CMA
CMA NEW YORK
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1996
MERRILL LYNCH
BULL LOGO
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government. Statements and
other information herein are as dated and are subject to change.
<PAGE>
CMA New York
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
To Our Shareholders:
For the six-month period ended September 30, 1996, CMA New York
Municipal Money Fund paid shareholders a net annualized yield of
2.85%*. As of September 30, 1996, the Fund's 7-day yield was 3.02%.
The Environment
Although the US stock and bond markets rallied late in the six-month
period ended September 30, 1996, much of the period was marked by
volatility in the capital markets. The US economy demonstrated
surprising resilience during the first half of the year. As a
result, when economic data releases appeared to indicate that the US
economy was expanding at a stronger-than-expected (and potentially
inflationary) rate, investors focused on the increasing possibility
of monetary policy tightening by the Federal Reserve Board. During
these periods, stock prices declined and long-term interest rates
moved higher. However, with inflationary pressures still under
control, the US central bank did not tighten monetary policy at its
September 24 meeting. This development, coupled with several
economic data releases that showed growth was at or below
expectations, helped to assuage investors' concerns about an
overheating economy. Stock and bond prices improved, with stock
market averages reaching historic high levels.
<PAGE>
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
The shifts in perceptions were exemplified by investors' reactions
to the release of recent employment reports. Inflationary concerns
were heightened in early July with the release of a stronger-than-
expected employment report for June. However, more subdued job
growth and decelerating hourly wage gains were subsequently reported
for the month of July. Although the employment report for August
showed that unemployment had dropped to its lowest level since 1989,
these results were generally in line with expectations, and were
received favorably by investors. The greatest boost in investor
confidence occurred in early October with the release of September's
employment report, which showed a slight increase in unemployment.
Investors will continue to monitor economic data releases to
determine the probable direction of the US economy. The outcome of
the upcoming November election will also increasingly influence
investor psychology in the weeks ahead.
Investment Outlook and Strategy
During the six-month period ended September 30, 1996, the New York
State economy finally started to show modest improvement spurred by
the retail and manufacturing sectors. Also, because of continued
record high consumer confidence levels, tourism and its related
industries such as entertainment and dining have recorded strong
gains. Hotel occupancy in New York City is currently at a ten-year
high. Also, the decline in interest rates in late 1995 and early
1996 as well as the aforementioned high consumer confidence levels
spurred existing single-family and multi-family home sales to near-
record levels. New York State's unemployment rate in August dipped
to 6.0% from 6.8% in January.
In July 1996, Standard & Poor's Corporation assigned its A- rating
to New York State's $75.6 billion outstanding general obligation
bonds. A rating upgrade to A was not warranted because of an enacted
fiscal 1997 budget that suffered through a prolonged delay in
passage and that is still structurally imbalanced. However, if New
York State is able to continue to demonstrate financial restraint
within the fiscal year by generating positive general fund operating
results, the outlook would continue to be positive and a rating
upgrade could occur.
<PAGE>
During the six-month period ended September 30, 1996, new issuance
of short-term New York debt totaled approximately $3.9 billion, an
increase of 28% from the $2.8 billion in debt issued in the six-
month period ended March 30, 1996. During the six-month period ended
September 30, 1996, the net assets of CMA New York Municipal Money
Fund ranged between $1.0 billion and $1.1 billion. During the same
period, we maintained the maturity of CMA New York Municipal Money
Fund in the 65-day--80-day range in anticipation of modest New York
fixed-rate issuance as well as the expectation of the Federal
Reserve Board leaving interest rates unchanged. This position
enhanced performance from May through September as fixed-rate notes
outperformed variable rate yields. We will continue to maintain this
extended maturity range in anticipation of lower interest rates in
the months ahead.
We continue to work very closely with our credit department to
maintain the highest quality portfolio possible. Diversification and
credit quality remain paramount to the Fund, and we will continue to
closely monitor the everchanging marketplace.
In Conclusion
We thank you for your support of CMA New York Municipal Money Fund,
and we look forward to serving your investment needs in the future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
<PAGE>
(Edward J. Andrews)
Edward J. Andrews
Vice President and Portfolio Manager
October 24, 1996
Portfolio Abbreviations for
CMA New York Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
TAN Tan Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York-- $ 1,109 Albany, New York, Housing Authority, Private Act Revenue Bonds
99.1% (Historic Bleeker Terrace), VRDN, AMT, 3.60% due 3/01/2015 (a) $ 1,109
1,250 Albany, New York, IDA, IDR, Refunding (Albany Ventures Inc. Project),
VRDN, 4% due 12/29/2010 (a) 1,250
7,000 Amityville, New York (Union Free School District), TAN, UT, 4.50%
due 6/26/1997 (e) 7,020
4,284 Binghamton, New York, BAN, 4.25% due 5/29/1997 (e) 4,300
1,071 Colonie, New York, BAN, UT, 3.875% due 2/14/1997 (e) 1,073
Eagle Tax Exempt Trust, New York, VRDN (a):
27,000 Series 1994-3201, 4% due 4/01/2034 27,000
7,200 Series 1994-C4, 3.95% due 8/01/2003 7,200
20,000 Series 1995-3201, 3.95% due 8/15/2024 20,000
19,000 Eastern Suffolk, New York, Board Cooperative Educational Services
District, RAN, 4.50% due 6/26/1997 19,069
4,610 Elmira Heights, New York (Central School District), BAN, UT, 4%
due 1/16/1997 (e) 4,615
11,000 Erie County, New York, RAN, UT, Series A, 4.25% due 4/17/1997 11,038
7,000 Farmingdale, New York (Union Free School District), TAN, UT, 4.50%
due 6/26/1997 7,028
7,000 Harrison, New York (Central School District), BAN, UT, 4.50%
due 7/18/1997 7,031
6,000 Hicksville, New York (Union Free School District), TAN, UT, 4.25% due
6/26/1997 6,013
12,000 Longwood, New York (Central School District at Middle Island), TAN,
UT, 4.50% due 6/26/1997 12,047
Municipal Assistance Corporation, City of New York, New York:
13,100 CP, Series 2, 3.20% due 10/08/1996 13,100
5,500 CP, Series 2, 3.60% due 11/20/1996 5,500
11,800 CP, Series 2, 3.55% due 12/09/1996 11,800
2,000 Refunding, Series E, 4% due 7/01/1997 2,003
Nassau County, New York:
5,000 BAN, Series A, 3.50% due 11/15/1996 5,002
4,450 BAN, UT, Series C, 4.25% due 3/14/1997 4,460
30,000 RAN, UT, Series B, 4.25% due 4/15/1997 30,082
4,500 Nassau County, New York, IDA, Civic Facilities Revenue Bonds (Cold
Spring Harbor Laboratory Project), VRDN, 3.95% due 7/01/2019 (a) 4,500
2,100 Nassau County, New York, IDA, Research Facilities Revenue Bonds
(Cold Spring Harbor Laboratory Project), VRDN, 3.95% due 7/01/2023 (a) 2,100
New York City, New York, CP:
10,000 3.55% due 10/04/1996 10,000
9,000 3.50% due 10/07/1996 9,000
51,600 3.50% due 10/08/1996 51,600
1,300 3.65% due 10/08/1996 1,300
18,500 3.60% due 10/09/1996 18,500
6,600 3.50% due 11/22/1996 6,600
6,300 3.70% due 2/21/1997 6,300
19,400 3.75% due 2/21/1997 19,400
</TABLE>
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York $ 2,590 New York City, New York, GO, UT, Sub-Series A-9, 6.80%
(continued) due 2/01/1997 $ 2,618
New York City, New York, GO, VRDN, UT (a):
6,500 Sub-Series A-4, 3.90% due 8/01/2022 6,500
5,550 Sub-Series A-4, 3.90% due 8/01/2023 5,550
3,080 Sub-Series A-9, 3.85% due 8/01/2018 3,080
3,700 Sub-Series E-5, 3.90% due 8/01/2016 3,700
13,100 New York City, New York, Housing Development Corporation,
M/F Mortgage Revenue Bonds (Tribecca Towers), VRDN, AMT, Series A,
3.70% due 12/15/2024 (a) (f) 13,100
2,700 New York City, New York, Housing Development Corporation, Mortgage
Revenue Bonds (Columbus Apartments), VRDN, Series A, 3.60%
due 3/15/2025 (a) (f) 2,700
New York City, New York, IDA, Civic Facilities Revenue Bonds,
VRDN (a):
3,250 (Children's Oncology Society/Ronald McDonald House), 3.65% due
5/01/2012 3,250
3,100 (Columbia Grammar School Project), 3.70% due 6/30/2014 3,100
4,500 (National Audubon Society), 3.90% due 12/01/2014 4,500
New York City, New York, IDA, IDR, VRDN, AMT (a):
1,800 (Bowe Industrial Inc. Project), Series K, 3.80% due 11/01/2010 1,800
1,350 (Composite XXV), Series E, 3.80% due 11/01/2010 1,350
60,500 (Japan Airlines Company Ltd. Project), 4% due 11/01/2015 60,500
New York City, New York, Municipal Water Financing Authority,
Water and Sewer System Revenue Bonds:
3,100 CP, 3.45% due 10/04/1996 3,100
3,500 CP, 3.45% due 10/09/1996 3,500
3,900 CP, 3.55% due 10/09/1996 3,900
10,000 CP, 3.70% due 10/11/1996 10,000
5,000 Series A, 7% due 6/15/1997 (b) 5,182
300 VRDN, Series A, 4% due 6/15/2025 (a) (c) 300
58,900 New York City, New York, TAN, Series A, 4.50% due 2/12/1997 59,072
15,000 New York City, New York, Transportation Authority, Special
Obligation, RAN, Series A, 4.25% due 12/12/1996 15,018
New York State, CP, Series S:
20,000 3.25% due 10/04/1996 20,000
11,050 3.55% due 10/18/1996 11,050
5,000 3.60% due 11/12/1996 5,000
New York State Dormitory Authority Revenue Bonds:
8,550 (Memorial Sloan Kettering), CP, Series B, 3.50% due 12/17/1996 8,550
9,300 (Memorial Sloan Kettering), CP, Series C, 3.40% due 10/07/1996 9,300
6,000 Refunding (City University Systems--Third Generation Resources),
Series 2, 4.75% due 7/01/1997 6,024
6,000 Refunding (Memorial Sloan Kettering), CP, 3.55% due 12/09/1996 6,000
New York State Energy Research and Development Authority, Electric
Facilities Revenue Bonds (Long Island Lighting Co.), VRDN, AMT (a):
14,000 Series A, 3.80% due 10/01/2024 14,000
5,000 Series A, 3.75% due 8/01/2025 5,000
18,300 Series B, 3.75% due 11/01/2023 18,300
New York State Energy Research and Development Authority, PCR:
13,325 (Long Island Lighting Co. Project), Series A, 3.25% due 3/01/1997 13,325
1,000 (New York State Electric and Gas), Series B, 3.85% due 10/15/1996 1,000
</TABLE>
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York New York State Environmental Facilities Corporation, PCR, State Water
(continued) Revolving Fund (Pooled Loan), Series C:
$ 695 3.60% due 1/15/1997 $ 695
3,000 3.73% due 7/15/1997 3,000
20,100 New York State Environmental Facilities Corporation, Resource
Recovery Revenue Bonds (OFS Equity Huntington Project), VRDN,
AMT, 4.10% due 11/01/2014 (a) 20,100
6,800 New York State Environmental Facilities Corporation, Solid Waste
Disposal Revenue Bonds (General Electric Co. Project), CP, AMT,
Series A, 3.60% due 10/09/1996 6,800
3,510 New York State Environmental Quality, UT, 5% due 1/15/1997 3,522
20,000 New York State, HFA, Revenue Bonds (East 84th Street), VRDN, AMT,
Series A, 3.80% due 11/01/2028 (a) 20,000
3,800 New York State Local Government Assistance Corporation, VRDN,
Series F, 3.70% due 4/01/2025 (a) 3,800
New York State Medical Care Facilities, Finance Agency Revenue Bonds,
VRDN, Series A (a):
5,700 (Children's Hospital of Buffalo), 3.70% due 11/01/2005 5,700
19,000 (Pooled Loan Equipment Program--II), 3.60% due 11/01/2003 19,000
805 New York State Mortgage Agency, Revenue Refunding Bonds (Homeowner
Mortgage), AMT, Series 54, 3.80% due 4/01/1997 805
New York State Power Authority, Revenue and General Purpose
Bonds, CP:
21,500 3.65% due 11/12/1996 21,500
22,800 3.55% due 11/13/1996 22,800
25,000 3.55% due 11/14/1996 25,000
New York State Power Authority, Revenue and General Purpose Bonds
(Junior Lien):
23,305 3.70% due 3/01/1997 23,305
3,735 3.70% due 3/01/1997 3,735
13,545 3.70% due 3/01/1997 13,545
8,600 New York State Thruway Authority, General Revenue Bonds, VRDN,
3.90% due 1/01/2024 (a) (c) 8,600
North Hempstead, New York, BAN:
16,675 Series B, 4% due 2/27/1997 16,705
8,769 UT, Series A, 4% due 1/30/1997 8,782
3,035 UT, Series B, 3.75% due 2/27/1997 3,034
8,785 Orange County, New York, BAN, UT, 4.25% due 11/15/1996 8,791
5,250 Oswego, New York, BAN, UT, 4.40% due 10/09/1996 5,251
Oyster Bay, New York, UT:
2,250 4.80% due 12/01/1996 2,254
800 Refunding (Public Improvement), 3.75% due 2/15/1997 801
10,000 Patchogue-Medford, New York (Unified Free School District), TAN,
UT, 4.50% due 6/26/1997 10,045
1,200 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Versatile Structure Obligations), VRDN, AMT, Series
1, 4.05% due 8/01/2028 (a) 1,200
9,765 Port Authority of New York and New Jersey, VRDN, AMT, 3.95% due
3/01/2016 (a) (d) 9,765
Rensselaer County, New York, UT:
3,318 BAN, Series A, 4.25% due 6/27/1997 3,325
5,000 TAN, Series B, 4.25% due 2/28/1997 5,010
</TABLE>
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York $ 2,500 Riverhead, New York (Central School District), BAN, UT, 4.375% due
(concluded) 12/06/1996 $ 2,503
20,000 Rochester, New York, BAN, UT, Series I, 4.50% due 10/31/1996 20,012
1,975 Saint Lawrence County, New York, IDA, Civic Facility Revenue Bonds
(Clarkson University Project), VRDN, 4% due 10/01/2005 (a) 1,975
4,000 Schenectady County, New York, IDA, IDR (Super Steel Inc. Project),
VRDN, AMT, Series A, 3.60% due 5/01/2006 (a) 4,000
3,236 Smithtown, New York, BAN, UT, Series B, 4% due 5/02/1997 3,240
28,900 Suffolk County, New York, IDA, IDR (Nissequogue Cogeneration
Partners), VRDN, 3.80% due 12/15/2023 (a) (e) 28,900
15,000 Suffolk County, New York, Water Authority, BAN, VRDN, UT, 3.75% due
2/06/2001 (a) 15,000
11,775 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Community
Development Properties--Larned Project), VRDN, 3.50% due 4/01/2018 (a) 11,775
250 Triborough Bridge and Tunnel Authority, New York (Convention Center
Project), Series E, 6.70% due 1/01/1997 252
15,000 Triborough Bridge and Tunnel Authority, New York, Special Obligation
Revenue Bonds, VRDN, 3.20% due 1/01/2024 (a) (c) 15,000
2,500 Ulster County, New York, BAN, UT, 4.25% due 11/22/1996 2,501
7,000 Valley Stream, New York, Central High School District, TAN, UT,
4.25% due 6/26/1997 (e) 7,017
Puerto Rico-- 17,000 Puerto Rico Commonwealth, Government Development Bank, CP, 3.20% due
1.6% 10/08/1996 17,000
Total Investments (Cost--$1,072,454*)--100.7% 1,072,454
Liabilities in Excess of Other Assets--(0.7%) (7,674)
----------
Net Assets--100.0% $1,064,780
==========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
September 30, 1996.
(b)Prerefunded.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Bank Qualified.
(f)FNMA Collateralized.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1996
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,072,453,840) (Note 1a) $ 1,072,453,840
Cash 43,842
Receivables:
Interest $ 7,546,704
Securities sold 500,000 8,046,704
---------------
Prepaid registration fees and other assets (Note 1d) 55,146
---------------
Total assets 1,080,599,532
---------------
Liabilities:
Payables:
Securities purchased 15,000,000
Investment adviser (Note 2) 423,171
Distributor (Note 2) 263,764
Dividends to shareholders (Note 1e) 403
Beneficial interest redeemed 175 15,687,513
---------------
Accrued expenses and other liabilities 132,212
---------------
Total liabilities 15,819,725
---------------
Net Assets $ 1,064,779,807
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 106,566,733
Paid-in capital in excess of par 959,100,600
Undistributed investment income--net 2,138
Accumulated realized capital losses--net (Note 4) (889,664)
---------------
Net Assets--Equivalent to $1.00 per share based on 1,065,667,333 shares of
beneficial interest outstanding $ 1,064,779,807
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 19,285,757
<PAGE>
Expenses:
Investment advisory fees (Note 2) $ 2,510,878
Distribution fees (Note 2) 682,300
Transfer agent fees (Note 2) 104,633
Registration fees (Note 1d) 60,285
Accounting services (Note 2) 49,186
Custodian fees 33,358
Printing and shareholder reports 26,640
Professional fees 26,622
Pricing fees 5,651
Trustees' fees and expenses 5,272
Other 5,461
---------------
Total expenses 3,510,286
---------------
Investment income--net 15,775,471
---------------
Net Increase in Net Assets Resulting from Operations $ 15,775,471
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: Sept. 30, 1996 March 31, 1996
<S> <C> <C>
Operations:
Investment income--net $ 15,775,471 $ 31,054,963
Realized gain on investments--net -- 2,835
--------------- ---------------
Net increase in net assets resulting from operations 15,775,471 31,057,798
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (15,773,333) (31,054,963)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (15,773,333) (31,054,963)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,789,190,920 3,670,775,973
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 15,773,175 31,055,127
--------------- ---------------
1,804,964,095 3,701,831,100
Cost of shares redeemed (1,872,450,394) (3,489,422,207)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (67,486,299) 212,408,893
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets (67,484,161) 212,411,728
Beginning of period 1,132,263,968 919,852,240
--------------- ---------------
End of period* $ 1,064,779,807 $ 1,132,263,968
=============== ===============
<FN>
*Undistributed investment income--net $ 2,138 $ --
=============== ===============
<PAGE>
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Six
Months Ended For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: Sept. 30, 1996 1996 1995 1994 1993
<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 .01 .03 .03 .02 .02
---------- ---------- ---------- ---------- ----------
Total from investment operations .01 .03 .03 .02 .02
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.01) (.03) (.03) (.02) (.02)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.85%* 3.17% 2.59% 1.79% 2.19%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .63%* .64% .67% .67% .67%
========== ========== ========== ========== ==========
Investment income--net 2.85%* 3.12% 2.59% 1.78% 2.16%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $1,064,780 $1,132,264 $ 919,852 $ 772,760 $ 665,970
========== ========== ========== ========== ==========
<FN>
*Annualized.
See Notes to Financial Statements.
</TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
<PAGE>
1. Significant Accounting Policies:
CMA New York Municipal Money Fund (the "Fund") is part of CMA Multi-
State Municipal Series Trust (the "Trust"). The Fund is registered
under the Investment Company Act of 1940 as a non-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 following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax withheld) in additional fund shares at net asset
value. Dividends are declared from the total of net investment
income, excluding discounts earned other than original issue
discounts. Net realized capital gains, if any, are normally
distributed annually after deducting prior years' loss carryforward.
The Fund may distribute capital gains more frequently than annually
in order to maintain the Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM" or "Adviser"). 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.
<PAGE>
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.
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the
annual rate of 0.125% of average daily net assets of the Fund. The
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 distribution fee is not compensation for the
administrative and operational services rendered to the Fund by
MLPF&S in processing share orders and administering shareholder
accounts.
CMA NEW YORK MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLPF&S, MLFDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
4. Capital Loss Carryforward:
At March 31, 1996, the Fund had a net capital loss carryforward of
approximately $890,000, of which $87,000 expires in 1998, $203,000
expires in 2001, $293,000 expires in 2002, $305,000 expires in 2003
and $2,000 expires in 2004. This amount will be available to offset
like amounts of any future taxable gains.
<PAGE>
CMA NEW YORK MUNICIPAL MONEY FUND
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
