,300 6.845++ 9/25/2000 25,300
1999-H
Xerox Capital 25,000 6.221++ 7/19/2000 24,993
(Europe) PLC
Xerox Corp. 57,500 5.70 7/26/2000 57,469
Total Corporate Notes (Cost--$661,178) 661,056
Merrill Lynch Ready Assets Trust
June 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Funding Agreements--2.8%
Jackson National $80,000 6.691++% 5/01/2001 $ 80,000
Life Insurance Co.
Metropolitan Life 50,000 6.711++ 5/01/2001 50,000
Insurance Company
Monumental Life 20,000 6.786++ 11/17/2000 20,000
Insurance Company
Pacific Mutual Life 20,000 6.721++ 1/31/2001 20,000
Insurance Co.
Total Funding Agreements (Cost--$170,000) 170,000
Promissory Notes--4.6%
Goldman Sachs 150,000 6.711++ 7/07/2000 150,000
Group, Inc. 125,000 6.711++ 8/04/2000 125,000
Total Promissory Notes (Cost--$275,000) 275,000
US Government, Agency & Instrumentality
Obligations--Discount--3.3%
Federal Home Loan 15,000 6.10 3/12/2001 14,314
Banks 30,000 6.11 3/16/2001 28,607
3,541 6.11 3/19/2001 3,375
20,000 6.24 3/23/2001 19,046
20,000 6.70 5/15/2001 18,858
Federal Home Loan 10,000 5.39 8/04/2000 9,940
Mortgage Corporation 9,500 6.18 3/29/2001 9,037
10,000 6.21 3/29/2001 9,514
15,000 6.23 3/29/2001 14,270
15,000 6.28 3/29/2001 14,270
20,000 6.22 4/26/2001 18,969
Federal National 15,000 6.65 11/03/2000 14,666
Mortgage Association 10,000 6.70 5/18/2001 9,423
US Treasury Bills 15,000 4.94 9/14/2000 14,828
Total US Government, Agency & Instrumentality
Obligations--Discount (Cost--$199,283) 199,117
Merrill Lynch Ready Assets Trust
June 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
US Government, Agency & Instrumentality
Obligations--Non-Discount--12.3%
Federal Home $25,000 6.304++% 7/14/2000 $ 25,000
Loan Banks 40,000 6.364++ 11/09/2001 40,000
Federal Home Loan 25,000 6.344++ 7/14/2000 25,000
Mortgage Corporation 20,000 5.05 11/17/2000 19,874
15,000 5.18 11/24/2000 14,908
19,500 5.15 1/26/2001 19,323
20,000 5.125 2/08/2001 19,803
10,000 5.18 2/09/2001 9,904
40,000 6.164++ 9/17/2001 39,965
Federal National 20,000 6.374++ 7/21/2000 20,000
Mortgage Association 30,000 6.374++ 8/02/2000 29,997
10,000 5.07 12/14/2000 9,926
20,000 5.21 1/26/2001 19,825
50,000 6.374++ 3/07/2001 50,000
20,000 5.41 3/22/2001 19,803
50,000 6.53++ 5/24/2001 50,000
15,000 6.00 7/17/2001 14,877
40,000 6.144++ 9/17/2001 39,963
25,000 6.354++ 4/19/2002 25,000
Student Loan 50,000 6.493++ 9/29/2000 49,996
Marketing 50,000 6.494++ 9/29/2000 49,998
Association 35,000 6.497++ 10/02/2000 34,995
40,000 6.364++ 8/23/2001 39,982
US Treasury Notes 40,000 6.125 7/31/2000 40,006
20,000 4.50 9/30/2000 19,913
10,000 4.625 11/30/2000 9,928
Total US Government, Agency & Instrumentality
Obligations--Non-Discount
(Cost--$739,438) 737,986
Total Investments (Cost--$6,029,403)--100.5% 6,026,003
Liabilities in Excess of Other Assets--(0.5%) (31,300)
----------
Net Assets--100.0% $5,994,703
==========
*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; the interest rates shown are the rates in
effect at June 30, 2000.
++Variable rate notes.
See Notes to Financial Statements.
Merrill Lynch Ready Assets Trust
June 30, 2000
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of June 30, 2000
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$6,029,403,021*) $ 6,026,002,739
Receivables:
Interest $ 32,251,203
Beneficial interest sold 1,082,607 33,333,810
---------------
Prepaid registration fees and other assets 219,077
---------------
Total assets 6,059,555,626
---------------
Liabilities: Payables:
Beneficial interest redeemed 32,875,815
Securities purchased 24,986,250
Distributor 2,319,542
Investment adviser 1,676,670
Dividends to shareholders 1,243 61,859,520
---------------
Accrued expenses and other liabilities 2,992,906
---------------
Total liabilities 64,852,426
---------------
Net Assets: Net assets $ 5,994,703,200
===============
Net Assets Shares of beneficial interest, $.10 par value, unlimited number of
Consist of: shares authorized $ 599,810,348
Paid-in capital in excess of par 5,398,293,134
Unrealized depreciation on investments--net (3,400,282)
---------------
Net Assets--Equivalent to $1.00 per share based on 5,998,103,482
shares of beneficial interest outstanding $ 5,994,703,200
===============
*Cost for Federal income tax purposes. As of June 30, 2000, net
unrealized depreciation for Federal income tax purposes amounted to
$3,400,282, of which $166,671 related to appreciated securities and
$3,566,953 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months
Ended June 30, 2000
<S> <S> <C> <C>
Investment Income: Interest and amortization of premium and discount earned $ 192,601,400
Expenses: Investment advisory fees $ 11,239,778
Transfer agent fees 4,187,606
Distribution fees 3,516,417
Accounting services 188,791
Printing and shareholder reports 148,512
Custodian fees 76,771
Registration fees 71,677
Trustees' fees and expenses 71,097
Professional fees 49,803
Pricing services 6,436
Other 42,134
---------------
Total expenses 19,599,022
---------------
Investment income--net 173,002,378
---------------
Realized & Realized loss on investments--net (150,399)
Unrealized Change in unrealized depreciation on investments--net 1,244,848
Gain (Loss) on ---------------
Investments--Net: Net Increase in Net Assets Resulting from Operations $ 174,096,827
===============
See Notes to Financial Statements.
</TABLE>
<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: 2000 1999
<S> <S> <C> <C>
Operations: Investment income--net $ 173,002,378 $ 303,878,524
Realized gain (loss) on investments--net (150,399) 29,731
Change in unrealized appreciation/depreciation on
investments--net 1,244,848 (4,886,813)
--------------- ---------------
Net increase in net assets resulting from operations 174,096,827 299,021,442
--------------- ---------------
Dividends & Investment income--net (172,851,979) (303,878,524)
Distributions to Realized gain on investments--net -- (29,731)
Shareholders: --------------- ---------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (172,851,979) (303,908,255)
--------------- ---------------
Beneficial Net proceeds from sale of shares 5,945,593,393 11,670,524,324
Interest Net asset value of shares issued to shareholders in
Transactions: reinvestment of dividends and distributions 172,052,558 302,587,492
--------------- ---------------
6,117,645,951 11,973,111,816
Cost of shares redeemed (6,356,134,054) (12,909,991,558)
--------------- ---------------
Net decrease in net assets derived from beneficial interest
transactions (238,488,103) (936,879,742)
--------------- ---------------
Net Assets: Total decrease in net assets (237,243,255) (941,766,555)
Beginning of period 6,231,946,455 7,173,713,010
--------------- ---------------
End of period $ 5,994,703,200 $ 6,231,946,455
=============== ===============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 2000
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the Six
The following per share data and ratios have been derived Months Ended
from information in the financial statements. June 30, For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of
Operating period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Performance: ---------- ---------- ---------- ---------- ----------
Investment income--net .0276 .0464 .0497 .0503 .0491
Realized and unrealized gain (loss) on
investments--net .0002 (.0007) .0003 .0001 (.0003)
---------- ---------- ---------- ---------- ----------
Total from investment operations .0278 .0457 .0500 .0504 .0488
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.0276) (.0464) (.0497) (.0503) (.0491)
Realized gain on investments--net -- --++ (.0002) --++ (.0001)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.0276) (.0464) (.0499) (.0503) (.0492)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total investment return 5.58%* 4.74% 5.11% 5.16% 5.05%
========== ========== ========== ========== ==========
Ratios to Average Expenses .63%* .64% .65% .65% .64%
Net Assets: ========== ========== ========== ========== ==========
Investment income and realized gain
on investments--net 5.54%* 4.64% 5.01% 5.03% 4.88%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period
Data: (in thousands) $5,994,703 $6,231,946 $7,173,713 $6,946,667 $7,096,260
========== ========== ========== ========== ==========
++Amount is less than $.0001 per share.
*Annualized.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Ready Assets Trust
June 30, 2000
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 accounting principles generally accepted
in the United States of America, 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, 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 Investment Managers, L.P. ("MLIM"). The general
partner of MLIM 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 FAM Distributors,
Inc. ("FAMD" or the "Distributor"), which is a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
MLIM 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%
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 MLIM at cost.
Certain officers and/or trustees of the Trust are officers and/or
directors of MLIM, FDS, PSI, FAMD, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares sold, reinvested and redeemed during the
periods 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.
Merrill Lynch Ready Assets Trust
June 30, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
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
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
