- --------------------------------------------------------------------------------
CBA(R) CBA
- --------------------------------------------------------------------------------
CBA CBA
- --------------------------------------------------------------------------------
CBA Money Fund
- --------------------------------------------------------------------------------
Semi-Annual Report
August 31, 1999
<PAGE>
CBA Money Fund
Dear Shareholder:
For the six-month period ended August 31, 1999, CBA Money Fund paid shareholders
a net annualized dividend of 4.40%*. The Fund's 7-day yield as of August 31,
1999 was 4.64%.
The average portfolio maturity for CBA Money Fund at August 31, 1999 was 71
days, compared to 75 days at February 28, 1999.
The Environment
During the latter half of the six months ended August 31, 1999, the interest
rate environment dominated the US capital markets. Investors were concerned that
the ongoing strength in the economy would prompt the Federal Reserve Board into
a round of tightening of the Federal Funds rate. At the end of June, there was
relief when the Federal Reserve Board only raised interest rates by 25 basis
points (0.25%). However, there were continued signs of strength in the economy,
and the Federal Reserve Board raised short-term interest rates another 0.25% on
August 24, 1999.
The US equity market, as measured by the Standard & Poor's 500 Index, rose 1.75%
for the three months ended August 31, 1999. The market rose very strongly at the
end of June when it appeared that the quarter-point increase in the Federal
Funds rate might be sufficient to address the central bank's inflationary
concerns. However, sentiment deteriorated in July and August as a result of
continued strong economic data and widening credit spreads. The US dollar also
weakened during the period, keeping upward pressure on bond yields for the near
term.
The portfolio's composition at the end of the August period and as of our last
report is detailed below:
8/31/99 2/28/99
------- -------
Bank Notes ..................................... 8.2% 5.8%
Certificates of Deposit ........................ 1.0 --
Certificates of Deposit--
European ..................................... 1.1 1.8
Certificates of Deposit--
Yankee+ ...................................... 9.2 6.3
Commercial Paper ............................... 48.9 46.9
Corporate Notes ................................ 1.8 11.5
Master Notes &
Funding Agreements ........................... 3.7 3.0
Medium-Term Notes .............................. 14.2 2.4
Repurchase Agreements .......................... -- 1.3
US Government &
Agency Obligations--
Discount Notes ............................... 1.5 6.6
US Government &
Agency Obligations--
Non-Discount Notes ........................... 10.0 13.9
Other Assets Less Liabilities .................. 0.4 0.5
----- -----
100.0% 100.0%
===== =====
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
+ US branches of foreign banks.
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/ Robert Sabatino
Robert Sabatino
Vice President and Portfolio Manager
October 6, 1999
- --------------------------------------------------------------------------------
We are pleased to announce that Robert Sabatino is responsible for the
day-to-day management of CBA Money Fund. Mr. Sabatino has been employed by
Merrill Lynch Asset Management, L.P. since 1995 and has been Vice President
since 1998.
- --------------------------------------------------------------------------------
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
Robert Sabatino--Vice President
Donald C. Burke--Vice President and Treasurer
Ira P. Shapiro--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, 1999 (in Thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------
Bank Notes--8.2%
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Express $20,000 5.45%+ 4/17/00 $ 20,000
Centurion Bank 25,000 5.45+ 4/27/00 25,000
30,000 5.45+ 5/10/00 30,000
30,000 5.50+ 7/13/00 30,000
- -----------------------------------------------------------------------------------------
First Union 9,800 5.31+ 9/01/99 9,800
National Bank 15,000 5.473+ 11/16/99 15,004
- -----------------------------------------------------------------------------------------
KeyBank 20,500 5.32+ 2/21/00 20,493
National Association
- -----------------------------------------------------------------------------------------
NationsBank NA 25,000 5.42+ 3/16/00 24,996
- -----------------------------------------------------------------------------------------
PNC Bank NA 25,000 5.358+ 11/03/99 24,992
- -----------------------------------------------------------------------------------------
Total Bank Notes (Cost--$200,288) ....................................... 200,285
- -----------------------------------------------------------------------------------------
Certificates of Deposit--1.0%
- -----------------------------------------------------------------------------------------
First Union 25,000 5.405+ 8/31/00 24,883
National Bank
- -----------------------------------------------------------------------------------------
Total Certificates of Deposit
(Cost--$25,000) ......................................................... 24,883
- -----------------------------------------------------------------------------------------
Certificates of Deposit--European--1.1%
- -----------------------------------------------------------------------------------------
Abbey National Treasury 13,000 5.343+ 10/29/99 12,994
Services PLC, London 13,000 5.21+ 11/01/99 13,000
- -----------------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$26,000) ......................................................... 25,994
- -----------------------------------------------------------------------------------------
Certificates of Deposit--Yankee--9.2%
- -----------------------------------------------------------------------------------------
Commerzbank AG, NY 10,000 5.085 2/17/00 9,949
10,000 5.17 3/31/00 9,943
35,000 5.128+ 4/10/00 34,989
20,000 5.15 5/08/00 19,865
- -----------------------------------------------------------------------------------------
Credit Agricole 20,000 5.16 4/03/00 19,884
Indosuez, NY
- -----------------------------------------------------------------------------------------
Credit Suisse First 25,000 5.47+ 6/07/00 24,979
Boston, NY
- -----------------------------------------------------------------------------------------
Deutsche Bank AG, NY 25,000 5.38+ 4/26/00 24,988
22,000 5.62 6/26/00 21,907
- -----------------------------------------------------------------------------------------
Societe Generale, NY 10,000 5.16 2/22/00 9,952
5,000 5.22 2/28/00 4,977
- -----------------------------------------------------------------------------------------
Svenska Handelsbanken 10,000 5.195 2/28/00 9,952
AB, NY
- -----------------------------------------------------------------------------------------
UBS AG, NY 10,000 5.25 3/10/00 9,952
25,000 5.29 5/18/00 24,850
- -----------------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$226,926) ........................................................ 226,187
- -----------------------------------------------------------------------------------------
Commercial Paper--48.9%
- -----------------------------------------------------------------------------------------
AT&T Corp. 35,000 5.27 7/13/00 34,986
25,000 5.26 8/07/00 25,000
- -----------------------------------------------------------------------------------------
Amsterdam Funding 25,000 5.28 9/23/99 24,916
Corp. 20,000 5.78 2/04/00 19,494
- -----------------------------------------------------------------------------------------
Apreco, Inc. 15,275 5.31 9/20/99 15,230
25,000 5.24 9/23/99 24,916
29,000 5.35 10/20/99 28,785
- -----------------------------------------------------------------------------------------
Associates First 35,000 5.18 9/03/99 34,985
Capital Corp. 40,000 5.18 10/05/99 39,799
- -----------------------------------------------------------------------------------------
Atlantis One 10,000 4.82 9/24/99 9,966
Funding Corp.
- -----------------------------------------------------------------------------------------
BankAmerica 20,000 4.79 10/05/99 19,899
Corporation
- -----------------------------------------------------------------------------------------
CXC Incorporated 50,000 5.33 10/19/99 49,637
- -----------------------------------------------------------------------------------------
Corporate Asset 12,000 5.08 9/08/99 11,986
Funding Co., Inc. 25,000 5.35 11/04/99 24,761
- -----------------------------------------------------------------------------------------
Corporate Receivables 50,000 5.33 10/28/99 49,573
Corp.
- -----------------------------------------------------------------------------------------
Edison Asset 23,543 5.55 9/01/99 23,539
Securitization, LLC 14,528 5.35 10/18/99 14,424
- -----------------------------------------------------------------------------------------
Finova Capital Corp. 10,000 5.24 9/03/99 9,996
5,000 5.25 9/21/99 4,985
10,000 5.30 9/24/99 9,965
20,000 4.88 10/14/99 19,871
5,000 4.88 10/18/99 4,965
25,000 5.85 2/18/00 24,314
- -----------------------------------------------------------------------------------------
GE Capital International 30,000 5.17 10/13/99 29,811
Funding, Inc.
- -----------------------------------------------------------------------------------------
General Motors 20,000 5.72 3/13/00 19,374
Acceptance Corp.
- -----------------------------------------------------------------------------------------
Grand Funding Corp. 10,000 5.20 9/15/99 9,978
40,000 5.30 9/21/99 39,876
13,000 5.28 9/24/99 12,954
- -----------------------------------------------------------------------------------------
Greenwich Funding Corp. 20,278 5.20 9/27/99 20,200
- -----------------------------------------------------------------------------------------
International 10,760 5.18 9/02/99 10,757
Securitization Corp. 25,000 5.20 9/17/99 24,939
10,105 5.15 10/04/99 10,056
23,620 5.17 10/07/99 23,495
- -----------------------------------------------------------------------------------------
Kitty Hawk Funding 6,281 5.29 9/16/99 6,266
Corp. 22,322 5.78 2/15/00 21,719
- -----------------------------------------------------------------------------------------
Lehman Brothers 15,000 5.25 10/07/99 14,920
Holdings Inc. 25,000 5.90 2/16/00 24,321
- -----------------------------------------------------------------------------------------
Old Line Funding Corp. 20,000 5.20 9/02/99 19,994
- -----------------------------------------------------------------------------------------
Park Avenue 7,000 5.25 9/01/99 6,999
Receivables Corp. 4,500 5.369+ 2/11/00 4,500
- -----------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
CBA Money Fund
Schedule of Investments as of August 31, 1999 (continued) (in Thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------
Commercial Paper (concluded)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Riverwoods Funding $35,000 5.20% 9/09/99 $ 34,955
Corp. 15,000 5.34 10/26/99 14,875
- -----------------------------------------------------------------------------------------
Santander Finance 5,000 5.33 12/13/99 4,923
(Delaware) Inc.
- -----------------------------------------------------------------------------------------
Tulip Funding Corp. 30,000 5.30 9/17/99 29,925
65,000 5.16 9/21/99 64,807
9,215 5.19 10/14/99 9,156
9,472 5.19 10/15/99 9,410
- -----------------------------------------------------------------------------------------
Variable Funding 30,455 5.14 9/17/99 30,381
Capital Corp. 10,000 5.28 9/20/99 9,971
30,000 5.30 9/20/99 29,912
10,000 5.18 9/21/99 9,970
25,000 5.35 10/22/99 24,807
15,000 5.35 10/25/99 14,877
- -----------------------------------------------------------------------------------------
WCP Funding Inc. 55,000 5.30 9/28/99 54,773
8,413 5.35 10/08/99 8,366
- -----------------------------------------------------------------------------------------
Windmill Funding Corp. 10,000 5.20 9/01/99 9,999
10,000 5.22 9/13/99 9,981
- -----------------------------------------------------------------------------------------
Total Commercial Paper
(Cost--$1,197,245) ...................................................... 1,197,239
- -----------------------------------------------------------------------------------------
Corporate Notes--1.8%
- -----------------------------------------------------------------------------------------
LINCS (Series 1998-2) 10,000 5.289+ 3/01/00 10,000
- -----------------------------------------------------------------------------------------
LINCS (Series 1998-6) 14,500 5.028+ 11/18/99 14,500
- -----------------------------------------------------------------------------------------
Restructured Asset 8,000 5.308+ 8/11/00 8,000
Securities with
Enhanced Returns
Series 1998-MM-7-1 Trust
- -----------------------------------------------------------------------------------------
Restructured Asset 12,400 5.309+ 1/21/00 12,400
Securities with
Enhanced Returns
Series 1998-MM-12-3 Trust
- -----------------------------------------------------------------------------------------
Total Corporate Notes (Cost--$44,900) ................................... 44,900
- -----------------------------------------------------------------------------------------
Master Notes & Funding Agreements--3.7%
- -----------------------------------------------------------------------------------------
Goldman Sachs 40,000 5.18+ 10/15/99 40,000
Group, Inc.
- -----------------------------------------------------------------------------------------
Jackson National Life 25,000 5.20+ 5/01/00 25,000
Insurance Co.
- -----------------------------------------------------------------------------------------
John Hancock Mutual 5,000 5.26+ 8/01/00 5,000
Life Insurance Co.
- -----------------------------------------------------------------------------------------
Metropolitan Life 13,000 5.23+ 5/01/00 13,000
Insurance Company
- -----------------------------------------------------------------------------------------
Security Life of Denver 7,000 5.415+ 3/23/00 7,000
Insurance Co.
- -----------------------------------------------------------------------------------------
Total Master Notes & Funding Agreements
(Cost--$90,000) ......................................................... 90,000
- -----------------------------------------------------------------------------------------
Medium-Term Notes--14.2%
- -----------------------------------------------------------------------------------------
American Honda 24,750 5.18+ 8/01/00 24,743
Finance Corp.
- -----------------------------------------------------------------------------------------
Associates Corporation 30,000 5.90 6/23/00 29,918
of North America
- -----------------------------------------------------------------------------------------
Avco Financial 10,000 5.358+ 3/31/00 9,998
Services Inc.
- -----------------------------------------------------------------------------------------
Beneficial Corp. 10,000 5.205+ 3/13/00 10,001
- -----------------------------------------------------------------------------------------
The CIT Group 20,000 5.39+ 3/27/00 19,993
Holdings, Inc. 23,000 5.405+ 5/30/00 22,991
- -----------------------------------------------------------------------------------------
Ford Motor 16,850 7.75 10/01/99 16,880
Credit Company 6,000 6.375+ 4/03/00 6,005
12,000 5.45+ 5/05/00 12,000
20,000 5.45+ 5/23/00 20,000
- -----------------------------------------------------------------------------------------
General Electric 5,000 5.60 1/14/00 5,001
Capital Corp. 5,500 5.293+ 5/03/00 5,498
- -----------------------------------------------------------------------------------------
General Motors 10,000 5.70 1/10/00 10,003
Acceptance Corp. 20,000 5.70 2/23/00 19,992
5,000 7.00 3/01/00 5,030
10,000 5.75 7/28/00 9,969
8,000 5.201+ 12/01/00 7,995
7,000 5.526+ 2/27/01 7,004
- -----------------------------------------------------------------------------------------
Goldman Sachs 14,000 6.00 8/07/00 13,957
Group, Inc. 5,000 5.08+ 9/12/00 5,000
- -----------------------------------------------------------------------------------------
International Bank for 5,830 5.68 9/27/99 5,832
Reconstruction &
Development
- -----------------------------------------------------------------------------------------
Liberty Lighthouse 25,750 5.29+ 10/08/99 25,739
US Capital Co. LLC
- -----------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
CBA Money Fund
Schedule of Investments as of August 31, 1999 (concluded) (in Thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------
Medium-Term Notes (concluded)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wells Fargo & Co. $10,000 5.225% 4/10/00 $ 9,960
10,000 5.208 4/26/00 9,989
- -----------------------------------------------------------------------------------------
Xerox Capital 5,000 5.248+ 7/19/00 4,993
(Europe) PLC
- -----------------------------------------------------------------------------------------
Xerox Credit Corp. 9,000 5.37 4/06/00 8,996
20,000 5.70 7/26/00 19,946
- -----------------------------------------------------------------------------------------
Total Medium-Term Notes
(Cost--$347,888) ........................................................... 347,433
- -----------------------------------------------------------------------------------------
US Government & Agency Obligations--
Discount Notes--1.5%
- -----------------------------------------------------------------------------------------
Federal National 6,687 4.32 10/01/99 6,658
Mortgage Association 20,000 4.58 11/24/99 19,754
- -----------------------------------------------------------------------------------------
US Treasury Bills 10,000 4.36 12/09/99 9,866
- -----------------------------------------------------------------------------------------
Total US Government & Agency Obligations--
Discount Notes (Cost--$36,325) .......................................... 36,278
- -----------------------------------------------------------------------------------------
US Government & Agency Obligations--
Non-Discount Notes--10.0%
- -----------------------------------------------------------------------------------------
Federal Home 10,000 5.521+ 9/02/99 10,000
Loan Banks 20,000 5.24+ 11/09/99 19,997
23,000 5.451+ 7/14/00 22,990
- -----------------------------------------------------------------------------------------
Federal Home Loan 25,000 5.491+ 7/14/00 24,989
Mortgage Corporation 10,000 5.05 11/17/00 9,887
- -----------------------------------------------------------------------------------------
Federal Home Loan 10,000 5.18 11/24/00 9,899
Mortgage Corporation 5,000 5.25 1/19/01 4,945
(concluded) 5,000 5.15 1/26/01 4,937
- -----------------------------------------------------------------------------------------
Federal National 15,000 5.08 9/24/99 14,999
Mortgage Association 12,000 4.89 10/13/00 11,858
5,000 5.21 1/26/01 4,942
10,000 5.37 4/05/01 9,882
- -----------------------------------------------------------------------------------------
Student Loan 20,000 5.391+ 1/12/00 19,999
Marketing Association 15,000 5.416+ 2/02/00 14,998
13,600 5.436+ 2/04/00 13,599
15,000 5.641+ 2/14/00 14,995
- -----------------------------------------------------------------------------------------
US Treasury Notes 10,000 6.375 5/15/00 10,062
5,800 4.50 9/30/00 5,731
5,000 4.625 12/31/00 4,931
10,000 5.00 4/30/01 9,881
- -----------------------------------------------------------------------------------------
Total US Government & Agency
Obligations--Non-Discount Notes
(Cost--$244,472) ........................................................ 243,521
- -----------------------------------------------------------------------------------------
Total Investments (Cost--$2,439,044)--99.6% ............................. 2,436,720
Other Assets Less Liabilities--0.4% ..................................... 9,516
----------
Net Assets--100.0% ...................................................... $2,446,236
==========
=========================================================================================
</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, 1999.
+ Variable rate notes.
See Notes to Financial Statements.
5
<PAGE>
CBA Money Fund
Statement of Assets and Liabilities as of August 31, 1999
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at value (identified cost--$2,439,044,130*) (Note 1a) .................. $ 2,436,720,028
Cash ................................................................................ 687
Interest receivable ................................................................. 12,052,125
Prepaid registration fees and other assets (Note 1e) ................................ 81,747
---------------
Total assets ........................................................................ 2,448,854,587
---------------
Liabilities:
Payables:
Investment adviser (Note 2) ..................................................... $ 880,204
Distributor (Note 2) ............................................................ 554,664
Beneficial interest redeemed .................................................... 1,403
Dividends to shareholders (Note 1f) ............................................. 630 1,436,901
-------------
Accrued expenses and other liabilities .............................................. 1,181,241
---------------
Total liabilities ................................................................... 2,618,142
---------------
Net Assets .......................................................................... $ 2,446,236,445
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 244,856,055
Paid-in capital in excess of par .................................................... 2,203,704,492
Unrealized depreciation on investments--net ......................................... (2,324,102)
---------------
Net Assets--Equivalent to $1.00 per share based on 2,448,560,547 shares of beneficial
interest outstanding ................................................................ $ 2,446,236,445
===============
</TABLE>
* The aggregate cost of investments at August 31, 1999 for Federal income
tax purposes was $2,439,044,130. As of August 31, 1999, net unrealized
depreciation for Federal income tax purposes amounted to $2,324,102, of
which $42,559 related to appreciated securities and $2,366,661 related to
depreciated securities.
See Notes to Financial Statements.
6
<PAGE>
CBA Money Fund
Statement of Operations for the Six Months Ended August 31, 1999 Investment
<TABLE>
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Income (Note 1d):
Interest and amortization of premium and discount earned ......... $ 64,353,897
Expenses:
Investment advisory fees (Note 2) ................................ $ 5,213,284
Transfer agent fees (Note 2) ..................................... 1,901,101
Distribution fees (Note 2) ....................................... 1,552,158
Accounting services (Note 2) ..................................... 100,302
Printing and shareholder reports ................................. 82,153
Trustees' fees and expenses ...................................... 20,290
Custodian fees ................................................... 17,937
------------
Total expenses ................................................... 8,887,225
------------
Investment Income--Net ........................................... 55,466,672
Realized Gain on Investments--Net (Note 1d) ...................... 14,513
Change in Unrealized Depreciation on Investments--Net ............ (1,617,301)
------------
Net Increase in Net Assets Resulting from Operations ............. $ 53,863,884
============
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
CBA Money Fund For the Six For the
Months Ended Year Ended
Statements of Changes in Net Assets August 31, 1999 February 28, 1999
- --------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income--net ........................................... $ 55,466,672 $ 115,833,062
Realized gain on investments--net ................................ 14,513 302,644
Change in unrealized appreciation/depreciation on investments--net (1,617,301) (710,304)
--------------- ---------------
Net increase in net assets resulting from operations ............. 53,863,884 115,425,402
--------------- ---------------
Dividends & Distributions to Shareholders (Note 1f):
Investment income--net ........................................... (55,466,672) (115,833,062)
Realized gain on investments--net ................................ (14,513) (302,644)
--------------- ---------------
Net decrease in net assets resulting from dividends and
distributions to shareholders .................................... (55,481,185) (116,135,706)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares ................................. 2,873,786,987 5,841,797,113
Net asset value of shares issued to shareholders in reinvestment
of dividends and distributions (Note 1f) ......................... 55,376,647 115,925,296
--------------- ---------------
2,929,163,634 5,957,722,409
Cost of shares redeemed .......................................... (3,038,598,622) (5,760,405,463)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial
interest transactions ............................................ (109,434,988) 197,316,946
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets .......................... (111,052,289) 196,606,642
Beginning of period .............................................. 2,557,288,734 2,360,682,092
--------------- ---------------
End of period .................................................... $ 2,446,236,445 $ 2,557,288,734
=============== ===============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
CBA Money Fund
Financial Highlights
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
For the
The following per share data and ratios have been derived For the Six Year Ended For the
from information provided in the financial statements. Months Ended February 28, Year Ended
August 31, --------------------------------------- February 29,
Increase (Decrease) in Net Asset Value: 1999 1999 1998 1997 1996
- ---------------------------------------------------------------------------------------------------------------------------------
<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 ................................. .0223 .0478 .0497 .0475 .0524
Realized and unrealized gain (loss) on investments-- net (.0006) (.0002) .0001 --** .0001
----------- ----------- ----------- ----------- -----------
Total from investment operations ......................... .0217 .0476 .0498 .0475 .0525
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net ................................. (.0223) (.0478) (.0497) (.0475) (.0524)
Realized gain on investments--net ...................... --** (.0001) (.0001) --** (.0001)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions ........................ (.0223) (.0479) (.0498) (.0475) (.0525)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Investment Return .................................. 4.40%* 4.91% 5.10% 4.87% 5.39%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets:
Expenses, net of reimbursement ........................... .70%* .70% .70% .69% .75%
=========== =========== =========== =========== ===========
Expenses ................................................. .70%* .73% .74% .73% .79%
=========== =========== =========== =========== ===========
Investment income and realized gain on
investments--net ......................................... 4.36% 4.79% 4.98% 4.71% 5.22%
=========== =========== =========== =========== ===========
Supplemental Data:
Net assets, end of period (in thousands) ................. $ 2,446,236 $ 2,557,289 $ 2,360,682 $ 2,236,660 $ 1,988,000
=========== =========== =========== =========== ===========
</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 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. 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. 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, for which market quotations are readily available, are
valued at market value. 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.
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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 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: .50% of the first $500 million of average daily net assets, .425%
of average daily net assets in excess of $500 million but not exceeding $1
billion, and .375% of average daily net assets in excess of $1 billion.
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 .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, reinvested and redeemed during the six-month
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.
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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 #11676 -- 8/99
[RECYCLE LOGO] Printed on post-consumer recycled paper
