CBA
CBA Money Fund
Annual Report
February 28, 1995
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
CBA Money Fund
Box 9011
Princeton, NJ 08543-9011
<PAGE>
CBA Money Fund
Dear Shareholder:
For the year ended February 28, 1995, CBA Money Fund paid
shareholders a net annualized dividend of 4.03%*. For the six-month
period ended February 28, 1995, the Fund's net annualized dividend
was 4.61%. The Fund's 7-day yield as of February 28, 1995 was 5.20%
(including gains and losses) and 5.19% (excluding gains and losses).
The Environment
The combination of heightened inflationary concerns, anticipation of
further tightening of monetary policy by the Federal Reserve Board,
the turmoil of the Mexican currency crisis and a weakening US dollar
all exerted negative influences on the US financial markets during
the six-month period ended February 28, 1995. On the positive side,
late in the period there were increasing signs that the US economy
may be losing momentum, suggesting that most of the interest rate
increases for this economic cycle may be behind us. As a result of
these economic crosscurrents, the US financial markets continued to
be volatile during the period.
The manufacturing sector proved to be the driving force behind the
US economy as 1994 drew to a close, making an important contribution
to the substantial increase in corporate earnings. US companies have
been successful at containing labor costs, which are an important
component of the inflation outlook. Growth in the economy has not
been translated into higher wages and benefits for US workers.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Consumer spending is growing at a slower pace than previous economic
recoveries, and was unchanged for the month of January. Another
encouraging sign was the January increase in the personal savings
rate to the highest level in two years. However, this is following
an all-time annual low for the savings rate in 1994.
In the weeks ahead, investors will continue to assess economic data
and inflationary trends in order to gauge whether inflationary
pressures have been tempered and the economy is headed for moderate
growth (a "soft landing"), or if the lagged effect of interest rate
rises will result in a curtailment of economic growth. Investors
will also focus on the progress that the new Congress makes on both
reducing spending and the Federal budget deficit and passing tax
cuts that promote savings and investment. At this time, the recent
defeat of the balanced budget amendment in the Senate does not bode
well for the passage of sweeping fiscal reforms.
<PAGE>
Portfolio Matters
Since our last report to shareholders, short-term interest rates
have risen in response to tightening by the Federal Reserve Board.
During the six-month period ended February 28, 1995, we maintained a
relatively defensive posture, with the portfolio's average life
ranging from a high of 65 days to a low of 37 days.
As September began, the market traded with a constructive tone
despite the Federal Reserve Board's August tightening, reflecting
the market's strong technical condition. We moved to take advantage
of the higher interest rate environment by extending the Fund's
average maturity to the high 50-day area by mid-month. We
accomplished this modest extension with purchases of securities with
early January maturities. Toward the end of September, we began to
build the Fund's overnight position, in deference to the late
September meeting of the Federal Open Market Committee (FOMC).
In early October, investors expressed their disappointment in the
Federal Reserve Board's decision not to tighten in September. In
this bearish environment, we continued the Fund's strategy of
building overnight liquidity and purchasing one-month commercial
paper. The Fund's average life stood at 47 days by mid-October.
With economic news moderating and the technicals favorable, the mood
of investors grew more positive. The belief that the Federal Reserve
Board would not tighten monetary policy until November brought a bid
back to the market. Taking advantage of a favorably sloped yield
curve, we purchased six-month and one-year Treasury bills, as well
as commercial paper maturing in early 1995. By October month-end,
the Fund's average life had returned to the low 60-day area.
In early November, a combination of increased supply and strong
economic news tempered our optimism. In preparation for the FOMC
meeting on November 15, 1994, we sold longer-term securities and
rebuilt overnight repurchase agreement positions. With the Fund's
average life at 50 days, the Federal Reserve Board moved to increase
the Federal Funds rate and discount rate by an aggressive 75 basis
points (0.75%).
In early December, the market was still adjusting to the aggressive
November tightening. Seeking to maintain an adequate liquidity
position to service shareholder needs at year-end, we reduced the
Fund's average life slightly.
Nonetheless, the short end of the market continued to benefit from
strong technicals which produced several trading opportunities. By
way of illustration, we sold February Treasury bills and bought
February Government agencies for a pickup of 70 basis points. By
December month-end, the average portfolio maturity was reduced to 44
days.
During the month of January, we maintained the Fund's modest
commitment to the market with the average life fluctuating between
45 days--50 days. Strong technicals and a steep yield curve
continued to provide attractive investment opportunities. We
purchased three-month and six-month securities which were attractive
relative to the very front end of the yield curve, which was
influenced by a low financing rate.
<PAGE>
February was greeted by the Federal Reserve Board's decision to
increase the Federal Funds and discount rates by 50 basis points.
Armed with weaker economic news, continued strong technicals and a
view that the Federal Reserve Board would now take a brief hiatus,
the short end rallied. By mid-month, we had extended the Fund's
average life to 60 days by investing in one-year securities.
Additionally, attractively priced Government agency floating rate
instruments were added to the portfolio.
Recent Humphrey-Hawkins testimony by Chairman Greenspan sent mixed
signals to the market. In the belief that the market has gotten
ahead of itself with the recent rally, we reduced the Fund's average
life to 50 days as of February 28, 1995.
The portfolio's composition at the end of the February period and as
of our last report is detailed below:
2/28/95 8/31/94
Bank Notes 0.7% 2.0%
Bankers' Acceptances--Yankee* 0.4 0.5
Certificates of Deposit--European 1.8 --
Certificates of Deposit--Yankee* 3.6 1.9
Commercial Paper 46.8 61.0
Corporate Notes 0.1 --
Master Notes 2.8 4.7
Repurchase Agreements 4.5 4.6
US Government & Agency
Obligations 39.0 28.2
Other Assets Less Liabilities 0.3 --
Liabilities in Excess of Other Assets -- (2.9)
------ ------
100.0% 100.0%
====== ======
[FN]
*US branches of foreign banks.
In Conclusion
We appreciate your continued support of CBA Money Fund, and we look
forward to assisting you with your financial needs in the months and
years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Carlo J. Giannini)
Carlo J. Giannini
Vice President and Portfolio Manager
March 30, 1995
<PAGE>
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Joseph T. Monagle, Jr.--Senior Vice President
Donald C. Burke--Vice President
Carlo J. Giannini--Vice President
Kevin J. McKenna--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
*For inquiries regarding your CBA account,
call (800) 247-6400.
CBA Money Fund
Schedule of Investments as of February 28, 1995 (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Bank Notes--0.7%
Nations Bank, N.A. $10,000 5.65 % 7/21/95 $ 9,971
(Carolinas)
<PAGE>
Total Bank Notes
(Cost--$ 9,993) 9,971
Bankers' Acceptances--Yankee--0.4%
Union Bank of 5,000 6.01 5/18/95 4,933
Switzerland
Total Bankers' Acceptances--Yankee
(Cost--$ 4,934) 4,933
Certificates of Deposit--European--1.8%
Commerzbank, NY 25,000 6.22 4/26/95 25,000
Total Certificates of Deposit--European
(Cost--$ 24,998) 25,000
Certificates of Deposit--Yankee--3.6%
Sanwa Bank Ltd. 25,000 6.04 3/27/95 25,000
Societe Generale, NY 25,000 6.05 4/03/95 25,001
Total Certificates of Deposit--Yankee
(Cost--$ 50,001) 50,001
Commercial Paper--46.8%
ABN-AMRO North 10,000 6.28 5/15/95 9,872
America Finance, Inc.
ANZ (Delaware), Inc. 1,000 6.32 8/08/95 972
APRECO, Inc. 25,000 5.97 3/27/95 24,888
AVCO Financial 25,000 5.82 3/06/95 24,976
Services, Inc.
American Express 25,000 5.96 3/29/95 24,880
Credit Corp.
American General 25,000 6.03 3/02/95 24,992
Corporation
BellSouth Capital Funding 5,500 6.20 4/05/95 5,466
Corporation
Beta Finance Inc. 10,000 5.20 3/13/95 9,978
10,000 5.65 3/13/95 9,978
<PAGE>
CXC Incorporated 1,486 6.00 3/17/95 1,482
Central & SouthWest 25,300 6.20 3/02/95 25,291
Corp.
Cheltenham & Glouster 25,000 6.27 4/05/95 24,846
Building Society
Deer Park Refining L.P. 15,000 6.05 3/06/95 14,985
20,000 6.00 3/13/95 19,957
10,991 6.02 3/13/95 10,967
4,000 6.00 3/27/95 3,982
CBA Money Fund
Schedule of Investments as of February 28, 1995 (continued)
(in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (concluded)
Eiger Capital Corp. $49,968 5.97 % 3/23/95 $ 49,777
Ford Motor Credit Co. 25,000 6.10 3/27/95 24,889
25,000 6.20 4/20/95 24,782
General Electric 20,000 5.55 4/10/95 19,860
Capital Corp. 10,000 5.56 4/10/95 9,930
Goldman Sachs 15,000 5.08 3/01/95 14,997
Group, L.P.
Hanson Finance 10,000 6.20 3/13/95 9,978
(UK) PLC 25,000 6.24 4/05/95 24,846
Matterhorn Capital Corp. 11,991 5.92 3/23/95 11,946
McKenna Triangle 25,000 6.30 8/02/95 24,336
National Corp.
New Center Asset 25,000 6.20 4/10/95 24,825
Trust 7,000 6.25 7/07/95 6,846
Nomura Holding 25,000 6.20 4/13/95 24,812
America, Inc. 25,000 6.12 4/17/95 24,795
15,000 6.10 5/16/95 14,805
<PAGE>
PNC Funding Corp. 15,000 5.73 4/26/95 14,855
Premium Funding, 6,481 6.00 3/14/95 6,466
Inc., Series A
Santander Finance 25,000 6.27 8/07/95 24,315
(Delaware) Inc.
South Australia 4,000 5.65 4/21/95 3,965
Government Financing
Authority
Svenska 25,000 6.28 4/05/95 24,846
Handelsbanken, Inc.
Transamerica Finance 10,000 6.00 3/17/95 9,972
Corp.
USL Capital Corp. 15,000 5.98 4/18/95 14,878
Vattenfall Treasury Inc. 10,000 5.98 3/30/95 9,950
Total Commercial Paper
(Cost--$ 658,171) 658,183
Corporate Notes--0.1%
CIT Group Holdings, 1,500 5.50 11/01/95 1,490
Inc. (The)
Total Corporate Notes
(Cost--$ 1,485) 1,490
Master Notes--2.8%
Goldman Sachs 40,000 6.05 5/26/95 40,000
Group, L.P.
Total Master Notes
(Cost--$ 40,000) 40,000
CBA Money Fund
Schedule of Investments as of February 28, 1995 (concluded)
(in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<PAGE>
US Government & Agency Obligations--
Discount Notes--9.7%
Federal Home Loan $25,000 5.58 % 4/21/95 $ 24,785
Banks
Federal National 40,000 6.10 5/03/95 39,576
Mortgage Association 25,000 5.97 7/26/95 24,383
US Treasury Bills 29,956 6.04 8/03/95 29,193
10,000 5.205 8/24/95 9,708
10,000 6.83 1/11/96 9,466
Total US Government & Agency
Obligations--Discount Notes
(Cost--$137,066) 137,111
US Government & Agency Obligations--
Non-Discount Notes--29.3%
Federal Home Loan 25,000 5.79 4/28/95 24,993
Banks 5,000 6.43++ 6/21/95 5,000
10,000 4.625 8/09/95 9,931
11,000 6.43++ 12/28/95 11,000
4,760 7.16 2/01/96 4,781
10,000 7.13 2/09/96 10,042
10,000 6.787 2/15/96 10,010
12,000 6.46++ 6/17/96 12,000
5,000 6.46++ 6/21/96 5,000
10,000 5.885++ 8/05/96 9,978
7,000 6.58++ 1/31/97 7,007
15,000 6.53++ 2/03/97 14,994
15,000 6.53++ 2/10/97 15,000
Federal Home Loan 10,000 4.635 8/09/95 9,932
Mortgage Corp. 12,000 5.93++ 9/01/95 11,999
Federal National 17,000 5.89 6/01/95 17,000
Mortgage Association++ 5,000 6.40 12/20/95 5,000
5,000 6.37 1/26/96 4,997
CBA Money Fund
Schedule of Investments as of February 28, 1995 (concluded)
(in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
<PAGE>
US Government & Agency Obligations--
Non-Discount Notes (concluded)
Federal National $20,000 6.01 % 2/07/96 $ 19,998
Mortgage Association++ 15,000 6.33 5/13/96 15,000
(concluded) 25,000 5.968 10/11/96 25,000
25,000 6.13 2/21/97 25,000
12,000 6.45 5/19/97 12,000
11,000 6.50 5/14/98 11,000
Student Loan Marketing 1,370 6.51 3/20/95 1,370
Association++ 3,430 6.51 3/20/95 3,430
8,500 6.26 8/07/95 8,500
33,000 6.26 3/20/96 33,000
10,000 6.09 5/14/96 10,009
20,000 5.968 9/20/96 20,000
10,000 6.27 1/14/97 10,000
US Treasury Notes 10,000 5.875 5/15/95 9,997
20,000 4.25 11/30/95 19,681
Total US Government & Agency Obligations--
Non-Discount Notes (Cost--$412,630) 412,649
Repurchase Agreements **--4.5%
Face Amount Issue
$63,450 HSBC Securities Inc., purchased
on 2/28/95 to yield 6.12%
to 3/01/95 63,450
Total Repurchase Agreements
(Cost--$63,450) 63,450
Total Investments (Cost--$1,402,728)--99.7% 1,402,788
Other Assets Less Liabilities--0.3% 3,527
----------
Net Assets--100.0% $1,406,315
==========
<PAGE>
[FN]
*Bankers' Acceptances, Commercial Paper and certain US Government &
Agency Obligations are traded on a discount basis; the interest
rates shown are the discount rates paid at the time of purchase by
the Fund. 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 those in effect at February 28,
1995.
**Repurchase Agreements are fully collateralized by US Government
Obligations.
++Variable Rate Notes.
See Notes to Financial Statements.
<TABLE>
CBA Money Fund
Statement of Assets and Liabilities as of February 28, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,402,728,018*) (Note 1a) $1,402,788,296
Cash 955
Interest receivable 4,622,164
Prepaid registration fees and other assets (Note 1d) 61,981
--------------
Total assets 1,407,473,396
--------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 425,483
Distributor (Note 2) 389,602
Beneficial interest redeemed 1,196 816,281
--------------
Accrued expenses and other liabilities 341,866
--------------
Total liabilities 1,158,147
--------------
Net Assets $1,406,315,249
==============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 140,625,497
Paid-in capital in excess of par 1,265,629,474
Unrealized appreciation on investments--net 60,278
--------------
<PAGE>
Net Assets--Equivalent to $1.00 per share based on 1,406,254,971 shares of beneficial
interest outstanding $1,406,315,249
==============
<FN>
*Cost for Federal income tax purposes. As of February 28, 1995, net
unrealized appreciation for Federal income tax purposes amounted to
$60,278, of which $315,937 related to appreciated securities and
$255,659 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CBA Money Fund
Statement of Operations for the Year Ended February 28, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 61,403,441
Expenses:
Investment advisory fees (Note 2) $ 5,722,106
Transfer agent fees (Note 2) 2,484,681
Distribution fees (Note 2) 1,581,431
Registration fees (Note 1d) 217,429
Printing and shareholder reports 190,037
Accounting services (Note 2) 107,165
Custodian fees 81,524
Professional fees 61,670
Trustees' fees and expenses 38,557
Other 9,690
--------------
Total expenses before reimbursement 10,494,290
Reimbursement of expenses (Note 2) (517,025)
--------------
Total expenses after reimbursement 9,977,265
--------------
Investment Income--Net 51,426,176
Realized Gain on Investments--Net (Note 1c) 19,884
Change in Unrealized Appreciation/Depreciation on Investments--Net 581,662
--------------
Net Increase in Net Assets Resulting from Operations $ 52,027,722
==============
</TABLE>
<PAGE>
<TABLE>
CBA Money Fund
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended
February 28,
1995 1994
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net $ 51,426,176 $ 31,634,870
Realized gain on investments--net 19,884 468,706
Change in unrealized appreciation/depreciation on investments--net 581,662 (935,673)
-------------- --------------
Net increase in net assets resulting from operations 52,027,722 31,167,903
-------------- --------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (51,426,176) (31,634,870)
Realized gain on investments--net (19,884) (468,706)
-------------- --------------
Net decrease in net assets resulting from dividends and distributions to
shareholders (51,446,060) (32,103,576)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 4,007,388,057 3,818,160,854
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 51,328,362 32,034,051
-------------- --------------
4,058,716,419 3,850,194,905
Cost of shares redeemed (3,940,438,831) (3,804,489,714)
-------------- --------------
Net increase in net assets derived from beneficial interest transactions 118,277,588 45,705,191
-------------- --------------
Net Assets:
Total increase in net assets 118,859,250 44,769,518
Beginning of year 1,287,455,999 1,242,686,481
-------------- --------------
End of year $1,406,315,249 $1,287,455,999
============== ==============
See Notes to Fianancial Highlights.
</TABLE>
<PAGE>
<TABLE>
CBA Money Fund
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived For the For the
from information provided in the financial statements. Year Ended Year Ended
For the Year Ended February 28, February 29, February 28,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Investment income--net .0396 .0260 .0304 .0511 .0736
Realized and unrealized gain (loss) on investments--net .0005 (.0004) .0017 .0008 .0006
---------- ---------- ---------- ---------- ----------
Total from investment operations .0401 .0256 .0321 .0519 .0742
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.0396) (.0260) (.0304) (.0511) (.0736)
Realized gain on investments--net (.0000)** (.0004) (.0014) (.0008)* (.0006)*
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.0396) (.0264) (.0318) (.0519) (.0742)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 4.03% 2.66% 3.24% 5.32% 7.69%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .65% .59% .59% .56% .57%
========== ========== ========== ========== ==========
Expenses, net of reimbursement .77% .71% .71% .69% .70%
========== ========== ========== ========== ==========
Expenses .81% .75% .75% .74% .75%
========== ========== ========== ========== ==========
Investment income and realized gain on
investments--net 3.98% 2.62% 3.19% 5.18%* 7.40%*
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $1,406,315 $1,287,456 $1,242,686 $1,211,833 $1,063,827
========== ========== ========== ========== ==========
<FN>
*Includes unrealized gain (loss).
**Amount is less than $.0001 per share.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CBA Money Fund
Notes to Financial Statements
1. Significant Accounting Policies:
CBA Money Fund (the "Fund") is a money fund whose shares are offered
to subscribers to the Capital Builder Account service of Merrill
Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") and to subscribers to
the Broadcort Capital Account service of Broadcort Capital Corp.
("Broadcort"). Shares may also be purchased by individual investors
not subscribing to these services, but such investors will not
receive any of the special features offered as a part of such
services. The Fund is registered under the Investment Company Act of
1940 as a diversified, open-end investment management company. The
following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of investments--Portfolio securities with remaining
maturities of sixty days or less are valued at amortized cost, which
approximates market value. Securities with remaining maturities of
greater than sixty days, for which market quotations are readily
available, will be valued at market value. When securities are
valued with sixty days or less to maturity, the difference between
the valuation existing on the sixty-first day before maturity and
maturity value is amortized on a straight-line basis to maturity.
Other securities held by the Fund will be valued at their fair value
as determined in good faith by or under the direction of the Board
of Trustees.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
its shareholders. Therefore, no Federal income tax provision is
required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Realized gains and losses on security
transactions are determined on the identified cost basis. Interest
income (including amortization of premium and discount) is
recognized on the accrual basis.
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends to shareholders--The Fund declares dividends daily and
reinvests daily such dividends (net of non-resident alien tax and
back-up withholding tax withheld) in additional Fund shares at net
asset value. Dividends are declared from the total of net investment
income and net realized gain or loss on investments.
<PAGE>
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM (the "Manager") is responsible for the management of the Fund's
portfolio and provides the necessary personnel, facilities,
equipment and certain other services necessary to the operations of
the Fund. For such services, the Fund pays a monthly fee based upon
the average daily value of the Fund's net assets at the following
annual rates: 0.50% of the first $500 million of average daily net
assets, 0.425% of average daily net assets in excess of $500 million
but not exceeding $1 billion, and 0.375% of average daily net assets
in excess of $1 billion. The most restrictive annual expense
limitation requires that the Manager reimburse the Fund in any
amount necessary to prevent such operating expenses of the Fund
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) from exceeding in any fiscal
year 2.5% of the Fund's first $30 million of average daily net
assets, 2.0% of the next $70 million of average daily net assets,
and 1.5% of the remaining average daily net assets. No fee payment
will be made to the Manager during the year which will cause such
expenses to exceed the pro rata expense limitation at the time of
such payment. During the year ended February 28, 1995, the Manager
earned $5,722,106, of which $517,025 was voluntarily waived.
Notes to Financial Statements
(concluded)
The Fund has adopted a Distribution and Shareholder Servicing Plan
in compliance with Rule 12b-1 under the Investment Company Act of
1940, pursuant to which MLPF&S and Broadcort each receive a
distribution fee under the Distribution Agreement from the Fund at
the end of each month at the annual rate of 0.125% of average daily
net assets of the Fund attributable to subscribers to the respective
Capital Builder Account and Broadcort Capital Account programs. The
MLPF&S distribution fee is to compensate MLPF&S financial
consultants and other directly involved branch office personnel for
selling shares of the Fund and for providing direct personal
services to shareholders. The Broadcort distribution fee is to
compensate selected dealers for activities and services related to
the sale, promotion and marketing of shares of the Fund. The
distribution fee is not compensation for the administrative and
operational services rendered to the Fund by MLPF&S or Broadcort in
processing share orders and administering shareholder accounts.
<PAGE>
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, FDS, MLPF&S, and/or ML & Co.
3. Beneficial Interest Transactions:
The number of shares purchased and redeemed during the year
corresponds to the amounts included in the Statements of Changes in
Net Assets with respect to net proceeds from sale of shares and cost
of shares redeemed, respectively, since shares are recorded at $1.00
per share.
<AUDIT-REPORT>
CBA Money Fund
Independent Auditors' Report
The Board of Trustees and Shareholders,
CBA Money Fund:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of CBA Money
Fund as of February 28, 1995, 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 Fund'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 February
28, 1995 by correspondence with the custodian and brokers. 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
CBA Money Fund as of February 28, 1995, 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
March 31, 1995
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CBA Money Fund
Important Tax Information (unaudited)
None of the ordinary income distributions paid daily by CBA Money
Fund during the year ended February 28, 1995 qualify for the
dividends received deduction for corporations. Additionally, there
were no long-term capital gains distributions paid during the year.
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 Fund
invested in Federal obligations as of the end of each quarter of the
fiscal year:
For the Percentage of
Quarter Ended Federal Obligations++
May 31, 1994 24.67%
August 31, 1994 18.31
November 30, 1994 21.07
February 28, 1995 23.37
Of the Fund's ordinary income dividends paid during the year ended
February 28, 1995, 21.82% was attributable to Federal obligations.
In calculating the foregoing percentage, expenses of the Fund have
been allocated on a pro-rata basis.
Please retain this information for your records.
[FN]
++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.
