--------------------------------------------------------------------------------
CBA(R) CBA
--------------------------------------------------------------------------------
CBA CBA
--------------------------------------------------------------------------------
CBA Money Fund
--------------------------------------------------------------------------------
Semi-Annual Report
August 31, 2000
<PAGE>
CBA Money Fund
Dear Shareholder:
For the six-month period ended August 31, 2000, CBA Money Fund paid shareholders
a net annualized dividend of 5.68%.* The Fund's 7-day yield as of August 31,
2000 was 5.94%.
The average portfolio maturity for CBA Money Fund at August 31, 2000 was 63
days, compared to 59 days at February 29, 2000.
The Environment
By August 31, 2000, it seemed that the economy was beginning to moderate from
the unsustainable growth rate of the previous three quarters. The 100 basis
point (1.00%) increase in the Federal Funds rate so far this year has begun to
have an effect. The unbridled enthusiasm for US equities also moderated, with
major equity indexes slightly negative for the year. Earnings shortfalls and
slower economic growth have combined to bring stock prices to more realistic
levels. Evidence of slowing consumer demand has been seen in auto sales, which
are running behind 1999's rate. Real estate sales are mixed, but the overall
trend may be an indication that higher interest rates are slowing down this
sector as well. Although the labor market is still tight, with the unemployment
rate hovering around 4%, continued productivity gains will most likely alleviate
inflationary pressures from gains in wages and benefits. The extraordinary rise
in oil and gasoline prices during the spring and summer have undoubtedly had an
influence on consumers' perceptions, and may have contributed to the drop in
consumer confidence. Investors are hoping that the economy has a soft landing,
with gross domestic product growth more in line with the Federal Reserve Board's
target of about 3%, making further rate increases unnecessary.
Portfolio Matters
During the majority of the six-month period ended August 31, 2000, we maintained
a defensive stance for the Fund, given the rising interest rate environment.
Toward the end of the period, signs of decreased growth within the economy led
us to become more constructive. In anticipation of any possible continuing
Federal Reserve Board tightening, we purchased commercial paper maturing prior
to each of the Federal Open Market Committee meetings to benefit from the
increase in interest rates. As the Treasury Department continued efforts to
reduce supply in the long end of the yield curve, we believed there would be
increased issuance of three-month Treasury bills, so we purchased floating rate
notes linked to three-month bills. During the last half of the period, we took
advantage of additional tightening that was priced into the market by purchasing
one-year fixed rate bank notes at yields that compensated for the potential of
higher interest rates. Going forward, we believe that interest rates will remain
unchanged as long as productivity gains continue to negate inflationary
pressures.
* 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>
The portfolio's composition at the end of the August period and as of our last
report is detailed below:
8/31/00 2/29/00
------- -------
Bank Notes ..................................... 4.0% 7.6%
Certificates of Deposit ........................ 1.2 1.0
Certificates of Deposit--
European .................................... 2.3 --
Certificates of Deposit--
Yankee+ ..................................... 16.2 10.3
Commercial Paper ............................... 45.6 50.5
Corporate Notes ................................ 2.3 2.7
Funding Agreements ............................. 2.5 2.5
Medium-Term Notes .............................. 14.1 15.9
Promissory Notes ............................... 1.9 1.6
US Government &
Agency Obligations--
Non-Discount Notes .......................... 9.3 7.8
Other Assets Less Liabilities .................. 0.6 0.1
----- -----
100.0% 100.0%
===== =====
+ US branches of foreign banks.
In Conclusion
We appreciate your continued support of CBA Money Fund, and we look forward to
assisting you with your financial needs in the months and years ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Robert Sabatino
Robert Sabatino
Vice President and Portfolio Manager
September 28, 2000
2
<PAGE>
CBA Money Fund
Schedule of Investments as of August 31, 2000 (in Thousands)
--------------------------------------------------------------------------------
Face Interest Maturity
Issue Amount Rate* Date Value
--------------------------------------------------------------------------------
Bank Notes--4.0%
--------------------------------------------------------------------------------
Bank of America, NA $30,000 6.65+ % 6/06/01 $ 29,996
--------------------------------------------------------------------------------
Comerica Bank 25,000 6.64+ 6/01/01 24,995
--------------------------------------------------------------------------------
First USA Bank NA 20,000 6.215 10/18/00 19,982
--------------------------------------------------------------------------------
U.S. Bank, NA 10,000 6.71+ 12/20/00 10,001
--------------------------------------------------------------------------------
Total Bank Notes (Cost--$84,990) ............................ 84,974
--------------------------------------------------------------------------------
Certificates of Deposit--1.2%
--------------------------------------------------------------------------------
SouthTrust Bank, NA 25,000 6.86 12/19/00 25,004
--------------------------------------------------------------------------------
Total Certificates of Deposit (Cost--$25,000) ............... 25,004
--------------------------------------------------------------------------------
Certificates of Deposit--European--2.3%
--------------------------------------------------------------------------------
Bayerische Hypo und- 9,000 6.93 12/27/00 9,003
Vereinsbank AG, London
--------------------------------------------------------------------------------
Landesbank Baden- 40,000 6.67 10/20/00 40,004
Wurttemberg, London
--------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$48,999) ............................................. 49,007
--------------------------------------------------------------------------------
Certificates of Deposit--Yankee--16.2%
--------------------------------------------------------------------------------
Banco Bilbao 27,000 6.88 8/24/01 26,986
Vizcaya Argentina
S.A., NY
--------------------------------------------------------------------------------
Bank Austria AG, NY 22,000 6.06 11/20/00 21,956
--------------------------------------------------------------------------------
Bank of Nova 25,000 6.78 2/22/01 24,973
Scotia, NY
--------------------------------------------------------------------------------
Bayerische 27,000 6.61 3/07/01 26,949
Landesbank
Girozentrale, NY
--------------------------------------------------------------------------------
Commerzbank AG, NY 25,750 6.76 3/27/01 25,721
27,000 7.09 6/22/01 27,023
17,000 7.00 8/02/01 17,008
23,000 6.89 8/20/01 22,989
--------------------------------------------------------------------------------
Credit Communal de 10,000 5.96 10/02/00 9,991
Belgique, NY
--------------------------------------------------------------------------------
Royal Bank of 25,000 6.62+ 6/07/01 24,990
Canada, NY 50,000 6.615+ 7/06/01 50,000
--------------------------------------------------------------------------------
Svenska 15,000 6.65 3/06/01 14,974
Handelsbanken 23,000 6.98 7/12/01 23,003
AB, NY
--------------------------------------------------------------------------------
Westdeutsche 25,000 6.55+ 3/23/01 24,993
Landesbank
Girozentrale, NY
--------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$341,650) ............................................ 341,556
--------------------------------------------------------------------------------
Commercial Paper--45.6%
--------------------------------------------------------------------------------
AT&T Corporation 30,000 6.56 3/08/01 29,997
16,000 6.751 7/13/01 16,003
--------------------------------------------------------------------------------
American Honda 11,000 6.60 9/11/00 10,978
Finance Corp.
--------------------------------------------------------------------------------
Amsterdam Funding 20,000 6.51 10/03/00 19,881
Corporation 41,543 6.52 10/06/00 41,272
--------------------------------------------------------------------------------
Apreco, Inc. 25,000 6.55 10/16/00 24,793
--------------------------------------------------------------------------------
Asset Securitization 43,000 6.57 10/05/00 42,727
Cooperative Corp.
--------------------------------------------------------------------------------
Bear Stearns 50,000 6.54 10/23/00 49,522
Companies, Inc.
--------------------------------------------------------------------------------
Bills Securitization Ltd. 15,000 6.61 9/06/00 14,983
7,211 6.52 9/07/00 7,202
20,000 6.61 9/14/00 19,949
--------------------------------------------------------------------------------
CBA (Delaware) 10,000 6.60 2/01/01 9,722
Finance Inc.
--------------------------------------------------------------------------------
CSW Credit Inc. 23,000 6.53 10/05/00 22,854
--------------------------------------------------------------------------------
Clipper Receivables 17,038 6.61 9/06/00 17,019
Corp.
--------------------------------------------------------------------------------
Corporate Receivables 25,000 6.60 9/19/00 24,914
Corp.
--------------------------------------------------------------------------------
Credit Suisse First 30,000 6.65 12/15/00 29,426
Boston International
(Guernsey) Ltd.
--------------------------------------------------------------------------------
Delaware Funding Corp. 20,312 6.53 10/16/00 20,144
--------------------------------------------------------------------------------
Den Norske Bank ASA 25,000 6.53 2/14/01 24,246
--------------------------------------------------------------------------------
EW Scripps 11,440 6.60 9/14/00 11,411
Company (The)
--------------------------------------------------------------------------------
Edison Asset 62,000 6.56 10/23/00 61,408
Securitization, LLC
--------------------------------------------------------------------------------
Formosa Plastics Corp- 9,750 6.63 9/07/00 9,738
oration, USA, Series B
--------------------------------------------------------------------------------
Forrestal Funding 20,000 6.57 10/13/00 19,845
Master Trust 25,000 6.57 10/19/00 24,780
--------------------------------------------------------------------------------
Fortis Funding LLC 40,000 6.53 10/10/00 39,711
--------------------------------------------------------------------------------
General Electric 10,000 6.695 10/04/00 9,998
Capital Corp.
--------------------------------------------------------------------------------
Goldman Sachs 48,000 6.55 10/17/00 47,594
Group, Inc.
--------------------------------------------------------------------------------
Intrepid Funding 43,884 6.54 11/02/00 43,386
Master Trust
--------------------------------------------------------------------------------
Monte Rosa Capital 20,703 6.51 10/02/00 20,583
Corporation
--------------------------------------------------------------------------------
Nordbanken North 25,000 6.60 1/26/01 24,332
America, Inc.
--------------------------------------------------------------------------------
Park Avenue 15,207 6.51 10/04/00 15,114
Receivables Corp.
--------------------------------------------------------------------------------
Salomon, Smith 25,000 6.60 9/20/00 24,909
Barney Holdings, Inc.
--------------------------------------------------------------------------------
Spintab AB 20,000 6.585 1/29/01 19,455
--------------------------------------------------------------------------------
3
<PAGE>
CBA Money Fund
Schedule of Investments as of August 31, 2000 (concluded) (in Thousands)
--------------------------------------------------------------------------------
Face Interest Maturity
Issue Amount Rate* Date Value
--------------------------------------------------------------------------------
Commercial Paper (concluded)
--------------------------------------------------------------------------------
Tulip Funding Corp. $15,000 6.62 % 9/13/00 $ 14,965
25,000 6.55 10/25/00 24,753
--------------------------------------------------------------------------------
UBS Finance 18,382 6.60 9/05/00 18,365
(Delaware) Inc.
--------------------------------------------------------------------------------
Unilever Capital Corp. 15,000 6.649 9/07/01 15,000
--------------------------------------------------------------------------------
Variable Funding 25,000 6.62 9/07/00 24,968
Capital Corp.
--------------------------------------------------------------------------------
WCP Funding Inc. 45,000 6.60 9/19/00 44,845
--------------------------------------------------------------------------------
Woolwich PLC 18,000 6.625 12/18/00 17,646
--------------------------------------------------------------------------------
Total Commercial Paper (Cost--$958,353) .................... 958,438
--------------------------------------------------------------------------------
Corporate Notes--2.3%
--------------------------------------------------------------------------------
LINCS, Series 1998-2 10,000 6.619+ 3/01/01 10,000
--------------------------------------------------------------------------------
LINCS, Series 1998-6 14,500 6.689+ 10/18/00 14,500
--------------------------------------------------------------------------------
SMM Trust, 23,000 6.845+ 9/25/00 23,000
Series 1999-H
--------------------------------------------------------------------------------
Total Corporate Notes (Cost--$47,500) ...................... 47,500
--------------------------------------------------------------------------------
Funding Agreements--2.5%
--------------------------------------------------------------------------------
Jackson National 25,000 6.67+ 5/01/01 25,000
Life Insurance Co.
--------------------------------------------------------------------------------
Metropolitan Life 13,000 6.67+ 5/01/01 13,000
Insurance Company
--------------------------------------------------------------------------------
Monumental Life 10,000 6.765+ 8/17/01 10,000
Insurance Company
--------------------------------------------------------------------------------
Principal Life 5,000 6.72+ 5/16/01 5,000
Insurance Company
--------------------------------------------------------------------------------
Total Funding Agreements
(Cost--$53,000) ............................................ 53,000
--------------------------------------------------------------------------------
Medium-Term Notes--14.1%
--------------------------------------------------------------------------------
American Honda 17,750 6.754+ 11/07/00 17,751
Finance Corp.
--------------------------------------------------------------------------------
Associates Corporation 12,000 6.773+ 6/26/01 12,000
of North America
--------------------------------------------------------------------------------
Citigroup 23,500 6.59+ 6/06/01 23,500
--------------------------------------------------------------------------------
Ford Motor 16,000 6.77+ 10/02/00 16,000
Credit Company 25,000 6.61+ 11/24/00 24,997
--------------------------------------------------------------------------------
General Motors 18,000 6.83+ 9/01/00 18,000
Acceptance Corp. 20,000 6.74+ 10/06/00 20,000
8,000 6.99+ 12/01/00 8,002
7,000 6.68 2/27/01 6,998
20,000 6.66+ 7/09/01 19,990
--------------------------------------------------------------------------------
Goldman Sachs 5,000 6.85+ 9/12/01 5,000
Group, Inc.
--------------------------------------------------------------------------------
Household Finance 40,000 6.715+ 7/20/01 39,988
Corp. 9,100 6.94+ 8/24/01 9,110
--------------------------------------------------------------------------------
Morgan Stanley, 15,000 6.90+ 3/13/01 15,012
Dean Witter & Co. 60,000 6.606+ 3/16/01 60,000
--------------------------------------------------------------------------------
Total Medium-Term Notes
(Cost--$296,325) ........................................... 296,348
--------------------------------------------------------------------------------
Promissory Notes--1.9%
--------------------------------------------------------------------------------
Goldman Sachs 40,000 6.63+ 3/21/01 40,000
Group, Inc.
--------------------------------------------------------------------------------
Total Promissory Notes (Cost--$40,000) ..................... 40,000
--------------------------------------------------------------------------------
US Government & Agency Obligations--
Non-Discount Notes--9.3%
--------------------------------------------------------------------------------
Federal Home 25,000 6.843+ 11/09/01 25,000
Loan Banks
--------------------------------------------------------------------------------
Federal Home Loan 10,000 5.05 11/17/00 9,963
Mortgage Corporation 10,000 5.18 11/24/00 9,963
5,000 5.25 1/19/01 4,971
5,000 5.15 1/26/01 4,968
--------------------------------------------------------------------------------
Federal National 12,000 4.89 10/13/00 11,977
Mortgage Association 5,000 5.21 1/26/01 4,970
10,000 5.37 4/05/01 9,922
40,000 6.623+ 9/17/01 39,968
--------------------------------------------------------------------------------
Student Loan 35,000 6.973+ 9/29/00 35,000
Marketing Association 20,000 6.843+ 8/23/01 19,993
--------------------------------------------------------------------------------
US Treasury Notes 5,800 4.50 9/30/00 5,790
5,000 4.625 12/31/00 4,970
8,200 5.00 4/30/01 8,126
--------------------------------------------------------------------------------
Total US Government & Agency
Obligations--Non-Discount Notes
(Cost--$195,950) ........................................... 195,581
--------------------------------------------------------------------------------
Total Investments (Cost--$2,091,767)--99.4% ................ 2,091,408
Other Assets Less Liabilities--0.6% ........................ 12,648
---------
Net Assets--100.0% ......................................... $2,104,056
==========
================================================================================
* 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, 2000.
+ Variable rate notes.
See Notes to Financial Statements.
4
<PAGE>
CBA Money Fund
Statement of Assets and Liabilities as of August 31, 2000
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at value (identified cost--$2,091,766,532*) ............................ $ 2,091,408,075
Cash ................................................................................ 16,752
Receivables:
Interest ......................................................................... $ 14,996,924
Securities sold .................................................................. 14,000 15,010,924
------------
Prepaid registration fees and other assets .......................................... 82,670
---------------
Total assets ........................................................................ 2,106,518,421
---------------
Liabilities:
Payables:
Investment adviser ............................................................... 654,483
Distributor ...................................................................... 513,978
Beneficial interest redeemed ..................................................... 5,582
Dividends to shareholders ........................................................ 43 1,174,086
------------
Accrued expenses and other liabilities .............................................. 1,288,030
---------------
Total liabilities ................................................................... 2,462,116
---------------
Net Assets .......................................................................... $ 2,104,056,305
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized ................................................................... $ 210,441,476
Paid-in capital in excess of par .................................................... 1,893,973,286
Unrealized depreciation on investments--net ......................................... (358,457)
---------------
Net Assets--Equivalent to $1.00 per share based on 2,104,414,763 shares of beneficial
interest outstanding ................................................................ $ 2,104,056,305
===============
</TABLE>
* The aggregate cost of investments at August 31, 2000 for Federal income
tax purposes was $2,091,766,532. As of August 31, 2000, net unrealized
depreciation for Federal income tax purposes amounted to $358,457, of
which $195,559 related to appreciated securities and $554,016 related to
depreciated securities.
See Notes to Financial Statements.
5
<PAGE>
CBA Money Fund
Statement of Operations for the Six Months Ended August 31, 2000
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest and amortization of premium and
discount earned ........................................ $ 71,240,842
Expenses:
Investment advisory fees ............................... $4,643,683
Transfer agent fees .................................... 1,758,067
Distribution fees ...................................... 1,381,266
Accounting services .................................... 137,866
Printing and shareholder reports ....................... 78,726
Registration fees ...................................... 66,859
Custodian fees ......................................... 60,233
Professional fees ...................................... 39,358
Trustees' fees and expenses ............................ 20,804
Pricing expense ........................................ 1,606
Other .................................................. 13,840
----------
Total expenses ......................................... 8,202,308
------------
Investment Income--Net ................................. 63,038,534
Realized Loss on Investments--Net ...................... (2,700)
Change in Unrealized Depreciation on Investments--Net .. 1,119,301
------------
Net Increase in Net Assets Resulting from Operations ... $ 64,155,135
============
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
CBA Money Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: August 31, 2000 February 29, 2000
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Investment income--net ...................................................... $ 63,038,534 $ 115,384,496
Realized loss on investments--net ........................................... (2,700) (16,789)
Change in unrealized depreciation on investments--net ....................... 1,119,301 (770,957)
--------------- ---------------
Net increase in net assets resulting from operations ........................ 64,155,135 114,596,750
--------------- ---------------
Dividends to Shareholders:
Dividends to shareholders from investment income--net ....................... (63,035,834) (115,367,707)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares ............................................ 2,305,517,859 5,672,897,263
Net asset value of shares issued to shareholders in reinvestment
of dividends .............................................................. 62,907,735 115,146,469
--------------- ---------------
2,368,425,594 5,788,043,732
Cost of shares redeemed ..................................................... (2,691,376,799) (5,918,673,300)
--------------- ---------------
Net decrease in net assets derived from beneficial interest transactions .... (322,951,205) (130,629,568)
--------------- ---------------
Net Assets:
Total decrease in net assets ................................................ (321,831,904) (131,400,525)
Beginning of period ......................................................... 2,425,888,209 2,557,288,734
--------------- ---------------
End of period ............................................................... $ 2,104,056,305 $ 2,425,888,209
=============== ===============
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
CBA Money Fund
Financial Highlights
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
The following per share data and ratios For the
have been derived from information provided For the Six For the Year Ended
in the financial statements. Months Ended Year Ended February 28,
August 31, February 29, ---------------------------------------
Increase (Decrease) in Net Asset Value: 2000 2000 1999 1998 1997
------------------------------------------------------------------------------------------------------------------------
<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 ........................ .0284 .0473 .0478 .0497 .0475
Realized and unrealized gain (loss) on
investments--net ............................ .0005 (.0003) (.0002) .0001 --**
----------- ----------- ----------- ----------- -----------
Total from investment operations ................. .0289 .0470 .0476 .0498 .0475
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net ........................ (.0284) (.0473) (.0478) (.0497) (.0475)
Realized gain on investments--net ............. -- -- (.0001) (.0001) --**
----------- ----------- ----------- ----------- -----------
Total dividends and distributions ................ (.0284) (.0473) (.0479) (.0498) (.0475)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Investment Return+ ......................... 5.68%* 5.09% 4.91% 5.10% 4.87%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets:
Expenses, net of reimbursement ................... .73%* .70% .70% .70% .69%
=========== =========== =========== =========== ===========
Expenses ......................................... .73%* .70% .73% .74% .73%
=========== =========== =========== =========== ===========
Investment income and realized gain on
investments--net ................................. 5.61%* 4.68% 4.79% 4.98% 4.71%
=========== =========== =========== =========== ===========
Supplemental Data:
Net assets, end of period (in thousands) ......... $ 2,104,056 $ 2,425,888 $ 2,557,289 $ 2,360,682 $ 2,236,660
=========== =========== =========== =========== ===========
</TABLE>
* Annualized.
** Amount is less than $.0001 per share.
+ The Fund's Investment Adviser voluntarily waived a portion of its
management fee when applicable. Without such waiver, the Fund's
performance would have been lower.
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 conformity with accounting principles generally
accepted in the United States of America, which may require the use of
management accruals and estimates. 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 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. If the counterparty defaults and the fair value of the
collateral declines, liquidation of the collateral by the Fund may be delayed or
limited.
(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.
9
<PAGE>
CBA Money Fund
Notes to Financial Statements (concluded)
Dividends and distributions are declared from the total of net investment income
and net realized gain or loss on investments.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM 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 sold, reinvested and redeemed during the periods
corresponds to the amounts included in the Statements of Changes in Net Assets
for net proceeds from sale of shares, value of shares reinvested and cost of
shares redeemed, respectively, since shares are recorded at $1.00 per share.
10
<PAGE>
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
Roscoe S. Suddarth--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Edward D. Zinbarg--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.
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 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--8/00
[RECYCLE LOGO] Printed on post-consumer recycled paper
