CBA
CBA
CBA
CBA
CBA Money Fund
Annual Report
February 29, 1996
<PAGE>
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. Statements and
other information herein are as dated and are subject to change.
CBA Money Fund
Box 9011
Princeton, NJ 08543-9011
CBA Money Fund
Dear Shareholder:
For the year ended February 29, 1996, CBA Money Fund paid
shareholders a net annualized dividend of 5.38%*. For the six-month
period ended February 29, 1996, the Fund's net annualized dividend
was 5.17%*. The Fund's 7-day yield as of February 29, 1996 was
4.74%.
The average portfolio maturity for CBA Money Fund at February 29,
1996 was 80 days, compared to 85 days at August 31, 1995.
<PAGE>
The Environment
Throughout most of the six-month period ended February 29, 1996, it
appeared that the US economy was losing momentum. Consumer spending
was barely growing and the industrial sector was at a virtual
standstill. With inflationary pressures subdued, the Federal Reserve
Board responded to the slowing economy by continued modest monetary
policy easing. However, toward the end of the six-month period, a
series of economic releases began to suggest that economic activity
would not continue to be as sluggish as originally expected. A surge
in auto sales and factory orders, rising consumer confidence and
strong housing starts led some investors to believe that economic
activity was again accelerating and further easing by the Federal
Reserve Board unlikely. These concerns were highlighted in early
March with the report of a sharp increase in new jobs in February
and a drop in unemployment. In the weeks ahead, it is likely that
investors will continue to monitor economic data releases closely as
they attempt to gauge the US economy's progress.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
The impasse between the Clinton Administration and Congress over the
Federal budget continues. However, both sides have made concessions
since the debate began. It appears that investors are currently
focusing on the progress that has been made rather than on the
differences that remain. Initially, President Clinton proposed
deficits of about $190 billion annually through fiscal year 2002. He
now proposes balanced budgets, as do the Republicans. Furthermore,
even without policy changes, it appears that the US Federal budget
deficit should remain stable at about 2% of gross domestic product
for the rest of the decade. This is far better than is the case for
most Group of Seven industrial nations and a great improvement over
the last 15 years. Nevertheless, current indications are that a
piecemeal budget accord is the most likely outcome. Although this
may fall short of investors' best expectations, it appears that the
Federal budget debate over the past year has resulted in a trend
toward a more conservative fiscal policy.
For much of the six-month period ended February 29, 1996, a weak
economy and a steep yield curve encouraged us to maintain a
relatively aggressive investment posture. However, in response to
recent evidence of a recovering economy and a significant flattening
of the front end of the yield curve, we moved to reduce the Fund's
average maturity.
The portfolio's composition at the end of the February period and as
of our last report is detailed below:
<PAGE>
2/29/96 8/31/95
Bank Notes 2.3% --
Bankers' Acceptances--Yankee* -- --
Certificates of Deposit--
European 1.8 1.8%
Certificates of Deposit--Yankee* 0.4 9.5
Commercial Paper 48.9 44.9
Corporate Notes 5.0 2.6
Master Notes 2.0 2.3
Repurchase Agreements 4.7 3.6
US Government & Agency
Obligations 34.3 36.5
Other Assets Less Liabilities 0.6 --
Liabilities in Excess of
Other Assets -- (1.2)
------ ------
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
April 2, 1996
CBA Money Fund
Important Tax Information (unaudited)
<PAGE>
None of the ordinary income distributions paid daily by CBA Money
Fund during the year ended February 29, 1996 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, 1995 21.37%
August 31, 1995 19.86
November 30, 1995 21.71
February 29, 1996 21.48
Of the Fund's ordinary income dividends paid during the year ended
February 29, 1996, 23.91% 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.
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
<PAGE>
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CBA account,call (800) 247-6400.
CBA Money Fund
Schedule of Investments as of February 29, 1996 (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Bank Notes--2.3%
Banc One, $10,000 5.26++% 8/28/96 $ 9,998
Milwaukee
10,000 5.26 9/05/96 9,997
25,000 5.37 2/06/97 24,991
Total Bank Notes (Cost--$44,986) 44,986
Bankers' Acceptances--0.0%
Bank of America 1,000 5.18 6/03/96 986
N.T. & S.A.
Total Bankers' Acceptances
(Cost--$986) 986
Certificates of Deposit--European--1.8%
<PAGE>
Abbey National 10,000 6.76 4/02/96 10,010
Treasury Services
PLC
Bayerische 25,000 5.35 7/08/96 25,014
Hypothekenund-
Wechsel Bank
Total Certificates of Deposit--European
(Cost--$35,003) 35,024
Certificates of Deposit--Yankee--0.4%
Rabobank 8,500 6.69 3/08/96 8,502
Nederland,NY
Total Certificates of Deposit--Yankee
(Cost--$8,500) 8,502
Commercial Paper--48.9%
ABN AMRO North 24,000 5.61 4/25/96 23,805
America Finance
Inc.
ANZ (Delaware) 10,000 5.10 7/22/96 9,798
Inc.
APRECO Inc. 5,300 5.20 4/08/96 5,270
Alpine Securitiz- 35,000 5.23 3/21/96 34,893
ation Corp. 3,873 5.09 5/09/96 3,834
American Brands 16,600 5.33 4/09/96 16,504
Inc.
Beta Finance Inc. 27,000 5.57 3/07/96 26,971
CSW Credit, Inc. 25,000 5.42 3/07/96 24,974
8,300 5.40 3/15/96 8,281
CXC Incorporated 10,000 5.10 5/24/96 9,878
Ciesco, L.P. 5,800 5.17 4/12/96 5,764
Electricite de 10,000 5.50 4/17/96 9,930
France Service
National
<PAGE>
Eureka 25,000 5.65 3/07/96 24,973
Securitization 25,000 5.35 4/17/96 24,826
Inc.
General Motors 30,000 5.25 4/02/96 29,855
Acceptance Corp. 30,000 5.09 5/09/96 29,698
30,000 5.11 5/24/96 29,634
Goldman Sachs 15,000 5.65 4/10/96 14,911
Group, L.P. 20,000 5.50 5/07/96 19,805
Greenwich Funding 10,080 5.18 4/02/96 10,032
Corporation 10,000 5.15 4/29/96 9,913
2,799 5.09 5/20/96 2,766
Internationale 15,000 5.60 4/12/96 14,906
Nederlanden
(U.S.) Funding
Corp.
CBA Money Fund
Schedule of Investments as of February 29, 1996 (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper (concluded)
Kingdom of $20,000 5.64% 4/01/96 $ 19,906
Sweden 25,000 5.42 4/03/96 24,876
15,000 5.13 5/01/96 14,866
25,000 5.23 6/10/96 24,639
Koch Industries, 25,000 5.45 3/01/96 24,996
Inc.
Korea Development 10,000 5.07 5/15/96 9,891
Bank 25,000 5.09 5/15/96 24,727
10,000 5.15 5/15/96 9,891
McKenna Triangle 25,000 5.36 3/27/96 24,899
National Corp. 10,000 5.15 4/25/96 9,919
Morgan Stanley 2,185 5.34 4/08/96 2,173
Group Inc.
National 25,000 5.635 3/22/96 24,917
Australia 25,000 5.425 5/28/96 24,680
Funding 19,000 5.31 6/05/96 18,739
(Delaware), Inc.
<PAGE>
New South Wales 25,000 5.64 3/29/96 24,891
Treasury Corp.
Nomura Holding 25,000 5.38 4/04/96 24,873
America Inc. 25,000 5.18 4/24/96 24,801
Preferred 30,000 5.17 4/12/96 29,815
Receivables
Funding Corp.
Sandoz 20,000 5.15 5/02/96 19,819
Corporation
Sheffield 4,100 5.37 3/26/96 4,084
Receivables 20,000 5.20 4/01/96 19,908
Corp.
Svenska 20,000 5.10 5/08/96 19,802
Handelsbanken, 25,000 5.10 5/10/96 24,745
Inc. 22,000 5.10 5/21/96 21,741
Transamerica 22,000 5.45 3/06/96 21,980
Finance Corp. 5,000 5.15 5/06/96 4,952
25,000 5.03 6/06/96 24,653
WCP Funding, Inc. 15,000 5.42 3/13/96 14,971
10,000 5.20 4/11/96 9,939
Wool 11,000 5.61 4/12/96 10,931
International
Woolwich Building 20,000 5.07 5/07/96 19,805
Society
Total Commercial Paper
(Cost--$971,979) 972,050
Corporate Notes--5.0%
Abbey National 10,000 6.45 5/15/96 10,022
Treasury Services
PLC
CIT Group 20,000 5.30 12/23/96 19,984
HoldingsInc.
(The)++
<PAGE>
General Electric 6,970 7.875 5/01/96 6,999
Company
SMM Trust 25,000 5.625 1/08/97 25,000
Certificate
(1995-Q)++
SMM Trust 12,000 5.645 6/14/96 12,000
Certificate
(1995-K)++
CBA Money Fund
Schedule of Investments as of February 29, 1996 (concluded)
(in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Corporate Notes (concluded)
Short Term Card $20,000 5.645++% 1/15/97 $ 20,000
Account Trust
(1995-1)
Toyota Motor 6,000 5.49 9/13/96 5,998
Credit Corp.++
Total Corporate Notes
(Cost--$99,975) 100,003
Master Notes--2.0%
Goldman Sachs 40,000 5.28 11/08/96 40,000
Group L.P.++
Total Master Notes
(Cost--$40,000) 40,000
US Government & Agency Obligations--
Discount Notes--2.5%
Federal Farm 7,475 6.03 3/01/96 7,474
Credit Banks
Federal Home Loan 2,145 6.03 3/04/96 2,144
Banks 8,500 6.08 3/07/96 8,491
Federal Home Loan 12,000 6.07 3/22/96 11,961
Mortgage
Corporation
<PAGE>
Federal National 10,000 6.10 3/18/96 9,973
Mortgage 10,000 5.11 10/30/96 9,664
Association
Total US Government & Agency Obligations--
Discount Notes (Cost--$49,698) 49,707
US Government & Agency Obligations--
Non-Discount Notes--31.8%
Federal Home Loan 12,000 5.71++ 6/17/96 12,000
Banks 5,000 5.71++ 6/21/96 5,000
10,000 5.385++ 8/05/96 9,993
7,000 5.83++ 1/31/97 7,004
15,000 5.78++ 2/03/97 14,997
15,000 5.78++ 2/10/97 15,000
5,500 5.50 11/10/97 5,506
16,000 5.70++ 10/11/00 16,000
Federal Home Loan 14,940 7.88 12/20/96 15,243
Mortgage Corp.
Federal National 25,000 5.09++ 5/10/96 24,998
Mortgage 15,000 5.58++ 5/13/96 15,000
Association
10,000 5.31++ 7/08/96 9,997
10,000 5.17++ 8/08/96 9,997
25,000 5.05++ 10/11/96 25,000
27,780 5.60 11/01/96 27,836
CBA Money Fund
Schedule of Investments as of February 29, 1996 (concluded)
(in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
US Government & Agency Obligations--
Non-Discount Notes (concluded)
Federal National $ 8,800 5.30++% 11/04/96 $ 8,800
Mortgage 15,000 5.85++ 2/14/97 15,012
Association
(concluded) 25,000 5.21++ 2/21/97 25,000
15,000 5.30++ 3/14/97 15,000
12,000 5.70++ 5/19/97 12,000
5,000 5.79 11/14/97 5,004
11,000 5.75++ 5/14/98 11,000
<PAGE>
Student Loan 33,000 5.34 3/20/96 33,000
Marketing
Association++ 5,000 5.21 4/16/96 5,000
10,000 5.14 5/14/96 10,002
20,000 5.05 9/20/96 20,000
15,000 5.30 10/04/96 15,000
10,000 5.35 1/14/97 10,000
US Treasury Notes 25,000 7.875 7/15/96 25,246
5,000 6.125 7/31/96 5,020
10,000 6.50 9/30/96 10,075
10,000 7.00 9/30/96 10,100
15,000 8.00 10/15/96 15,248
55,000 6.875 10/31/96 55,576
32,000 7.25 11/15/96 32,435
20,000 7.50 1/31/97 20,394
15,000 6.50 4/30/97 15,202
5,000 5.75 9/30/97 5,027
10,000 5.375 11/30/97 9,995
10,000 5.25 12/31/97 9,977
20,000 5.00 1/31/98 19,859
Total US Government & Agency
Non-Discount Notes (Cost--$632,627) 632,543
Repurchase Agreements**--4.7%
Face Amount Issue
$93,160 PaineWebber, Inc., purchased on
2/29/96 to yield 5.45% to 3/01/1996 93,160
Total Repurchase Agreements
(Cost--$93,160) 93,160
Total Investments (Cost--$1,976,914)--99.4% 1,976,961
Other Assets Less Liabilities--0.6% 11,039
----------
Net Assets--100.0% $1,988,000
==========
<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 29, 1996.
**Repurchase Agreements are fully collateralized by US Government
Obligations.
++Variable Rate Notes.
See Notes to Financial Statements.
CBA Money Fund
<TABLE>
Statement of Assets and Liabilities as of February 29, 1996
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,976,913,680*) (Note 1a) $1,976,961,100
Cash. 9,029
Receivables:
Securities sold $ 17,248,065
Interest 10,246,434 27,494,499
--------------
Prepaid registration fees and other assets (Note 1d) 462,458
--------------
Total assets 2,004,927,086
--------------
Liabilities:
Payables:
Securities purchased 15,000,000
Investment adviser (Note 2) 590,924
Distributor (Note 2) 541,239
Beneficial interest redeemed 1,381
Dividend to shareholders (Note 1e) 667 16,134,211
--------------
Accrued expenses and other liabilities 793,051
Total liabilities 16,927,262
--------------
Net Assets $1,987,999,824
==============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 198,795,240
Paid-in capital in excess of par 1,789,157,164
Unrealized appreciation on investments--net 47,420
--------------
Net Assets--Equivalent to $1.00 per share based on 1,987,952,404 shares of beneficial
interest outstanding $1,987,999,824
==============
<PAGE>
<FN>
*The aggregate cost of investments at February 29, 1996 for Federal
income tax purposes was $1,976,915,243. As of February 29, 1996, net
unrealized appreciation for Federal income tax purposes amounted to
$45,857, of which $415,006 related to appreciated securities and
$369,149 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
CBA Money Fund
<TABLE>
Statement of Operations for the Year Ended February 29, 1996
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 99,988,303
Expenses:
Investment advisory fees (Note 2) $ 7,171,703
Transfer agent fees (Note 2) 3,116,228
Distribution fees (Note 2) 2,066,718
Registration fees (Note 1d) 352,986
Printing and shareholder reports 134,731
Accounting services (Note 2) 134,460
Professional fees 100,640
Custodian fees 94,794
Trustees' fees and expenses 39,933
Other 31,104
--------------
Total expenses before reimbursement 13,243,297
Reimbursement of expenses (Note 2) (671,436)
--------------
Total expenses after reimbursement 12,571,861
--------------
Investment Income--Net 87,416,442
Realized Gain on Investments--Net (Note 1c) 248,237
Change in Unrealized Appreciation on Investments--Net (12,858)
--------------
Net Increase in Net Assets Resulting from Operations $ 87,651,821
==============
</TABLE>
<PAGE>
<TABLE>
For the For the
CBA Money Fund Year Ended Year Ended
Statements of Changes in Net Assets February 29, 1996 February 28, 1995
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income--net $ 87,416,442 $ 51,426,176
Realized gain on investments--net 248,237 19,884
Change in unrealized appreciation on investments--net (12,858) 581,662
-------------- --------------
Net increase in net assets resulting from operations 87,651,821 52,027,722
-------------- --------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (87,416,442) (51,426,176)
Realized gain on investments--net (248,237) (19,884)
-------------- --------------
Net decrease in net assets resulting from dividends and distributions to (87,664,679) (51,446,060)
shareholders -------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 5,183,058,051 4,007,388,057
Net asset value of shares issued to shareholders in reinvestment of
dividends and distributions (Note 1e) 87,477,649 51,328,362
-------------- --------------
5,270,535,700 4,058,716,419
Cost of shares redeemed (4,688,838,267) (3,940,438,831)
-------------- --------------
Net increase in net assets derived from beneficial interest transactions 581,697,433 118,277,588
-------------- --------------
Net Assets:
Total increase in net assets 581,684,575 118,859,250
Beginning of year 1,406,315,249 1,287,455,999
-------------- --------------
End of year $1,987,999,824 $1,406,315,249
============== ==============
See Notes to Finanicial Statements.
</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
February 29, For the Year Ended February 28, February 29,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1993 1992
<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 .0524 .0396 .0260 .0304 .0511
Realized and unrealized gain (loss) on investments--net .0001 .0005 (.0004) .0017 .0008
---------- ---------- ---------- ---------- ----------
Total from investment operations .0525 .0401 .0256 .0321 .0519
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.0524) (.0396) (.0260) (.0304) (.0511)
Realized gain on investments--net (.0001) (.0000)** (.0004) (.0014) (.0008)*
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.0525) (.0396) (.0264) (.0318) (.0519)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 5.38% 4.04% 2.66% 3.24% 5.32%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement .75% .77% .71% .71% .69%
========== ========== ========== ========== ==========
Expenses .79% .81% .75% .75% .74%
========== ========== ========== ========== ==========
Investment income and realized gain on
investments--net 5.22% 3.98% 2.62% 3.19% 5.18%*
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $1,988,000 $1,406,315 $1,287,456 $1,242,686 $1,211,833
========== ========== ========== ========== ==========
<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 management investment 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.
<PAGE>
(e) Dividends and distributions 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 and
distributions are declared from the total of net investment income
and net realized gain or loss on investments.
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 29, 1996, the Manager
earned $7,171,703, of which $671,436 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>
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, MLFDS, 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 29, 1996, 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
misstatment. 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
29, 1996 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.
<PAGE>
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 29, 1996, 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
April 3, 1996
</AUDIT-REPORT>
