- --------------------------------------------------------------------------------
CBA(R) CBA
- --------------------------------------------------------------------------------
CBA CBA
- --------------------------------------------------------------------------------
CBA Money Fund
- --------------------------------------------------------------------------------
Annual Report
February 28, 1999
<PAGE>
CBA Money Fund
Dear Shareholder:
For the year ended February 28, 1999, CBA Money Fund paid shareholders a net
annualized dividend of 4.92%.* For the six-month period ended February 28, 1999,
the Fund's net annualized dividend was 4.67%.* The Fund's 7-day yield as of
February 28, 1999 was 4.33%.
The average portfolio maturity for CBA Money Fund at February 28, 1999 was 75
days compared to 72 days at August 31, 1998.
The Environment
Investor attitudes shifted markedly during the six months ended February 28,
1999. The US economy demonstrated surprising strength as 1998 drew to a close.
As 1999 began, forecasts of a possible slowdown gave way to increasing
expectations that the US economy could overheat. As a result, US long-term bond
yields backed up to mid-summer 1998 levels as investors increasingly anticipated
monetary policy tightening by the Federal Reserve Board. However, shortly after
the February quarter's close, investor confidence returned as
weaker-than-expected US employment statistics suggested that inflationary
pressures would continue to be contained and that the central bank would not
make major adjustments to its monetary policy.
Throughout the period, we remained constructive based on our view that, although
growth was strong, inflation remained benign.
As 1999 unfolds, investor focus is likely to remain on the prospects for the US
economy. For the health of the global economy overall, the ongoing recession in
Japan is of great concern. At the same time, the difficulties in emerging
economies such as Russia and Brazil remain. Progress in easing strains within
the global financial system--combined with continued evidence of noninflationary
economic growth--would likely provide an important element of stability to the
financial markets.
The portfolio's composition at the end of the February period and as of our last
report is detailed below:
2/28/99 8/31/98
------- -------
Bank Notes .................................................. 5.8% 12.9%
Certificates of Deposit ..................................... -- 1.9
Certificates of Deposit--European ........................... 1.8 0.9
Certificates of Deposit--Yankee+ ............................ 6.3 9.3
Commercial Paper ............................................ 46.9 38.7
Corporate Notes ............................................. 11.5 15.4
Master Notes & Funding Agreements ........................... 3.0 2.9
Medium-Term Notes ........................................... 2.4 0.4
Repurchase Agreements ....................................... 1.3 3.0
US Government &
Agency Obligations--Discount Notes ........................ 6.6 --
US Government &
Agency Obligations--Non-Discount Notes .................... 13.9 15.3
Other Assets Less Liabilities ............................... 0.5 --
Liabilities in Excess of Other Assets ....................... -- (0.7)
----- -----
100.0% 100.0%
===== =====
+ US branches of foreign banks.
* Based on a constant investment 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/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Marie Dwyer
Marie Dwyer
Vice President and Portfolio Manager
April 5, 1999
- --------------------------------------------------------------------------------
After more than 20 years of service, Arthur Zeikel recently retired as Chairman
of Merrill Lynch Asset Management, L.P. (MLAM). Mr. Zeikel served as President
of MLAM from 1977 to 1997 and as Chairman since December 1997. Mr. Zeikel is one
of the country's most respected leaders in asset management and presided over
the growth of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500 billion. Mr.
Zeikel will remain on CBA Money Fund's Board of Trustees. We are pleased to
announce that Terry K. Glenn has been elected President and Trustee of the Fund.
Mr. Glenn has held the position of Executive Vice President of MLAM since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in wishing him
well in his retirement from Merrill Lynch and are pleased that he will continue
as a member of the Fund's Board of Trustees.
- --------------------------------------------------------------------------------
Officers and Trustees
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Kevin J. McKenna--Senior Vice President
Joseph T. Monagle, Jr.--Senior Vice President
Marie Dwyer--Vice President
Donald C. Burke--Vice President and 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.
- --------------------------------------------------------------------------------
Gerald M. Richard, Treasurer of CBA Money Fund has recently retired. His
colleagues at Merrill Lynch Asset Management, L.P. join the Fund's Board of
Trustees in wishing Mr. Richard well in his retirement.
- --------------------------------------------------------------------------------
2
<PAGE>
CBA Money Fund
Schedule of Investments as of February 28, 1999 (in Thousands)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------
Bank Notes--5.8%
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
American Express $ 7,300 4.887%+ 3/19/99 $ 7,300
Centurion Bank
- -------------------------------------------------------------------------------------
The Bank of New York 10,000 5.57 3/17/99 10,002
- -------------------------------------------------------------------------------------
BankBoston, NA 15,000 5.70 4/15/99 15,011
- -------------------------------------------------------------------------------------
FCC National Bank 15,000 4.80+ 6/01/99 14,997
- -------------------------------------------------------------------------------------
First National Bank 15,000 4.98 7/06/99 14,997
of Chicago
- -------------------------------------------------------------------------------------
First Tennessee Bank NA 10,000 5.098+ 6/09/99 9,997
- -------------------------------------------------------------------------------------
First Union National Bank 9,800 4.84+ 9/01/99 9,800
15,000 5.02+ 11/16/99 15,004
- -------------------------------------------------------------------------------------
PNC Bank NA 15,000 4.818+ 7/01/99 14,996
25,000 4.984+ 11/03/99 25,006
- -------------------------------------------------------------------------------------
SouthTrust Bank, NA 10,000 4.83+ 3/25/99 10,000
- -------------------------------------------------------------------------------------
Total Bank Notes (Cost--$147,088) .......................................... 147,110
- -------------------------------------------------------------------------------------
Certificates of Deposit--European--1.8%
- -------------------------------------------------------------------------------------
Abbey National 10,658 5.155+ 3/08/99 10,657
Treasury Services Plc, 13,000 4.999+ 10/29/99 13,000
London 13,000 4.968+ 11/01/99 13,000
- -------------------------------------------------------------------------------------
Barclays Bank Plc, 10,000 5.70 4/07/99 10,006
London
- -------------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$46,657) ............................................................ 46,663
- -------------------------------------------------------------------------------------
Certificates of Deposit--Yankee--6.3%
- -------------------------------------------------------------------------------------
Bank Austria AG, NY 2,500 5.71 6/07/99 2,504
- -------------------------------------------------------------------------------------
Bank of Montreal, 10,000 5.69 6/15/99 10,017
Chicago
- -------------------------------------------------------------------------------------
Barclays Bank PLC, NY 7,000 5.645 3/02/99 7,000
13,000 4.78+ 6/01/99 12,997
- -------------------------------------------------------------------------------------
Bayerische Landesbank 10,000 4.803+ 6/30/99 9,998
Girozentrale, NY
- -------------------------------------------------------------------------------------
Canadian Imperial Bank 10,000 5.70 6/14/99 10,017
of Commerce, NY 5,000 5.71 6/21/99 5,009
- -------------------------------------------------------------------------------------
Commerzbank AG, NY 10,000 5.085 2/17/00 9,975
- -------------------------------------------------------------------------------------
Credit Suisse First 15,000 5.72 3/11/99 15,003
Boston, NY 10,000 4.99+ 5/12/99 10,000
4,000 5.71 7/20/99 4,008
- -------------------------------------------------------------------------------------
Rabobank Nederland 10,000 5.71 5/21/99 10,013
NV, NY
- -------------------------------------------------------------------------------------
Societe Generale, NY 10,000 5.16 2/22/00 9,982
5,000 5.22 2/28/00 4,994
- -------------------------------------------------------------------------------------
Svenska Handelsbanken 10,000 5.195 2/28/00 9,986
AB, NY
- -------------------------------------------------------------------------------------
Swiss Bank Corp., NY 15,000 5.63 3/24/99 15,004
- -------------------------------------------------------------------------------------
Westdeutsche 15,000 5.35 3/18/99 15,002
Landesbank
Girozentrale, NY
- -------------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$161,490) .......................................................... 161,509
- -------------------------------------------------------------------------------------
Commercial Paper--46.9%
- -------------------------------------------------------------------------------------
Amsterdam Funding 10,000 4.86 3/04/99 9,992
Corp. 15,000 4.87 3/23/99 14,949
18,300 4.87 3/24/99 18,236
15,000 4.88 3/30/99 14,935
- -------------------------------------------------------------------------------------
Apreco, Inc. 15,000 4.92 3/12/99 14,971
10,000 5.09 4/15/99 9,935
10,000 4.84 5/06/99 9,906
- -------------------------------------------------------------------------------------
Asset Securitization 30,000 5.15 3/05/99 29,971
Cooperative Corp. 10,000 5.20 3/10/99 9,984
30,000 5.10 3/12/99 29,942
5,000 4.90 4/12/99 4,970
10,000 5.08 4/15/99 9,935
8,000 5.08 4/16/99 7,947
- -------------------------------------------------------------------------------------
Associates First 20,000 4.82 5/13/99 19,794
Capital B.V 5,000 4.82 5/14/99 4,948
15,000 4.80 5/25/99 14,821
25,000 4.77 8/13/99 24,430
- -------------------------------------------------------------------------------------
Associates First 5,000 4.93 5/28/99 4,938
Capital Corp.
- -------------------------------------------------------------------------------------
Atlantis One Funding 11,563 5.10 4/22/99 11,477
Corp. 15,000 5.25 4/26/99 14,880
20,000 5.30 4/30/99 19,830
15,584 4.85 5/27/99 15,394
- -------------------------------------------------------------------------------------
BBL North America 15,000 5.14 3/02/99 14,992
Funding Corp.
- -------------------------------------------------------------------------------------
BankAmerica Corp. 20,000 4.79 10/05/99 19,395
- -------------------------------------------------------------------------------------
COFCO Capital Corp. 5,000 5.44 3/05/99 4,995
- -------------------------------------------------------------------------------------
CSW Credit Inc. 19,200 4.82 4/13/99 19,081
- -------------------------------------------------------------------------------------
Centric Capital Corp. 6,200 4.95 5/26/99 6,125
- -------------------------------------------------------------------------------------
China Merchants 13,000 5.17 3/10/99 12,979
(Cayman) Inc.
- -------------------------------------------------------------------------------------
Concord Minutemen 25,000 4.89 3/22/99 24,919
Capital Corp. LLC 17,000 4.85 4/08/99 16,906
25,000 4.85 5/21/99 24,715
- -------------------------------------------------------------------------------------
Corporate Asset Funding 18,500 5.20 3/03/99 18,487
Co., Inc. 15,000 5.15 3/04/99 14,988
- -------------------------------------------------------------------------------------
Corporate Receivables 7,151 4.86 4/06/99 7,113
Corp.
- -------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
CBA Money Fund
Schedule of Investments as of February 28, 1999 (continued) (in Thousands)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Commercial Paper (continued)
- -------------------------------------------------------------------------------------
DaimlerChrysler North $10,000 4.85 % 6/02/99 $ 9,870
America Holding Corp.
- -------------------------------------------------------------------------------------
Edison Asset 14,356 5.17 3/11/99 14,330
Securitization, LLC 24,529 5.10 3/18/99 24,462
15,000 5.40 3/19/99 14,957
12,242 5.05 4/09/99 12,173
- -------------------------------------------------------------------------------------
Finova Capital Corp. 20,000 5.00 4/16/99 19,868
5,000 4.98 4/20/99 4,964
6,100 4.84 5/03/99 6,045
25,000 4.83 6/09/99 24,651
18,900 4.84 6/11/99 18,631
- -------------------------------------------------------------------------------------
Ford Credit Europe Plc 15,000 4.80 5/07/99 14,858
- -------------------------------------------------------------------------------------
General Electric 20,000 4.80 5/06/99 19,813
Capital Corp. 10,000 4.80 5/07/99 9,905
10,000 4.94 5/28/99 9,877
- -------------------------------------------------------------------------------------
Grand Funding Corp. 7,475 4.87 4/05/99 7,437
10,000 4.88 4/20/99 9,929
20,000 4.83 5/04/99 19,818
12,650 4.83 5/05/99 12,533
15,000 4.84 5/05/99 14,862
7,042 4.87 5/12/99 6,970
25,000 4.86 5/26/99 24,698
- -------------------------------------------------------------------------------------
Greyhawk Capital Corp. 8,700 4.83 5/07/99 8,617
- -------------------------------------------------------------------------------------
International 15,000 5.13 3/17/99 14,961
Securitization Corp.
- -------------------------------------------------------------------------------------
Knight-Ridder, Inc. 15,000 5.10 4/16/99 14,901
10,000 5.15 4/20/99 9,929
- -------------------------------------------------------------------------------------
Lexington Parker 10,000 5.22 3/05/99 9,990
Capital Company, LLC 15,000 4.86 3/19/99 14,957
12,000 4.88 4/12/99 11,927
- -------------------------------------------------------------------------------------
Mont Blanc Capital Corp. 20,000 5.16 3/15/99 19,953
16,884 5.14 3/16/99 16,842
- -------------------------------------------------------------------------------------
Monte Rosa 10,848 5.23 3/09/99 10,832
Capital Corp.
- -------------------------------------------------------------------------------------
Riverwoods Funding 25,000 4.84 5/11/99 24,749
Corp.
- -------------------------------------------------------------------------------------
Salomon Smith Barney 6,000 5.08 3/09/99 5,991
Holdings, Inc. 20,000 5.35 3/09/99 19,970
- -------------------------------------------------------------------------------------
Thames Asset Global 23,909 4.87 4/07/99 23,780
Securitization 20,000 4.83 4/14/99 19,873
17,986 4.87 5/04/99 17,823
7,883 4.86 5/05/99 7,810
20,000 4.86 5/14/99 19,791
- -------------------------------------------------------------------------------------
Tulip Funding Corp. 8,314 4.88 4/01/99 8,276
10,000 4.89 4/06/99 9,948
15,000 4.91 4/06/99 14,921
25,000 4.86 4/29/99 24,790
- -------------------------------------------------------------------------------------
Variable Funding 10,000 4.86 3/10/99 9,984
Capital Corp.
- -------------------------------------------------------------------------------------
Vattenfall Treasury, Inc. 5,000 4.78 6/16/99 4,926
25,000 4.84 6/16/99 24,627
- -------------------------------------------------------------------------------------
WCP Funding Inc. 7,000 4.88 3/23/99 6,976
- -------------------------------------------------------------------------------------
Windmill Funding Corp. 10,000 5.15 3/16/99 9,975
11,097 4.82 4/28/99 11,005
- -------------------------------------------------------------------------------------
Total Commercial Paper (Cost--$1,199,643) ............................... 1,199,655
- -------------------------------------------------------------------------------------
Corporate Notes--11.5%
- -------------------------------------------------------------------------------------
Abbey National Treasury 10,000 4.82+ 7/20/99 9,995
Services Plc 20,000 4.91+ 8/17/99 19,993
- -------------------------------------------------------------------------------------
Associates Corp. of 5,700 6.25 3/15/99 5,701
North America
- -------------------------------------------------------------------------------------
The CIT Group Holdings, 6,000 4.82+ 3/22/99 6,000
Inc. 10,000 4.80+ 5/24/99 9,998
18,000 4.79+ 6/28/99 17,995
- -------------------------------------------------------------------------------------
Chase Manhattan 14,000 5.16+ 3/25/99 14,002
Corp.
- -------------------------------------------------------------------------------------
Credit Suisse First 15,000 4.99+ 4/09/99 15,000
Boston Inc. 15,000 4.99+ 4/20/99 15,000
- -------------------------------------------------------------------------------------
Ford Credit Auto 852 5.67 6/15/99 852
Owner Trust 1998-C,
Class A2++
- -------------------------------------------------------------------------------------
General Electric 7,000 4.82+ 6/03/99 6,999
Capital Corp. 10,000 5.146+ 6/03/99 9,998
- -------------------------------------------------------------------------------------
General Motors 12,500 5.291+ 6/07/99 12,502
Acceptance Corp. 10,000 4.83+ 7/06/99 9,998
10,000 4.94+ 7/06/99 9,998
10,000 5.16+ 8/26/99 9,996
8,000 5.411+ 12/01/00 7,996
7,000 5.28+ 2/27/01 6,997
- -------------------------------------------------------------------------------------
Goldman Sachs 20,000 5.25+ 3/26/99 20,002
Group, L.P. 5,000 5.03+ 3/14/00 4,999
- -------------------------------------------------------------------------------------
LINCS (Series 1998-2) 10,000 4.955+ 3/01/00 10,000
- -------------------------------------------------------------------------------------
LINCS (Series 1998-6) 14,500 4.975+ 11/18/99 14,500
- -------------------------------------------------------------------------------------
Liberty Lighthouse US 25,750 5.04+ 10/08/99 25,745
Capital Co. LLC
- -------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
CBA Money Fund
Schedule of Investments as of February 28, 1999 (continued) (in Thousands)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Corporate Notes (concluded)
- -------------------------------------------------------------------------------------
Restructured Asset $11,000 4.927%+ 8/13/99 $ 11,000
Securities with
Enhanced Returns Trust
(Series 1998-MM-7-1)
- -------------------------------------------------------------------------------------
Restructured Asset 12,400 5.038+ 1/21/00 12,400
Securities with
Enhanced Returns Trust
(Series 1998-MM-12-3)
- -------------------------------------------------------------------------------------
Xerox Capital 5,500 4.89+ 8/20/99 5,498
(Europe) PLC
- -------------------------------------------------------------------------------------
Total Corporate Notes (Cost--$293,176) .................................... 293,164
- -------------------------------------------------------------------------------------
Master Notes & Funding Agreements--3.0%
- -------------------------------------------------------------------------------------
Goldman Sachs 40,000 4.938+ 10/15/99 40,000
Group, L.P.
- -------------------------------------------------------------------------------------
Jackson National Life 25,000 4.96+ 5/03/99 25,000
Insurance Co.
- -------------------------------------------------------------------------------------
John Hancock Mutual 5,000 4.978+ 7/30/99 5,000
Life Insurance Co.
- -------------------------------------------------------------------------------------
Security Life of Denver 7,000 5.036+ 3/23/99 7,000
Insurance Co.
- -------------------------------------------------------------------------------------
Total Master Notes & Funding Agreements
(Cost--$77,000) ............................................................ 77,000
- -------------------------------------------------------------------------------------
Medium-Term Notes--2.4%
- -------------------------------------------------------------------------------------
Ford Motor Credit 6,850 7.75 10/01/99 6,948
Company
- -------------------------------------------------------------------------------------
General Electric Capital 5,000 5.60 1/14/00 5,014
Corp.
- -------------------------------------------------------------------------------------
General Motors 10,000 5.70 1/10/00 10,032
Acceptance Corp. 20,000 5.70 2/23/00 20,059
5,000 7.00 3/01/00 5,077
- -------------------------------------------------------------------------------------
Household Finance Corp. 10,000 6.58 5/17/99 10,028
- -------------------------------------------------------------------------------------
Morgan Stanley 5,000 5.625 3/01/99 5,000
Group, Inc.
- -------------------------------------------------------------------------------------
Total Medium-Term Notes (Cost--$62,296) .................................... 62,158
- -------------------------------------------------------------------------------------
US Government & Agency Obligations--
Discount Notes--6.6%
- -------------------------------------------------------------------------------------
Federal Home 9,384 4.77 6/02/99 9,264
Loan Banks
- -------------------------------------------------------------------------------------
Federal National 5,000 4.68 6/09/99 4,932
Mortgage Association 6,337 4.63 6/11/99 6,249
22,000 4.76 6/18/99 21,672
20,000 4.60 7/07/99 19,652
7,339 4.59 7/08/99 7,210
9,000 4.72 7/09/99 8,841
15,000 4.69 8/13/99 14,665
5,393 4.71 8/24/99 5,265
6,687 4.32 10/01/99 6,494
20,000 4.58 11/24/99 19,277
- -------------------------------------------------------------------------------------
Student Loan 5,000 4.62 6/30/99 4,918
Marketing Association
- -------------------------------------------------------------------------------------
US Treasury Bills 30,700 3.69 4/22/99 30,488
10,000 4.36 12/09/99 9,634
- -------------------------------------------------------------------------------------
Total US Government & Agency Obligations--
Discount Notes (Cost--$168,710) ............................................ 168,561
- -------------------------------------------------------------------------------------
US Government & Agency Obligations--
Non-Discount Notes--13.9%
- -------------------------------------------------------------------------------------
Federal Home 15,000 5.081+ 3/26/99 14,999
Loan Banks 20,000 5.081+ 4/01/99 19,999
10,000 5.081+ 9/02/99 9,997
20,000 4.88+ 11/09/99 19,990
- -------------------------------------------------------------------------------------
Federal Home Loan 15,000 5.875 5/19/00 15,014
Mortgage Corp. 10,000 5.05 11/17/00 9,923
10,000 5.18 11/24/00 9,940
5,000 5.25 1/19/01 4,970
5,000 5.15 1/26/01 4,961
- -------------------------------------------------------------------------------------
Federal National 42,000 5.036+ 3/03/99 42,000
Mortgage Association 27,000 5.116+ 4/09/99 26,998
10,000 4.98 5/12/99 9,999
25,000 5.051+ 7/30/99 24,991
10,000 5.111+ 8/19/99 9,996
15,000 5.08 9/24/99 14,995
12,000 4.89 10/13/00 11,890
5,000 5.21 1/26/01 4,965
- -------------------------------------------------------------------------------------
International Bank for 5,830 5.68 9/27/99 5,848
Reconstruction and
Development
- -------------------------------------------------------------------------------------
Student Loan 10,000 4.50 8/02/99 9,977
Marketing Association 20,000 5.046+ 1/12/00 19,997
</TABLE>
5
<PAGE>
CBA Money Fund
Schedule of Investments as of February 28, 1999 (concluded) (in Thousands)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------
US Government & Agency Obligations--
Non-Discount Notes (concluded)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Student Loan $15,000 5.071%+ 2/02/00 $ 14,997
Marketing Association 13,600 5.091+ 2/04/00 13,597
(concluded) 15,000 5.296+ 2/14/00 14,990
- -------------------------------------------------------------------------------------
US Treasury 10,000 6.375 5/15/00 10,145
Notes & Bonds 5,800 4.50 9/30/00 5,742
5,000 4.625 12/31/00 4,953
- -------------------------------------------------------------------------------------
Total US Government & Agency Obligations--
Non-Discount Notes (Cost--$356,340) ...................................... 355,873
- -------------------------------------------------------------------------------------
<CAPTION>
Value
Face Amount Issue (Note 1a)
- -------------------------------------------------------------------------------------
Repurchase Agreements**--1.3%
- -------------------------------------------------------------------------------------
<S> <C> <C>
$32,664 HSBC Securities Inc., purchased on
2/26/99 to yield 4.83% to 3/01/99 $ 32,664
- -------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost--$32,664) ......................................................... 32,664
- -------------------------------------------------------------------------------------
Total Investments (Cost--$2,545,064)--99.5% ............................. 2,544,357
Other Assets Less Liabilities--0.5% ..................................... 12,932
----------
Net Assets--100.0% ...................................................... $2,557,289
==========
=====================================================================================
</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
February 28, 1999.
** Repurchase Agreements are fully collateralized by US Government & Agency
Obligations.
+ Variable Rate Notes.
++ Subject to principal paydowns.
See Notes to Financial Statements.
CBA Money Fund
Statement of Assets and Liabilities as of February 28, 1999
<TABLE>
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at value (identified cost--$2,545,063,849*) (Note 1a) $ 2,544,357,048
Cash ......................................................... 10,361
Interest receivable .......................................... 13,891,747
Prepaid registration fees and other assets (Note 1e) ......... 1,405,478
---------------
Total assets ................................................. 2,559,664,634
---------------
Liabilities:
Payables:
Investment adviser (Note 2) ............................... $ 813,103
Distributor (Note 2) ...................................... 705,759 1,518,862
---------------
Accrued expenses and other liabilities ....................... 857,038
---------------
Total liabilities ............................................ 2,375,900
---------------
Net Assets ................................................... $ 2,557,288,734
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized ........................ $ 255,799,553
Paid-in capital in excess of par ............................. 2,302,195,982
Unrealized depreciation on investments--net .................. (706,801)
---------------
Net Assets--Equivalent to $1.00 per share
based on 2,557,995,534 shares of beneficial
interest outstanding ......................................... $ 2,557,288,734
===============
</TABLE>
* The aggregate cost of investments at February 28, 1999 for Federal income
tax purposes was $2,545,063,849. As of February 28, 1999, net unrealized
depreciation for Federal income tax purposes amounted to $706,801, of
which $257,582 related to appreciated securities and $964,383 related to
depreciated securities.
See Notes to Financial Statements.
6
<PAGE>
CBA Money Fund
Statement of Operations for the Year Ended February 28, 1999
<TABLE>
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income (Note 1d):
Interest and amortization of premium and discount earned ......... $ 132,711,423
Expenses:
Investment advisory fees (Note 2) ................................ $ 9,962,574
Transfer agent fees (Note 2) ..................................... 3,783,796
Distribution fees (Note 2) ....................................... 2,981,064
Registration fees (Note 1e) ...................................... 340,207
Printing and shareholder reports ................................. 177,858
Accounting services (Note 2) ..................................... 163,855
Custodian fees ................................................... 123,694
Professional fees ................................................ 55,895
Trustees' fees and expenses ...................................... 39,115
Other ............................................................ 18,810
-------------
Total expenses before reimbursement .............................. 17,646,868
Reimbursement of expenses (Note 2) ............................... (768,507)
-------------
Total expenses after reimbursement ............................... 16,878,361
-------------
Investment Income--Net ........................................... 115,833,062
Realized Gain on Investments--Net (Note 1d) ...................... 302,644
Change in Unrealized Appreciation/Depreciation on Investments--Net (710,304)
-------------
Net Increase in Net Assets Resulting from Operations ............. $ 115,425,402
=============
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
CBA Money Fund For the Year Ended
Statements of Changes in Net Assets February 28,
-----------------------------------
1999 1998
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net ................................................ $ 115,833,062 $ 111,658,987
Realized gain on investments--net ..................................... 302,644 227,994
Change in unrealized appreciation/depreciation on investments--net .... (710,304) 37,859
--------------- ---------------
Net increase in net assets resulting from operations .................. 115,425,402 111,924,840
--------------- ---------------
Dividends & Distributions to Shareholders (Note 1f):
Investment income--net ................................................ (115,833,062) (111,658,987)
Realized gain on investments--net ..................................... (302,644) (227,994)
Net decrease in net assets resulting from dividends --------------- ---------------
and distributions to shareholders ................................... (116,135,706) (111,886,981)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares ...................................... 5,841,797,113 6,033,580,870
Net asset value of shares issued to shareholders
in reinvestment of dividends and
distributions (Note 1f) ............................................. 115,925,296 111,675,227
--------------- ---------------
5,957,722,409 6,145,256,097
Cost of shares redeemed ............................................... (5,760,405,463) (6,021,271,868)
--------------- ---------------
Net increase in net assets derived from beneficial interest
transactions ....................................................... 197,316,946 123,984,229
--------------- ---------------
Net Assets:
Total increase in net assets .......................................... 196,606,642 124,022,088
Beginning of year ..................................................... 2,360,682,092 2,236,660,004
--------------- ---------------
End of year ........................................................... $ 2,557,288,734 $ 2,360,682,092
=============== ===============
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
CBA Money Fund
Financial Highlights
<TABLE>
<CAPTION>
For the
The following per share data and ratios have been derived Year Ended
from information provided in the financial statements. February 28,
-----------------------------------------
Increase (Decrease) in Net Asset Value: 1999 1998 1997
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year ........................ $ 1.00 $ 1.00 $ 1.00
----------- ----------- -----------
Investment income--net ................................. .0478 .0497 .0475
Realized and unrealized gain (loss) on investments-- net (.0002) .0001 --+
----------- ----------- -----------
Total from investment operations .......................... .0476 .0498 .0475
----------- ----------- -----------
Less dividends and distributions:
Investment income--net ................................. (.0478) (.0497) (.0475)
Realized gain on investments--net ...................... (.0001) (.0001) --+
----------- ----------- -----------
Total dividends and distributions ......................... (.0479) (.0498) (.0475)
----------- ----------- -----------
Net asset value, end of year .............................. $ 1.00 $ 1.00 $ 1.00
=========== =========== ===========
Total Investment Return ................................... 4.91% 5.10% 4.87%
=========== =========== ===========
Ratios to Average Net Assets:
Expenses, net of reimbursement ............................ .70% .70% .69%
=========== =========== ===========
Expenses .................................................. .73% .74% .73%
=========== =========== ===========
Investment income and realized gain on
investments--net .......................................... 4.79% 4.98% 4.71%
=========== =========== ===========
Supplemental Data:
Net assets, end of year (in thousands) .................... $ 2,557,289 $ 2,360,682 $ 2,236,660
=========== =========== ===========
<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, February 28,
Increase (Decrease) in Net Asset Value: 1996 1995
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year ........................ $ 1.00 $ 1.00
----------- -----------
Investment income--net ................................. .0524 .0396
Realized and unrealized gain (loss) on investments-- net .0001 .0005
----------- -----------
Total from investment operations .......................... .0525 .0401
----------- -----------
Less dividends and distributions:
Investment income--net ................................. (.0524) (.0396)
Realized gain on investments--net ...................... (.0001) --+
----------- -----------
Total dividends and distributions ......................... (.0525) (.0396)
----------- -----------
Net asset value, end of year .............................. $ 1.00 $ 1.00
=========== ===========
Total Investment Return ................................... 5.39% 4.04%
=========== ===========
Ratios to Average Net Assets:
Expenses, net of reimbursement ............................ .75% .77%
=========== ===========
Expenses .................................................. .79% .81%
=========== ===========
Investment income and realized gain on
investments--net .......................................... 5.22% 3.98%
=========== ===========
Supplemental Data:
Net assets, end of year (in thousands) .................... $ 1,988,000 $ 1,406,315
=========== ===========
</TABLE>
+ Amount is less than $.0001 per share.
See Notes to Financial Statements.
8
<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 Incorporated ("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 Fund's financial statements are prepared in accordance
with generally accepted accounting principles which may require the use of
management accruals and estimates. 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 and assets for
which market 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 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 FAM is Princeton Services, Inc.
("PSI"), an indirect
9
<PAGE>
CBA Money Fund
Notes to Financial Statements
(concluded)
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 year ended February 28, 1999, FAM earned $9,962,574, of
which $768,507 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 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.
10
<PAGE>
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, 1999, 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, 1999 by correspondence with the custodian and broker. 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, 1999, 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 8, 1999
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, 1999 qualify for the dividends received deduction
for corporations. Additionally, the Fund paid a long-term capital gain
distribution of $.0000031 per share to shareholders of record on February 28,
1999. All of this long-term capital gain distribution is subject to the 20% tax
rate.
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, 1998 .......................................... 7.52%
August 31, 1998 ....................................... 7.63
November 30, 1998 ..................................... 7.93
February 28, 1999 ..................................... 8.35
- -------------------------------------------------------------------------------
Of the Fund's ordinary income dividends paid during the year ended February 28,
1999, 7.58% 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.
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. 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. Past performance
results shown in this report should not be considered a representation of future
performance, which will fluctuate. Statements and other information herein are
as dated and are subject to change.
CBA Money Fund
Box 9011
Princeton, NJ 08543-9011
#1676 -- 2/99
[RECYLCE LOGO] Printed on post-consumer recycled paper
