CBA(R) CBA
- --------------------------------------------------------------------------------
CBA CBA
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CBA Money Fund
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Semi-Annual Report
August 31, 1998
<PAGE>
CBA Money Fund
Dear Shareholder:
For the six-month period ended August 31, 1998, CBA Money Fund paid shareholders
a net annualized dividend of 5.05%.* The Fund's 7-day yield as of August 31,
1998 was 4.96%.
The average portfolio maturity for CBA Money Fund at August 31, 1998 was 72 days
compared to 78 days at February 28, 1998.
The Environment
Mounting evidence of a slowing economy and the prospect of lower corporate
earnings growth led to greater volatility in the US financial markets during the
six months ended August 31, 1998. At the same time, greater economic and
political uncertainties in Asia and Russia led investors to become concerned
about the outlook for economic activity worldwide. Although these developments
were negative for stock markets, they generally were beneficial to bond prices,
especially as inflationary trends remained subdued. As was widely anticipated,
the Federal Reserve Board did not move to tighten monetary policy. However,
shortly after the August quarter's close, Federal Reserve Board Chairman Alan
Greenspan indicated that the central bank's focus had shifted from inflationary
concerns to the threat posed to the US economy by the increasing financial
troubles in other countries. During the six-month period ended August 31, 1998,
we maintained a constructive investment strategy, based on our belief that these
financial troubles could possibly lead interest rates to decline.
In the United States, gross domestic product rose at a rate of 1.4% for the
second calendar quarter, down from the 5.5% rate for the first three months of
the year. The economic slowdown in Asia negatively impacted US exports, and the
protracted strike at General Motors Corporation also was a negative factor for
economic activity. However, the US dollar remained strong, especially relative
to the Japanese yen. The weakness of the Japanese economy continues to be a
source of concern not only for Asia, but for the rest of the world as well.
In the months ahead, investors will continue to focus on the economic outlook in
Asia and its impact on worldwide economic activity and corporate earnings
results. If there were evidence of more buoyant yet moderate US economic growth
and a pick-up in corporate profits growth, we would expect stability to return
to the financial markets on a global basis. Absent these developments, market
volatility is likely to continue.
The portfolio's composition at the end of the August period and as of our last
report is detailed below:
8/31/98 2/28/98
------- -------
Bank Notes ............................................ 12.9% 15.6%
Certificates of Deposit ............................... 1.9 2.8
Certificates of Deposit--European ..................... 0.9 1.3
Certificates of Deposit--Yankee+ ...................... 9.3 11.8
Commercial Paper ...................................... 38.7 39.4
Corporate Notes ....................................... 15.4 11.4
Master Notes & Funding Agreements ..................... 2.9 2.7
Medium-Term Notes ..................................... 0.4 --
Repurchase Agreements ................................. 3.0 2.1
US Government & Agency Obligations--
Non-Discount Notes .................................. 15.3 15.3
Liabilities in Excess of Other Assets ................. (0.7) (2.4)
------ ------
100.0% 100.0%
====== ======
+ US branches of foreign banks.
* Based on a constant investment the throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
<PAGE>
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/ Marie Dwyer
Marie Dwyer
Vice President and Portfolio Manager
October 1, 1998
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
Kevin J. McKenna--Senior Vice President
Joseph T. Monagle, Jr.--Senior Vice President
Donald C. Burke--Vice President
Marie Dwyer--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
* For inquiries regarding your CBA account, call (800) 247-6400.
2
<PAGE>
CBA Money Fund
Schedule of Investments as of August 31, 1998 (in Thousands)
<TABLE>
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------------
Bank Notes--12.9%
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Express $ 19,000 5.608%+ 2/12/99 $19,000
Centurion Bank 7,300 5.594+ 3/19/99 7,300
- -----------------------------------------------------------------------------------------------
Bank of New York (The) 10,000 5.57 3/17/99 9,995
- -----------------------------------------------------------------------------------------------
BankBoston, N.A. 15,000 5.70 4/15/99 15,004
- -----------------------------------------------------------------------------------------------
Comerica Bank, Detroit 13,000 5.566+ 2/02/99 12,998
8,500 5.552+ 2/09/99 8,498
- -----------------------------------------------------------------------------------------------
FCC National Bank 18,000 5.55+ 2/23/99 17,994
15,000 5.55+ 6/01/99 14,992
- -----------------------------------------------------------------------------------------------
First National Bank 7,000 5.55+ 2/23/99 6,998
of Chicago
- -----------------------------------------------------------------------------------------------
First Tennessee Bank N.A 7,000 5.75 1/22/99 7,000
10,000 5.567+ 2/08/99 9,997
10,000 5.547+ 6/09/99 9,994
- -----------------------------------------------------------------------------------------------
First Union National Bank 9,800 5.62+ 9/01/99 9,800
- -----------------------------------------------------------------------------------------------
Huntington National Bank 5,000 5.538+ 1/20/99 4,999
25,000 5.534+ 1/22/99 24,995
- -----------------------------------------------------------------------------------------------
LaSalle National Bank, 15,000 5.55 2/08/99 14,991
Chicago 7,000 5.55 2/22/99 6,996
- -----------------------------------------------------------------------------------------------
PNC Bank N.A 41,100 5.60+ 10/01/98 41,098
45,000 5.57+ 1/29/99 44,987
15,000 5.536+ 7/01/99 14,991
- -----------------------------------------------------------------------------------------------
SouthTrust Bank N.A 10,000 5.58+ 3/25/99 9,998
- -----------------------------------------------------------------------------------------------
Total Bank Notes (Cost--$312,622) ................................................ 312,625
- -----------------------------------------------------------------------------------------------
Certificates of Deposit--1.9%
- -----------------------------------------------------------------------------------------------
Chase Manhattan Bank, 20,000 5.70 7/02/99 20,017
USA, N.A.
- -----------------------------------------------------------------------------------------------
Mellon Bank N.A., 5,000 5.68 12/31/98 5,001
Pittsburgh
- -----------------------------------------------------------------------------------------------
NationsBank N.A. 8,000 5.55 2/09/99 7,995
14,000 5.55 2/10/99 13,991
- -----------------------------------------------------------------------------------------------
Total Certificates of Deposit (Cost--$46,984) .................................... 47,004
- -----------------------------------------------------------------------------------------------
Certificates of Deposit--European--0.9%
- -----------------------------------------------------------------------------------------------
Abbey National Treasury 10,658 5.625+ 3/08/99 10,657
Services Plc, London
- -----------------------------------------------------------------------------------------------
Barclays Bank Plc, London 10,000 5.70 4/07/99 10,003
- -----------------------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--20,6602) .................................................................. 20,660
- -----------------------------------------------------------------------------------------------
Certificates of Deposit--Yankee--9.3%
- -----------------------------------------------------------------------------------------------
Bank of Montreal, 10,000 5.69 6/15/99 10,006
Chicago
- -----------------------------------------------------------------------------------------------
Barclays Bank Plc, NY 10,000 5.715 10/09/98 9,999
10,000 5.56 2/25/99 9,993
7,000 5.645 3/02/99 6,999
13,000 5.53+ 6/01/99 12,991
- -----------------------------------------------------------------------------------------------
Bayerische 10,000 5.835% 9/29/98 10,000
Hypotheken-und 24,000 5.65 2/26/99 23,994
Wechsel-Bank, NY
- -----------------------------------------------------------------------------------------------
Bayerische Landesbank 10,000 5.521+ 6/30/99 9,994
Girozentrale, NY
- -----------------------------------------------------------------------------------------------
Bayerische Vereinsbank 10,000 5.70 10/06/98 9,998
AG, NY 16,000 5.60 2/02/99 15,992
- -----------------------------------------------------------------------------------------------
Canadian Imperial Bank 15,000 5.55 2/10/99 14,989
of Commerce, NY 10,000 5.70 6/14/99 10,007
10,000 5.71 6/21/99 10,008
- -----------------------------------------------------------------------------------------------
Credit Suisse First 15,000 5.72 3/11/99 15,004
Boston, NY 10,000 5.66+ 5/12/99 10,000
- -----------------------------------------------------------------------------------------------
Deutsche Bank AG, NY 10,000 5.62 2/26/99 9,996
- -----------------------------------------------------------------------------------------------
Norddeutsche 10,000 5.556+ 2/02/99 9,998
Landesbank
Girozentrale, NY
- -----------------------------------------------------------------------------------------------
Rabobank Nederland 10,000 5.71 5/21/99 10,006
N.V., NY
- -----------------------------------------------------------------------------------------------
Swiss Bank Corp., NY 15,000 5.63 3/24/99 14,998
- -----------------------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$224,935) ................................................................. 224,972
- -----------------------------------------------------------------------------------------------
Commercial Paper--38.7%
- -----------------------------------------------------------------------------------------------
Allomon Funding Corp. 5,056 5.54 10/08/98 5,026
- -----------------------------------------------------------------------------------------------
Amsterdam Funding 7,954 5.58 9/11/98 7,941
Corp. 7,275 5.53 10/15/98 7,224
10,000 5.54 11/19/98 9,877
- -----------------------------------------------------------------------------------------------
Apreco, Inc. 15,000 5.53 10/15/98 14,895
15,000 5.54 10/26/98 14,869
20,000 5.53 10/27/98 19,822
14,968 5.54 11/05/98 14,816
- -----------------------------------------------------------------------------------------------
Bankers Trust 15,000 5.50 1/15/99 14,683
Corporation
- -----------------------------------------------------------------------------------------------
Certain Funding Corp. 11,250 5.51 12/01/98 11,092
- -----------------------------------------------------------------------------------------------
Chrysler Financial 25,000 5.66 9/03/98 24,988
Corporation
- -----------------------------------------------------------------------------------------------
Concord Minutemen 20,000 5.52 10/07/98 19,886
Capital Corp. LLC 10,000 5.54 10/13/98 9,933
- -----------------------------------------------------------------------------------------------
Corporate Asset 10,000 5.52 10/06/98 9,944
Funding Co., Inc.
- -----------------------------------------------------------------------------------------------
Countrywide Home 7,125 5.535 9/03/98 7,122
Loans, Inc. 15,000 5.53 9/04/98 14,991
15,000 5.55 9/08/98 14,981
15,000 5.54 9/28/98 14,935
- -----------------------------------------------------------------------------------------------
Credit Suisse First 9,750 5.50 2/16/99 9,496
Boston Inc.
- -----------------------------------------------------------------------------------------------
Finova Capital Corp. 7,000 5.52 9/09/98 6,990
10,000 5.54 9/21/98 9,968
</TABLE>
3
<PAGE>
CBA Money Fund
Schedule of Investments as of August 31, 1998 (continued) (in Thousands)
<TABLE>
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------------
Commercial Paper (continued)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Finova Capital Corp. $ 20,000 5.54% 9/24/98 $19,926
(concluded) 15,000 5.54 9/25/98 14,942
15,000 5.53 10/22/98 14,878
20,000 5.53 11/04/98 19,800
10,000 5.52 11/30/98 9,860
10,000 5.52 1/13/99 9,792
- -----------------------------------------------------------------------------------------------
General Electric 25,000 5.47 2/18/99 24,340
Capital Corp.
- -----------------------------------------------------------------------------------------------
General Motors 15,000 5.54 9/15/98 14,965
Acceptance Corp. 15,000 5.49 11/19/98 14,815
- -----------------------------------------------------------------------------------------------
Goldman Sachs 30,000 5.48 2/09/99 29,250
Group, L.P.
- -----------------------------------------------------------------------------------------------
Greyhawk Capital Corp. 10,000 5.53 10/01/98 9,952
- -----------------------------------------------------------------------------------------------
Knight-Ridder, Inc. 8,000 5.60 9/10/98 7,988
10,000 5.55 10/22/98 9,919
28,800 5.55 10/30/98 28,531
10,000 5.55 11/05/98 9,898
18,000 5.52 12/14/98 17,709
- -----------------------------------------------------------------------------------------------
Lehman Brothers 10,000 5.52 11/17/98 9,880
Holdings, Inc. 30,000 5.50 12/10/98 29,533
20,000 5.54 12/16/98 19,670
10,000 5.54 12/22/98 9,826
15,000 5.50 2/11/99 14,620
15,000 5.51 2/16/99 14,608
10,000 5.51 2/17/99 9,737
- -----------------------------------------------------------------------------------------------
Lexington Parker 15,000 5.53 9/04/98 14,991
Capital Co., LLC 20,000 5.54 9/11/98 19,966
- -----------------------------------------------------------------------------------------------
Monsanto Company 20,000 5.49 12/21/98 19,655
15,000 5.48 12/30/98 14,720
- -----------------------------------------------------------------------------------------------
Morgan Stanley, Dean 10,000 5.616+ 12/24/98 10,000
Witter & Co. 10,000 5.612+ 1/22/99 10,000
- -----------------------------------------------------------------------------------------------
Old Line Funding Corp. 15,000 5.57 9/09/98 14,979
636 5.57 9/14/98 635
6,182 5.56 9/17/98 6,166
- -----------------------------------------------------------------------------------------------
Repeat Offering 15,000 5.54 9/22/98 14,949
Securitization Entity
Funding Inc.
- -----------------------------------------------------------------------------------------------
Republic Industries 20,000 5.54 9/02/98 19,994
Funding Corp. 10,000 5.54 10/14/98 9,932
- -----------------------------------------------------------------------------------------------
Salomon Smith 15,000 5.48 2/10/99 14,622
Barney Holdings, Inc. 10,000 5.48 2/19/99 9,734
- -----------------------------------------------------------------------------------------------
Thames Asset Global 8,708 5.55 9/16/98 8,687
Securitization 17,063 5.52 10/02/98 16,979
8,516 5.52 10/08/98 8,466
20,000 5.51 11/30/98 19,719
- -----------------------------------------------------------------------------------------------
Vattenfall Treasury, Inc. 8,000 5.52 9/08/98 7,990
- -----------------------------------------------------------------------------------------------
WCP Funding Inc. 20,000 5.52 11/06/98 19,793
- -----------------------------------------------------------------------------------------------
Windmill Funding Corp. 10,000 5.53% 9/10/98 9,984
9,463 5.55 10/14/98 9,398
19,817 5.51 10/15/98 19,678
10,000 5.51 11/12/98 9,887
- -----------------------------------------------------------------------------------------------
Total Commercial Paper (Cost--$938,935) .......................................... 938,842
- -----------------------------------------------------------------------------------------------
Corporate Notes--15.4%
- -----------------------------------------------------------------------------------------------
Abbey National 10,000 5.537+ 7/20/99 9,992
Treasury Services Plc 20,000 5.58+ 8/17/99 19,985
- -----------------------------------------------------------------------------------------------
Associates Corp. of 5,700 6.25 3/15/99 5,718
North America
- -----------------------------------------------------------------------------------------------
CIT Group Holdings, 11,000 5.59+ 9/30/98 10,999
Inc. (The) 10,000 5.64+ 1/12/99 9,998
6,000 5.57+ 3/22/99 5,998
10,000 5.55+ 5/24/99 9,995
18,000 5.54+ 6/28/99 17,988
- -----------------------------------------------------------------------------------------------
Chase Manhattan Auto 849 5.549 3/12/99 849
Owner Trust 1998--A,
Class A-1++
- -----------------------------------------------------------------------------------------------
Chase Manhattan Corp. 14,000 5.597+ 3/25/99 13,993
- -----------------------------------------------------------------------------------------------
Credit Suisse First 15,000 5.66+ 4/09/99 15,000
Boston Inc. 15,000 5.66+ 4/20/99 15,000
- -----------------------------------------------------------------------------------------------
First Bank System Inc. 14,000 5.784+ 10/21/98 14,003
- -----------------------------------------------------------------------------------------------
Ford Credit Owner Trust 2,458 5.545 2/16/99 2,453
1998--A++
- -----------------------------------------------------------------------------------------------
Ford Credit Owner Trust 5,000 5.67 6/15/99 5,000
1998--C, A-2
- -----------------------------------------------------------------------------------------------
General Electric Capital 10,000 5.557+ 6/03/99 9,995
Corporation 7,000 5.57+ 6/03/99 6,997
- -----------------------------------------------------------------------------------------------
General Motors 12,500 5.727+ 6/07/99 12,512
Acceptance Corp. 10,000 5.58+ 7/06/99 9,996
10,000 5.61+ 7/06/99 9,996
10,000 5.597+ 8/26/99 9,996
7,000 5.717+ 2/27/01 6,993
- -----------------------------------------------------------------------------------------------
Goldman Sachs 15,000 5.737+ 2/24/99 15,009
Group, L.P. 20,000 5.6875+ 3/26/99 20,004
5,000 5.687+ 9/14/99 5,001
- -----------------------------------------------------------------------------------------------
LABS Trust (Series 12,041 5.652+ 12/28/98 12,041
1996-4), Senior Notes++
- -----------------------------------------------------------------------------------------------
LABS Trust (Series 9,780 5.648+ 10/21/98 9,780
1997-6), Senior Notes++
- -----------------------------------------------------------------------------------------------
LINCS (Series 1997-4) 15,000 5.638+ 9/18/98 15,000
- -----------------------------------------------------------------------------------------------
LINCS (Series 1997-5) 14,500 5.638+ 11/18/98 14,500
- -----------------------------------------------------------------------------------------------
LINCS (Series 1998-2) 10,000 5.63+ 2/12/99 10,000
- -----------------------------------------------------------------------------------------------
Morgan (J.P.) & 20,000 5.58+ 2/24/99 19,996
Company, Inc.
- -----------------------------------------------------------------------------------------------
Morgan Stanley, Dean 4,300 5.6375 1/15/99 4,301
Witter, Discover & Co.
- -----------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
CBA Money Fund
Schedule of Investments as of August 31, 1998 (concluded) (in Thousands)
<TABLE>
<CAPTION>
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------------
Corporate Notes (concluded)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Auto Trust $ 443 5.545% 11/06/98 $ 442
1998-1, Class A-1++
- -----------------------------------------------------------------------------------------------
Premier Auto Trust 1,670 5.607+ 12/06/98 1,669
1998-2, Class A-1
- -----------------------------------------------------------------------------------------------
Premier Auto Trust 5,620 5.62 2/08/99 5,620
1998-3, Class A-1
- -----------------------------------------------------------------------------------------------
Restructured Asset 11,000 5.63+ 8/13/99 11,000
Securities with
Enhanced Returns Trust
(Series 1998-7-1)
- -----------------------------------------------------------------------------------------------
Xerox Capital 5,500 5.577+ 8/20/99 5,497
(Europe) PLC
- -----------------------------------------------------------------------------------------------
Total Corporate Notes (Cost--$373,332) ........................................... 373,316
- -----------------------------------------------------------------------------------------------
Master Notes & Funding Agreements--2.9%
- -----------------------------------------------------------------------------------------------
Goldman Sachs 40,000 5.656+ 1/20/99 40,000
Group, L.P.
- -----------------------------------------------------------------------------------------------
Jackson National 25,000 5.676+ 5/03/99 25,000
Life Insurance Co.
- -----------------------------------------------------------------------------------------------
John Hancock Mutual 5,000 5.696+ 7/30/99 5,000
Life Insurance Co.
- -----------------------------------------------------------------------------------------------
Total Master Notes & Funding Agreements
(Cost--$70,0000) ................................................................. 70,0000
- -----------------------------------------------------------------------------------------------
Medium-Term Notes--0.4%
- -----------------------------------------------------------------------------------------------
Kingdom of Sweden 5,060 6.25 12/30/98 5,066
- -----------------------------------------------------------------------------------------------
Morgan Stanley 5,000 5.625 3/01/99 5,000
Group, Inc.
- -----------------------------------------------------------------------------------------------
Total Medium-Term Notes (Cost--$10,061) .......................................... 10,066
- -----------------------------------------------------------------------------------------------
US Government & Agency Obligations--
Non-Discount Notes--15.3%
- -----------------------------------------------------------------------------------------------
Federal Home 21,000 5.52+ 10/20/98 20,999
Loan Banks 15,000 5.485+ 3/26/99 14,996
20,000 5.485+ 4/01/99 19,994
10,000 5.58+ 9/02/99 9,995
5,000 5.67 1/20/00 5,001
7,000 5.855 1/20/00 7,001
5,000 5.77 1/27/00 5,000
5,000 5.75% 3/16/00 5,000
5,000 5.865 3/17/00 5,000
5,000 5.90 7/21/00 5,000
5,000 5.875 8/18/00 5,000
- -----------------------------------------------------------------------------------------------
Federal Home Loan 15,000 5.875 5/19/00 15,008
Mortgage Corp.
- -----------------------------------------------------------------------------------------------
Federal National 20,000 5.515+ 10/20/98 19,999
Mortgage Association 25,000 5.44+ 1/21/99 24,995
5,000 5.40 2/02/99 4,998
10,000 5.38 2/12/99 9,995
42,000 5.44+ 3/03/99 41,991
27,000 5.52+ 4/09/99 26,992
25,000 5.455+ 7/30/99 24,981
10,000 5.515+ 8/19/99 9,993
- -----------------------------------------------------------------------------------------------
International Bank for 5,830 5.68 9/27/99 5,845
Reconstruction and
Development
- -----------------------------------------------------------------------------------------------
Student Loan Marketing 13,000 5.485+ 10/06/98 12,999
Association 10,000 5.53+ 11/25/98 9,999
10,000 4.50 8/02/99 9,916
20,000 5.45+ 1/12/00 19,995
3,000 5.81 1/27/00 3,001
15,000 5.475+ 2/02/00 14,995
13,600 5.495+ 2/04/00 13,595
- -----------------------------------------------------------------------------------------------
Total US Government & Agency Obligations--
Non-Discount Notes (Cost--$372,214) .............................................. 372,283
- -----------------------------------------------------------------------------------------------
Repurchase Agreements**--3.0%
- -----------------------------------------------------------------------------------------------
<CAPTION>
Face Amount Issue
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
$72,679 HSBC Securities Inc., purchased on
8/31/1998 to yield 5.85% to 9/01/1998 72,679
- -----------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost--$72,679) ...................................... 72,679
- -----------------------------------------------------------------------------------------------
Total Investments (Cost--$2,442,414)--100.7% ..................................... 2,442,447
Liabilities in Excess of Other Assets--(0.7%) .................................... (17,201)
----------
Net Assets--100.0% ............................................................... $2,425,246
==========
</TABLE>
* Commercial Paper and certain US Government & Agency Obligations are traded
on a discount basis; the interest rates shown reflect 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
August 31, 1998.
** Repurchase Agreements are fully collateralized by US Government & Agency
Obligations.
+ Variable Rate Notes.
++ Subject to principal paydowns.
See Notes to Financial Statements.
5
<PAGE>
CBA Money Fund
Statement of Assets and Liabilities as of August 31, 1998
<TABLE>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$2,442,413,980*) (Note 1a) .................. $2,442,446,597
Cash ................................................................................ 264
Interest receivable ................................................................. 15,647,205
Prepaid registration fees and other assets (Note 1e) ................................ 49,278
--------------
Total assets ........................................................................ 2,458,143,344
--------------
Liabilities:
Payables:
Securities purchased ............................................................ $30,888,309
Investment adviser (Note 2) ..................................................... 754,875
Distributor (Note 2) ............................................................ 522,119
Beneficial interest redeemed .................................................... 962 32,166,265
-----------
Accrued expenses and other liabilities .............................................. 731,462
--------------
Total liabilities ................................................................... 32,897,727
--------------
Net Assets .......................................................................... $2,425,245,617
==============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 242,521,300
Paid-in capital in excess of par .................................................... 2,182,691,700
Unrealized appreciation on investments--net ......................................... 32,617
--------------
Net Assets--Equivalent to $1.00 per share based on 2,425,213,000 shares of beneficial
interest outstanding ................................................................ $2,425,245,617
==============
</TABLE>
* The aggregate cost of investments at August 31, 1998 for Federal income
tax purposes was $2,442,413,980. As of August 31, 1998, net unrealized
appreciation for Federal income tax purposes amounted to $32,617, of which
$184,455 related to appreciated securities and $151,838 related to
depreciated securities.
See Notes to Financial Statements.
6
<PAGE>
CBA Money Fund
Statement of Operations for the Six Months Ended August 31, 1998
<TABLE>
<S> <C> <C>
Investment Income (Note 1d):
Interest and amortization of premium and discount earned $68,257,773
Expenses:
Investment advisory fees (Note 2) ...................... $ 4,967,048
Transfer agent fees (Note 2) ........................... 1,922,553
Distribution fees (Note 2) ............................. 1,480,136
Registration fees (Note 1e) ............................ 116,873
Printing and shareholder reports ....................... 79,484
Accounting services (Note 2) ........................... 78,203
Custodian fees ......................................... 59,149
Professional fees ...................................... 33,402
Trustees' fees and expenses ............................ 19,639
Other .................................................. 8,989
-----------
Total expenses before reimbursement .................... 8,765,476
Reimbursement of expenses (Note 2) ..................... (482,512)
-----------
Total expenses after reimbursement ..................... 8,282,964
-----------
Investment Income--Net ................................. 59,974,809
Realized Gain on Investments--Net (Note 1d) ............ 41,061
Change in Unrealized Appreciation on Investments--Net .. 29,114
-----------
Net Increase in Net Assets Resulting from Operations ... $60,044,984
===========
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
CBA Money Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
August 31, 1998 February 28, 1998
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net .............................................................. $ 59,974,809 $ 111,658,987
Realized gain on investments--net ................................................... 41,061 227,994
Change in unrealized appreciation/depreciation on investments--net .................. 29,114 37,859
--------------- ---------------
Net increase in net assets resulting from operations ................................ 60,044,984 111,924,840
--------------- ---------------
Dividends & Distributions to Shareholders (Note 1f):
Investment income--net .............................................................. (59,974,809) (111,658,987)
Realized gain on investments--net ................................................... (41,061) (227,994)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to shareholders (60,015,870) (111,886,981)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares .................................................... 2,977,781,884 6,033,580,870
Net asset value of shares issued to shareholders in reinvestment of dividends and
distributions (Note 1f) ............................................................. 59,910,005 111,675,227
--------------- ---------------
3,037,691,889 6,145,256,097
Cost of shares redeemed ............................................................. (2,973,157,478) (6,021,271,868)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions ............ 64,534,411 123,984,229
--------------- ---------------
Net Assets:
Total increase in net assets ........................................................ 64,563,525 124,022,088
Beginning of period ................................................................. 2,360,682,092 2,236,660,004
--------------- ---------------
End of period ....................................................................... $ 2,425,245,617 $ 2,360,682,092
=============== ===============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
CBA Money Fund
Financial Highlights
<TABLE>
<CAPTION>
The following per share data and ratios have For the
been derived from information provided in the For the Six Year Ended For the For the
financial statements. Months Ended February 28, Year Ended Year Ended
August 31, -------------------------- February 29, February 28,
Increase (Decrease) in Net Asset Value: 1998 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Investment income--net .......................... .0252 .0497 .0475 .0524 .0396
Realized and unrealized gain on investments-- net --+ .0001 --+ .0001 .0005
---------- ---------- ---------- ---------- ----------
Total from investment operations .................. .0252 .0498 .0475 .0525 .0401
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net .......................... (.0252) (.0497) (.0475) (.0524) (.0396)
Realized gain on investments--net ............... --+ (.0001) --+ (.0001) --+
---------- ---------- ---------- ---------- ----------
Total dividends and distributions ................. (.0252) (.0498) (.0475) (.0525) (.0396)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return ........................... 5.05%* 5.10% 4.87% 5.39% 4.04%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement .................... .69%* .70% .69% .75% .77%
========== ========== ========== ========== ==========
Expenses .......................................... .73%* .74% .73% .79% .81%
========== ========== ========== ========== ==========
Investment income and realized gain on
investments--net .................................. 4.98%* 4.98% 4.71% 5.22% 3.98%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) .......... $2,425,246 $2,360,682 $2,236,660 $1,988,000 $1,406,315
========== ========== ========== ========== ==========
</TABLE>
* Annualized.
+ Amount is less than $.0001 per share.
See Notes to Financial Statements.
9
<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"). 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. 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
greater than sixty days are valued at the most recent bid price or yield
equivalent as obtained from dealers that make markets in such securities. 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 for which market
value quotations are not available are valued at their fair value as determined
in good faith by or under the direction of the Fund's Board of Trustees.
(b) Repurchase agreements--The Fund invests in the money market securities
pursuant to repurchase agreements. Under such agreements, the counterparty
agrees to repurchase the security at a mutually agreed upon time and price. The
Fund takes possession of the underlying securities, marks to market such
securities and, if necessary, receives additional securities daily to ensure
that the contract is fully collateralized.
(c) 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.
(d) 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.
(e) Prepaid registration fees--Prepaid registration fees are charged to expense
as the related shares are issued.
(f) 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
10
<PAGE>
FAM is Princeton Services, Inc. ("PSI"), an indirect wholly-owned subsidiary of
Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner.
FAM 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 six months ended August 31, 1998, FAM earned $4,967,048, of which
$482,512 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.
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, and/or ML & Co.
3. Beneficial Interest Transactions:
The number of shares purchased and redeemed during the period 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.
11
<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. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other Government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund. Statements and other information herein are as
dated and are subject to change.
CBA Money Fund
Box 9011
Princeton, NJ 08543-9011 #11676--8/98
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