[CBA FUND LOGO]
CBA Money Fund
Annual Report
February 28, 1997
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 #11676 -- 2/97
CBA Money Fund
Dear Shareholder:
For the year ended February 28, 1997, CBA Money Fund paid shareholders a
net annualized dividend of 4.87%*. For the six-month period ended
February 28, 1997, the Fund's net annualized dividend was 4.79%*. The
Fund's 7-day yield as of February 28, 1997 was 4.77%.
The average portfolio maturity for CBA Money Fund at February 28, 1997
was 68 days, compared to 62 days at August 31, 1996.
The Environment
There was a relatively benign economic environment as 1996 drew to a
close, a trend which continued into the first months of 1997. Inflation
remains low, the pace of economic activity is moderate, and trends in
corporate earnings generally still appear to be favorable, although the
rate of increase in profits will probably be slower in 1997 than in
previous years.
On balance, US economic fundamentals appear to be the most positive they
have been for many years. However, the dilemma facing investors is how
long the economic expansion can continue at a steady, noninflationary
pace. At this late stage of the current economic recovery, investor
expectations can quickly change from positive to negative with the
release of surprising economic results. This tendency was illustrated in
the stock and bond market volatility sparked by Federal Reserve Board
Chairman Alan Greenspan's Humphrey-Hawkins testimony before Congress in
late February. Investors interpreted Chairman Greenspan's comments as
indicative of a tightening in monetary policy, although stock and bond
prices did stabilize subsequently. Continued steady, noninflationary
economic growth would be a very positive development for the stock and
bond markets in the new year, provided that it is not accompanied by
successive preemptive moves by the Federal Reserve Board to raise
interest rates to quell potential inflationary forces.
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after
all expenses.
For most of the six-month period ended February 28, 1997, an environment
of modest economic growth and low inflation encouraged the Fund to
maintain a relatively aggressive investment posture. However, recent
evidence of above-trend economic growth and tightness in the labor
market influenced the Fund to adopt a slightly more defensive investment
structure.
On the international front, the US dollar continued its strong advance
relative to the yen and the Deutschemark, raising concerns about the
outlook for US trade. In early February, the leading industrialized
nations expressed apparent agreement that it was time to seek a lower
dollar and less volatility in the foreign exchange markets. It remains
to be seen whether these stated intentions will be acted upon, or if the
US dollar continues to rise relative to other major currencies.
The portfolio's composition at the end of the February period and as of
our last report is detailed below:
2/28/97 8/31/96
------- -------
Bank Notes 1.1% 1.7%
Certificates of Deposit 3.8 --
Certificates of Deposit -- Yankee* 1.6 0.7
Commercial Paper 54.8 53.2
Corporate Notes 11.1 5.3
Master Notes &
Funding Agreements 2.9 3.2
Repurchase Agreements 1.0 4.9
US Government & Agency
Obligations 23.5 31.7
Other Assets Less Liabilities 0.2 --
Liabilities in Excess of
Other Assets -- (0.7)
------- -------
100.0% 100.0%
======= =======
*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,
/S/ARTHUR ZEIKEL
Arthur Zeikel
President
/S/CARLO J. GIANNINI
Carlo J. Giannini
Vice President and Portfolio Manager
April 1, 1997
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
Merrill Lynch 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.
<TABLE>
<CAPTION>
CBA Money Fund
Schedule of Investments as of February 28, 1997 (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Bank Notes -- 1.1%
<S> <C> <C> <C> <C>
First Bank N.A., $25,000 5.283% 1/22/98 $24,982
Milwaukee+
Total Bank Notes (Cost -- $24,982) 24,982
Certificates of Deposit -- 3.8%
Bankers Trust Company 25,000 5.40 5/05/97 24,998
Chase Manhattan 35,000 5.52 7/08/97 34,997
Bank, NY
Morgan Guaranty 25,000 5.71 1/06/98 24,971
Trust Company, NY
Total Certificates of Deposit
(Cost -- $84,992) 84,966
Certificates of Deposit -- Yankee -- 1.6%
ABN-AMRO 10,000 5.68 12/22/97 9,987
Bank N.V.
Bayerische Landesbank 15,000 5.50 12/04/97 14,960
Girozentrale
Deutsche Bank NY 10,000 5.63 2/26/98 9,979
Total Certificates of Deposit -- Yankee
(Cost -- $34,981) 34,926
Commercial Paper -- 54.8%
ARCO British Limited 17,337 5.35 3/12/97 17,306
Allomon Funding 10,242 5.28 3/19/97 10,214
Corporation 28,179 5.28 3/20/97 28,096
Alpine Securitization 25,000 5.33 3/04/97 24,985
Corp. 19,576 5.28 4/03/97 19,478
American Honda 25,000 5.28 4/02/97 24,879
Finance Corp.
Atlantic Asset 20,263 5.50 3/17/97 20,212
Securitization Corp. 29,737 5.28 3/26/97 29,624
Bank of Scotland 20,000 5.35 4/02/97 19,901
Treasury Services PLC 15,000 5.30 5/12/97 14,837
Beta Finance Inc. 25,000 5.35 4/07/97 24,858
16,000 5.35 4/17/97 15,886
CXC Incorporated 5,000 5.28 4/08/97 4,971
Caisse D'amortissement 25,000 5.38 7/09/97 24,511
de la Dette Sociale
Chrysler Financial 25,000 5.33 3/20/97 24,926
Corporation
Columbia/HCA 20,000 5.30 4/02/97 19,903
Healthcare Corporation 20,000 5.28 5/30/97 19,730
Commonwealth Bank 25,000 5.45 3/27/97 24,899
of Australia 15,000 5.36 7/31/97 14,658
35,000 5.36 8/05/97 34,171
Countrywide Home
Loans, Inc. 25,000 5.33 3/05/97 24,981
Credit Suisse 10,000 5.32 4/28/97 9,912
First Boston, Inc.
Eiger Capital Corp. 24,937 5.32 3/12/97 24,893
Eureka 25,000 5.32 3/25/97 24,908
Securitization Inc. 20,000 5.30 4/03/97 19,900
Finova Capital Corp. 25,000 5.38 4/16/97 24,826
25,000 5.38 7/16/97 24,485
Ford Motor Credit Co. 25,000 5.48 3/17/97 24,936
25,000 5.48 3/24/97 24,910
GTE Corporation 25,000 5.32 3/13/97 24,952
General Motors 25,000 5.31 5/23/97 24,688
Acceptance Corp. 30,000 5.45 7/10/97 29,409
15,000 5.41 7/24/97 14,673
25,000 5.40 7/25/97 24,452
Goldman Sachs 25,000 5.30 5/30/97 24,662
Group, L.P.
Industrial Bank of Korea 5,000 5.37 3/06/97 4,995
10,000 5.35 4/15/97 9,932
7,000 5.37 5/13/97 6,923
17,000 5.32 5/22/97 16,790
International Lease 25,000 5.36 7/23/97 24,459
Finance Corp.
International 10,000 5.28 3/18/97 9,974
Securitization Corp. 40,000 5.28 3/20/97 39,883
Korea Development 6,700 5.32 3/06/97 6,694
Bank 15,000 5.38 4/28/97 14,868
25,000 5.33 5/12/97 24,729
Mont Blanc 28,251 5.28 4/11/97 28,077
Capital Corp.
Morgan Stanley 25,000 5.34 4/25/97 24,792
Group, Inc.
NYNEX Corporation 10,000 5.28 3/26/97 9,962
National Fleet 20,000 5.32 4/02/97 19,902
Funding Corp. 18,000 5.28 4/23/97 17,857
New Center Asset Trust 25,000 5.49 3/19/97 24,929
15,000 5.35 4/01/97 14,928
Old Line Funding Corp. 20,000 5.32 3/03/97 19,991
30,000 5.35 3/10/97 29,955
25,000 5.30 3/21/97 24,923
20,000 5.29 4/03/97 19,900
RTZ America, Inc. 10,100 5.30 5/16/97 9,984
Santander Finance 10,000 5.40 7/23/97 9,784
(Delaware) Inc.
Transamerica Finance 20,000 5.33 5/30/97 19,730
Corp. 15,000 5.32 6/17/97 14,757
Westpac Capital 12,180 5.30 5/14/97 12,044
Corporation
Total Commercial Paper
(Cost -- $1,225,398) 1,225,394
Corporate Notes -- 11.1%
Abbey National 25,000 5.297 5/16/97 24,995
Treasury Services PLC+ 25,000 5.36 2/10/98 24,984
20,000 5.34 2/25/98 19,985
Asset-Backed Securities 25,000 5.422 10/15/97 25,000
Investment Trust (1996-M)+
Associates Corp. of 6,500 9.70 5/01/97 6,539
North America 4,000 6.80 12/29/97 4,029
CIT Group Holdings, 25,000 5.36 10/27/97 24,989
Inc. (The)+ 25,000 5.35 12/23/97 24,982
Chase Manhattan Auto 3,938 5.489 1/15/98 3,938
Owner Trust (1996-C)
First Bank Systems+ 15,000 5.363 12/17/97 15,000
LABS Trust 24,261 5.438 12/29/97 24,261
(Series 1996-C),
Senior Notes
LINCS (Series 1996-3)+ 10,000 5.422 1/12/98 10,000
Morgan Guaranty Trust+ 15,000 5.365 2/19/98 14,992
SMM Trust Certificate 25,000 5.422 1/15/98 25,000
(1997-Q)+
Total Corporate Notes
(Cost -- $248,701) 248,694
Master Notes & Funding Agreements -- 2.9%
Goldman Sachs 40,000 5.37 8/01/97 40,000
Group, L.P.+
Jackson National Life 25,000 5.47 4/08/97 25,000
Insurance Co.+
Total Master Notes & Funding Agreements
(Cost -- $65,000) 65,000
US Government & Agency Obligations --
Non-Discount Notes -- 23.5%
Federal Farm Credit 10,000 5.85 10/01/97 10,017
Banks
Federal Home Loan 5,500 5.50 11/10/97 5,497
Banks 30,000 5.33+ 12/10/97 29,989
Federal National 15,000 5.30+% 3/14/97 15,000
Mortgage Association 14,000 5.252+ 4/15/97 13,998
20,000 5.298+ 4/28/97 19,998
8,000 5.268+ 5/14/97 7,999
25,000 5.24+ 5/22/97 24,996
29,000 5.32+ 7/16/97 28,993
15,000 5.34+ 8/01/97 14,997
13,000 5.325+ 9/03/97 12,995
10,000 5.33+ 9/09/97 9,996
9,000 5.33+ 9/29/97 8,997
16,000 5.315+ 10/20/97 15,991
5,000 5.79 11/14/97 4,998
25,000 5.38+ 4/24/98 24,989
Student Loan 25,000 5.74 10/03/97 25,030
Marketing Association 5,000 5.49+ 10/30/97 5,004
US Treasury Notes 40,000 6.50 5/15/97 40,087
15,000 6.125 5/31/97 15,019
65,000 8.50 7/15/97 65,721
25,000 5.875 7/31/97 25,047
10,000 6.50 8/15/97 10,047
13,000 6.00 8/31/97 13,024
16,500 5.75 9/30/97 16,521
30,000 8.75 10/15/97 30,581
5,000 5.25 12/31/97 4,984
7,000 5.00 1/31/98 6,953
18,000 7.25 2/15/98 18,236
Total US Government & Agency Obligations --
Non-Discount Notes (Cost -- $525,646) 525,704
</TABLE>
<TABLE>
<CAPTION>
Repurchase Agreements** -- 1.0%
Face Amount Issue
<S> <C> <C>
$21,375 Fuji Securities, Inc., purchased on
2/28/1997 to yield 5.40% to 3/03/1997 21,375
Total Repurchase Agreements
(Cost -- $21,375) 21,375
Total Investments (Cost -- $2,231,075) -- 99.8% 2,231,041
Other Assets Less Liabilities -- 0.2% 5,619
----------
Net Assets -- 100.0% $2,236,660
==========
* 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, 1997.
** Repurchase Agreements are fully collateralized by US Government Obligations.
+ Variable Rate Notes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CBA Money Fund
Statement of Assets and Liabilities as of February 28, 1997
Assets:
<S> <C> <C>
Investments, at value (identified cost -- $2,231,075,164*) (Note 1a) $2,231,040,808
Interest receivables 7,801,085
Prepaid registration fees and other assets (Note 1d) 139,727
--------------
Total assets 2,238,981,620
--------------
Liabilities:
Payables:
Investment adviser (Note 2) $648,689
Distributor (Note 2) 605,214
Dividends to shareholders (Note 1e) 529
Beneficial interest redeemed 7 1,254,439
--------
Accrued expenses and other liabilities 1,067,177
--------------
Total liabilities 2,321,616
--------------
Net Assets $2,236,660,004
==============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $223,669,436
Paid-in capital in excess of par 2,013,024,924
Unrealized depreciation on investments -- net (34,356)
--------------
Net Assets -- Equivalent to $1.00 per share based on 2,236,694,361 shares of beneficial
interest outstanding $2,236,660,004
==============
* The aggregate cost of investments at February 28, 1997 for Federal income tax purposes was
$2,231,091,639. As of February 28, 1997, net unrealized depreciation for Federal income tax
purposes amounted to $50,831, of which $153,736 related to appreciated securities and $204,567
related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CBA MONEY FUND
Statement of Operations for the Year Ended February 28, 1997
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $113,194,767
Expenses:
Investment advisory fees (Note 2) $8,657,674
Transfer agent fees (Note 2) 3,420,214
Distribution fees (Note 2) 2,519,882
Registration fees (Note 1d) 204,304
Accounting services (Note 2) 143,588
Printing and shareholder reports 120,383
Custodian fees 116,213
Professional fees 64,698
Trustees' fees and expenses 40,616
Interest expense 831
Other 26,485
----------
Total expenses before reimbursement 15,314,888
Reimbursement of expenses (Note 2) (830,366)
----------
Total expenses after reimbursement 14,484,522
-------------
Investment Income -- Net 98,710,245
Realized Gain on Investments -- Net (Note 1c) 46,265
Change in Unrealized Appreciation on Investments -- Net (81,776)
-------------
Net Increase in Net Assets Resulting from Operations $98,674,734
=============
</TABLE>
<TABLE>
<CAPTION>
CBA Money Fund
Statements of Changes in Net Assets For the For the
Year Ended Year Ended
February 28, 1997 February 29, 1996
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income -- net $98,710,245 $87,416,442
Realized gain on investments -- net 46,265 248,237
Change in unrealized appreciation on investments -- net (81,776) (12,858)
-------------- --------------
Net increase in net assets resulting from operations 98,674,734 87,651,821
-------------- --------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income -- net (98,710,245) (87,416,442)
Realized gain on investments -- net (46,265) (248,237)
-------------- --------------
Net decrease in net assets resulting from dividends and distributions to shareholders (98,756,510) (87,664,679)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 5,723,246,368 5,183,058,051
Net asset value of shares issued to shareholders in reinvestment of dividends and
distributions (Note 1e) 98,549,542 87,477,649
-------------- --------------
5,821,795,910 5,270,535,700
Cost of shares redeemed (5,573,053,954) (4,688,838,267)
-------------- --------------
Net increase in net assets derived from beneficial interest transactions 248,741,956 581,697,433
-------------- --------------
Net Assets:
Total increase in net assets 248,660,180 581,684,575
Beginning of year 1,987,999,824 1,406,315,249
-------------- --------------
End of year $2,236,660,004 $1,987,999,824
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CBA Money Fund
Financial Highlights
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 28, February 29, For the Year Ended February 28,
1997 1996 1995 1994 1993
Increase (Decrease) in Net Asset Value:
<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 .0475 .0524 .0396 .0260 .0304
Realized and unrealized gain (loss) on investments -- net --* .0001 .0005 (.0004) .0017
---------- ---------- ---------- ---------- ----------
Total from investment operations .0475 .0525 .0401 .0256 .0321
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income -- net (.0475) (.0524) (.0396) (.0260) (.0304)
Realized gain on investments -- net --* (.0001) --* (.0004) (.0014)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.0475) (.0525) (.0396) (.0264) (.0318)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ==========
Total Investment Return 4.87% 5.39% 4.04% 2.67% 3.23%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement .69% .75% .77% .71% .71%
========== ========== ========== ========== ==========
Expenses .73% .79% .81% .75% .75%
========== ========== ========== ========== ==========
Investment income and realized gain on
investments -- net 4.71% 5.22% 3.98% 2.62% 3.19%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $2,236,660 $1,988,000 $1,406,315 $1,287,456 $1,242,686
========== ========== ========== ========== ==========
* Amount is less than $.0001 per share.
See Notes to Financial Statements.
</TABLE>
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.
(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. During the year ended February 28, 1997, the Manager earned
$8,657,674, of which $830,366 was voluntarily waived.
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.
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, 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.
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, 1997, 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, 1997 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, 1997, 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 2, 1997
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, 1997 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, 1996 16.60%
August 31, 1996 16.46
November 30, 1996 20.38
February 28, 1997 14.37
Of the Fund's ordinary income dividends paid during the year ended
February 28, 1997, 17.71% 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.
+ 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.
