CMA
CMA CALIFORNIA
MUNICIPAL MONEY FUND
Annual Report
March 31, 1994
Merrill Lynch BULL LOGO
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
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].
<PAGE>
This report is not authorized for use as an offer
of sale or a solicitation of an offer to buy shares
of the Fund unless accompanied or preceded by
the Fund's current prospectus. Past performance
results shown in this report should not be con-
sidered 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.
CMA California
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1994, CMA California Municipal Money
Fund paid shareholders a net annualized yield of 1.93%*. As of
March 31, 1994, the Fund's 7-day yield was 1.80%.
The Environment
Inflationary expectations changed sharply during the March
quarter. Following better-than-expected economic results, Federal
Reserve Board Chairman Alan Greenspan indicated in Congressional
testimony in January that continued strong expansion of the
economy would lead the central bank to tighten monetary policy in
an effort to control inflation. On February 4, 1994, the central
bank broke with tradition and publicly announced a modest 25
basis point (0.25%) increase in short-term interest rates. At the
March 22 meeting of the Federal Open Market Committee, the
Federal Reserve Board again raised the Federal Funds rate by 25
basis points, and also announced the increase.
<PAGE>
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second increase in the Federal Funds rate was less of a surprise,
investors remained concerned that interest rates would trend
upward sharply. As a result, stock and bond prices continued to
decline through the end of March. The volatility in the US
capital markets was mirrored in international markets. Political
and economic developments, along with concerns of heightened
global inflationary pressures, led to a sell-off in most capital
markets, especially the emerging markets that had appreciated
strongly in 1993.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investors will continue to gauge the pace of
the economic expansion and watch for signs of an overheating
economy. At this time, there is little evidence that the rate of
inflation will increase rapidly. Therefore, although the secular
long-term trend toward lower interest rates may be over, it is
not yet certain whether the pace of economic activity will
accelerate to the point where significant Federal Reserve Board
tightening will be necessary to contain inflation.
Investment Outlook and Strategy
The State of California continues to be plagued with a recession
that, since 1990, has cost it approximately 868,000 jobs, or 7%
of its work force. In addition, the current year's State budget
remains strained by expenditure demand that exceeds original
projections and revenues that lag budget assumptions. Compounding
the effects of the recession and a reduction in realized revenues
was the earthquake in January. Although the US Government has
indicated that it intends to approve approximately $9.5 billion
in aid to the State for damages incurred, the remainder of
damages would be the State's responsibility. Governor Wilson has
indicated that he would like to issue bonds to fund these repairs
in lieu of the institution of a temporary increase in the State's
sales tax.
<PAGE>
The 1994-1995 fiscal year will represent the fourth consecutive
year that California will face a very difficult budget
environment, compounded by election year politics. The challenge
facing State leaders is addressing an accumulated deficit that
ranges from $2.8 billion to $4.5 billion, based on various
estimates. The Governor's budget presented on January 7, 1994
projected $41.3 billion in general fund revenue. Included in this
projection were some revenues that presently appear uncertain,
such as $2.0 billion in Federal immigration aid and $600.0
million in receipts that are dependent upon a favorable US
Supreme Court decision this term. Failure of one or both of these
revenue sources to be realized will further inflate the State's
accumulated deficit.
During the period, the State issued $3.2 billion in Revenue
Anticipation Warrants (RAWs) with maturities of July 26, 1994 and
December 23, 1994 to fund part of the State's 18-month deficit
elimination program initiated in July of 1993. Total California
issuance for 1993 totaled $17.3 billion, a decrease from 1992
issuance of $20.2 billion. Total short-term issuance for the
first quarter of 1994, including RAWs, totaled $3.4 billion.
At the beginning of the period under review, we maintained an
aggressive average portfolio maturity in the 80-day range in
response to the steep yield curve environment. In January, we
reduced the Fund's average portfolio maturity to the 60-day range
since the Federal Reserve Board gave increasingly strong
indications that a tightening of monetary policy was imminent.
Later in January, the State of California announced its upcoming
RAWs issuance and, in view of this supply, we further reduced our
average portfolio maturity. In February and March we continued to
reduce our average maturity to end the quarter in the mid 40-day
range. In April, we anticipate that we will see traditional
redemptions associated with the payment of Federal taxes and will
continue to maintain an average portfolio maturity in this range.
In the months ahead, we will continue to monitor the California
budget debate and its potential impact on the Fund.
We thank you for your continued support of CMA California
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 and Portfolio Manager
April 26, 1994
<PAGE>
Portfolio Abbreviations for CMA California Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
DATES Daily Adjustable Tax-Exempt Securities
DDN Daily Demand Notes
GO General Obligation Bonds
HFA Housing Finance Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAW Revenue Anticipation Warrants
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
CMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California-- $15,900 Anaheim, California, TRAN, 3.25% due 7/29/1994 $ 15,920
99.7% 11,200 Big Bear Lake, California, Industrial Revenue Bonds (Southwest Gas
Corporation), VRDN, AMT, Series A, 2.35% due 12/01/2028 (a) 11,200
California Floating Rate Trust Certificate, VRDN, Series 1992 (a):
20,000 3% due 10/02/1998 20,000
10,000 2.40% due 9/01/2006 10,000
2,000 California Health Facilities Financing Authority, Insured Hospital Bonds
(Children's Hospital), VRDN, 2% due 11/01/2021 (a) 2,000
California Health Facilities Financing Authority Revenue Bonds (Catholic
Health Care), VRDN (a):
5,000 Series A, 2.05% due 7/01/2009 5,000
2,700 Series A, 2.05% due 7/01/2016 2,700
2,500 Series B, 2.05% due 7/01/2016 2,500
15,000 Series C, 2.05% due 7/01/2020 15,000
California Health Facilities Financing Authority Revenue Bonds, VRDN (a):
21,045 (Huntington Memorial Hospital), 2.25% due 11/01/2010 21,045
2,800 (Pooled Loan Program), 2.20% due 9/01/2020 2,800
5,200 (Pooled Loan Program), 1985 Series B, 2.15% due 5/01/1995 5,200
1,000 (Pooled Loan Program), Series A, 2.20% due 6/01/2007 1,000
4,100 (Scripps Memorial Hospital), Series B, 2.15% due 12/01/2015 (a) 4,100
17,500 California Health Facilities Financing Authority, Revenue Refunding Bonds
(Memorial Health Services), VRDN, 2.25% due 10/01/2024 (a) 17,500
California HFA, M/F Revenue Refunding Bonds, VRDN (a):
5,400 (Hidden Hills Series C), 2.20% due 8/01/2013 5,400
<PAGE> 4,830 (Oakbrook Ridge Series A), 2.20% due 8/01/2013 4,830
1,100 California Pollution Control Finance Authority, PCR, Refunding
(Shell Oil Company Project), DDN, 2.75% due 10/01/2007 (a) 1,100
California Pollution Control Finance Authority, Resource Recovery
Revenue Bonds, AMT (a):
1,900 (Honey Lake Power Project), DDN, 3% due 9/01/2018 1,900
2,400 (Sanger Energy Project), VRDN, Series A, 2.25% due 9/01/2020 2,400
California Pollution Control Finance Authority, Resource Recovery Revenue
Refunding Bonds, DDN, AMT (a):
9,200 (Delano Project), 3.05% due 8/01/2019 9,200
3,600 (Ultra Power Malaga), Series B, 3.10% due 4/01/2017 3,600
5,100 (Ultra Power Rocklin Project), Series A, 3.10% due 4/01/2017 5,100
2,700 (Ultra Power Rocklin Project), Series A, 3.10% due 6/01/2017 2,700
3,800 (Ultra Power Rocklin Project), Series B, 3.10% due 6/01/2017 3,800
</TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California California Pollution Control Finance Authority Revenue Bonds (Southern
(continued) California Edison):
$ 12,000 CP, Series A, 2.55% due 5/06/1994 $ 12,000
3,000 CP, Series D, 2.55% due 4/22/1994 3,000
9,000 VRDN, Series C, 2.70% due 2/28/2008 (a) 9,000
California Pollution Control Finance Authority, Revenue Refunding Bonds,
CP (Pacific Gas and Electric):
13,100 AMT, Series B, 2.65% due 4/27/1994 13,100
31,500 AMT, Series B, 2.65% due 4/28/1994 31,500
13,800 Series C, 2.15% due 4/08/1994 13,800
3,100 Series C, 2.55% due 4/22/1994 3,100
15,000 Series E, 2.55% due 4/25/1994 15,000
7,300 Series E, 2.30% due 5/16/1994 7,303
11,000 Series F, 2.55% due 4/21/1994 11,000
11,000 Series F, 2.55% due 4/22/1994 11,000
11,000 Series F, 2.55% due 4/25/1994 11,000
8,000 Series F, 2.55% due 4/28/1994 8,000
California Pollution Control Finance Authority, Solid Waste Disposal Revenue
Bonds (Colmac Energy Project), VRDN, AMT (a):
15,500 Series A, 2.25% due 12/01/2016 15,500
10,000 Series C, 2.25% due 12/01/2016 10,000
25,000 California Public Capital Improvements Finance Authority Revenue Bonds
(Pooled Project), Series D, 2.75% due 6/15/1994 25,000
30,800 California State Floating Rate Notes, VRDN, 2.39% due 6/28/1994 (a) 30,800
10,000 California State, GO, 4.375% due 10/01/1994 10,080
<PAGE> 68,590 California State, RAW, Series B, 3.50% due 7/26/1994 68,722
California Statewide Community Development Authority Revenue Bonds:
1,700 (Saint Joseph Health System), COP, 3.25% due 12/01/2018 1,700
20,000 Series A, 3.25% due 6/30/1994 20,023
15,500 California Statewide Community Development Authority, Revenue Reserve
Bonds, Series A, 3.20% due 7/01/1994 15,502
Chula Vista, California, IDR, CP (San Diego Electric and Gas), AMT:
30,000 Series D, 2.50% due 4/08/1994 30,000
5,000 Series E, 2.55% due 4/22/1994 5,000
9,700 Contra Costa, California, Transportation Authority, Sales Tax Revenue Bonds,
VRDN, Series A, 2.20% due 3/01/2009 (a) 9,700
4,500 Contra Costa County, California, M/F Revenue Refunding Bonds (Delta Square
Project), VRDN, Series A, 2.20% due 8/01/2007 (a) 4,500
Eagle Tax Exempt Trust, California, VRDN (a):
22,800 Series 1994-C6, 2.39% due 8/01/2017 22,800
14,800 Series 1994-C7, 2.39% due 8/01/2023 14,800
6,400 Eastern Municipal Water District, California, Water and Sewer Revenue Bonds,
VRDN, COP, Series B, 2.15% due 7/01/2020 (a) 6,400
First Nationwide Bank, California, Grantor Trust 1991-1, VRDN (a):
2,000 City of Concord, M/F Mortgage Revenue Bonds (Crossroads Apartments),
Class E, 2.30% due 8/01/1996 2,000
2,100 City of Fontana, M/F Revenue Bonds (Oakrest Apartments), Class G,
2.30% due 8/01/1996 2,100
</TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California $16,500 First Nationwide Bank Grantor Trust, City of Camarillo, California, Heritage
(continued) Park, 1991-1, VRDN, Class P, 2.45% due 8/01/1996 (a) $ 16,500
8,400 First Nationwide Bank Grantor Trust, City of Pittsburgh, California, Fountain
Plaza, 1991-1, VRDN, Class L, 2.30% due 7/01/1996 (a) 8,400
7,160 First Nationwide Bank Grantor Trust, City of Pleasanton, California, Valley
Plaza, 1991-1, VRDN, Class I, 2.30% due 8/01/1996 (a) 7,160
10,500 Fontana, California, M/F Housing Revenue Bonds (Springtime Apartments
Project), VRDN, AMT, Series A, 2.20% due 12/01/2016 (a) 10,500
4,000 Foothill East Transportation Corridor Agency Revenue Bonds (California Toll
Road), VRDN, 2.10% due 7/01/2023 (a) 4,000
7,500 Hemet, California, M/F Housing Revenue Bonds (Pacific Senior Estates), VRDN,
Series A, 2.10% due 7/01/2007 (a) 7,500
5,300 Irvine, California, Apartment Development Revenue Bonds (San Rafael
Apartments Project), DDN, AMT, 3.05% due 4/01/2022 (a) 5,300
18,600 Irvine, California, M/F Housing Revenue Bonds, VRDN, Series 1983 A, 2.10%
due 12/01/1995 (a) 18,600
3,000 Irvine Ranch, California, Water District Consolidated Bonds, DATES, DDN,
Series B, 2.05% due 6/01/2015 (a) 3,000
1,200 Irvine Ranch, California, Water District Consolidated Refunding Bonds, DDN,
Series A, 3.05% due 5/01/2009 (a) 1,200
Irvine Ranch, California, Water District, DDN, Series C (a):
3,100 2.80% due 10/01/2000 3,100
600 2.80% due 10/01/2005 600
1,800 Kern County, California, Revenue Bonds (Kern Public Facilities Project), VRDN,
Series A, 2.20% due 8/01/2006 (a) 1,800
Long Beach, California, Harbor Revenue Bonds, AMT, CP:
15,000 2.40% due 4/15/1994 15,000
6,200 2.55% due 5/18/1994 6,200
8,700 Los Angeles, California, M/F Housing Revenue Bonds (Beverly Park Apartments
Project), VRDN, AMT, Series A, 2% due 8/01/2018 (a) 8,700
73,900 Los Angeles, California, Unified School District, TRAN, 3.25% due 7/15/1994 74,018
Los Angeles, California, Wastewater Systems Revenue Bonds:
6,700 CP, 2.60% due 4/18/1994 6,700
15,250 VRDN, Series P, 2.55% due 6/21/2003 (a) 15,250
16,200 Los Angeles County, California, Metropolitan Transportation Authority, Sales
Tax Revenue Refunding Bonds, VRDN, Series A, 2.20% due 7/01/2020 (a) 16,200
Los Angeles County, California, TRAN, CP, Series B:
8,000 2.60% due 4/07/1994 8,000
5,000 2.50% due 4/08/1994 5,000
5,250 2.55% due 5/02/1994 5,250
4,400 2.55% due 5/06/1994 4,400
Los Angeles County, California, Transportation Commission Sales Tax Revenue
Bonds, CP, Series A:
16,700 2.55% due 4/26/1994 16,700
16,000 2.75% due 4/29/1994 16,000
8,500 Marin County, California, TRAN, Series A, 3% due 7/06/1994 8,503
35,500 Oakland, California, TRAN, 3.50% due 8/15/1994 35,571
3,555 Orange County, California, Apartment Development Revenue Bonds (Irvine
Co.), VRDN, Issue V, 2.45% due 4/18/1994 (a) 3,555
</TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California $ 9,000 Orange County, California, Sanitation Districts, COP, Revenue Bonds, VRDN,
(concluded) Series A, 3% due 8/01/2015 (a) $ 9,000
30,195 Orange County, California, Sanitation Districts, COP, Revenue Refunding
Bonds, VRDN, 2.15% due 8/01/2013 (a) 30,195
28,750 Orange County, California, TRAN, Series A, 3% due 6/30/1994 28,765
8,800 Orange County, California, Unit Priced Apartment Development Revenue
Bonds (Irvine Company Project), CP, 2.45% due 4/18/1994 8,800
5,000 Oxnard, California, Union High School District, TRAN, 3.25% due 7/26/1994 5,005
12,000 Pasadena, California, TRAN, 3.25% due 9/12/1994 12,010
2,900 Redlands, California, M/F Housing Revenue Bonds (Orange Village Apartments
Project), VRDN, AMT, Series A, 2.20% due 8/01/2018 (a) 2,900
2,850 Redlands, California, M/F Housing Revenue Refunding Bonds (Parkview Terrace
Project), VRDN, Series A, 2.15% due 2/01/2016 (a) 2,850
Riverside County, California, TRAN:
9,600 CP, 2.55% due 4/28/1994 9,600
2,700 Series A, 3% due 6/30/1994 2,700
3,200 Roseville, California, Finance Authority, Hospital Lease Revenue Bonds
(Roseville Hospital), VRDN, Series A, 2.15% due 10/01/2014 (a) 3,200
5,000 Sacramento County, California, M/F Housing Revenue Bonds, VRDN, Series C,
2.35% due 4/15/2007 (a) 5,000
16,750 Sacramento County, California, Municipal Utility District, CP, 2.55%
due 4/22/1994 16,750
6,110 San Bernardino County, California, Residential Mortgage Revenue Refunding
Bonds (Ramona Garden Project), VRDN, Series A, 2.35% due 2/01/2017 (a) 6,110
4,500 San Diego, California, M/F Housing Revenue Refunding Bonds (Union Town
Center Apartments), VRDN, 1.90% due 10/01/2015 (a) 4,500
34,200 San Diego County, California, TRAN, 3.25% due 7/29/1994 34,264
63,300 San Francisco, California, City and County, TRAN, 3.25% due 7/15/1994 63,385
1,000 Santa Clara County, California, TRAN, 3.25% due 7/29/1994 1,002
5,325 Santa Rosa, California, M/F Housing Revenue Bonds (Oak Creek Apartments
Project), VRDN, AMT, Series A, 2.20% due 6/01/2018 (a) 5,325
3,275 Simi Valley, California, Community Redevelopment Agency, M/F Housing
Revenue Bonds (Ashley Manor Project), VRDN, AMT, Series A, 2.20%
due 10/01/2017 (a) 3,275
4,000 Solano County, California, TRAN, 3.25% due 11/01/1994 4,011
3,100 Stanislaus County, California, TRAN, 3.50% due 8/02/1994 3,104
7,900 Yolo County, California, TRAN, 3.25% due 7/06/1994 7,909
Puerto Rico--0.9% 10,700 Commonwealth of Puerto Rico, TRAN, Series A, 3% due 7/29/1994 10,709
Total Investments (Cost--$1,232,501*)--100.6% 1,232,501
Liabilities in Excess of Other Assets--(0.6%) (7,341)
----------
Net Assets--100.0% $1,225,160
==========
<FN>
(a)The interest rate is subject to change periodically based on certain indexes.
The interest rates shown are the interest rates in effect at March 31, 1994.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1994
<S> <C>
Assets:
Investments, at value (identified cost--$1,232,500,737)(Note 1a) $ 1,232,500,737
Cash 59,666
Interest receivable 11,170,219
Prepaid registration fees and other assets (Note 1d) 18,288
---------------
Total assets 1,243,748,910
---------------
Liabilities:
Payables:
Securities purchased $ 17,789,184
Investment adviser (Note 2) 463,951
Distributor (Note 2) 209,731
Beneficial interest redeemed 339 18,463,205
---------------
Accrued expenses and other liabilities 125,518
---------------
Total liabilities 18,588,723
---------------
Net Assets $ 1,225,160,187
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 122,564,727
Paid-in capital in excess of par 1,103,082,546
Accumulated realized capital loss--net(Note 4) (487,086)
---------------
Net Assets--Equivalent to $1.00 per share based on 1,225,647,273 shares of
beneficial interest outstanding $ 1,225,160,187
===============
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
<CAPTION>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1994
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 27,655,714
Expenses:
Investment advisory fees (Note 2) $ 4,979,676
Distribution fees (Note 2) 1,364,634
Transfer agent fees (Note 2) 110,324
Registration fees (Note 1d) 82,748
Custodian fees 71,328
Printing and shareholder reports 65,714
Accounting services (Note 2) 52,406
Professional fees 38,434
Trustees' fees and expenses 12,020
Pricing fees 10,017
Other 9,080
---------------
Total expenses 6,796,381
---------------
Investment income--net 20,859,333
Realized Loss on Investments--Net (Note 1c) (467,649)
---------------
Net Increase in Net Assets Resulting from Operations $ 20,391,684
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS For the Year Ended March 31,
1994 1993
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net $ 20,859,333 $ 22,575,002
Realized gain (loss) on investments--net (467,649) 196,908
--------------- ---------------
Net increase in net assets resulting from operations 20,391,684 22,771,910
--------------- ---------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (20,855,158) (22,563,862)
Realized gain on investments--net (100,764) (21,953)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (20,955,922) (22,585,815)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 3,766,542,841 3,390,248,737
Net asset value of shares issued to shareholders in reinvestment of
dividends and distributions (Note 1e) 20,933,840 22,585,779
--------------- ---------------
3,787,476,681 3,412,834,516
Cost of shares redeemed (3,576,552,548) (3,431,643,338)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest
transactions 210,924,133 (18,808,822)
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets 210,359,895 (18,622,727)
Beginning of year 1,014,800,292 1,033,423,019
--------------- ---------------
End of year $ 1,225,160,187 $ 1,014,800,292
=============== ===============
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
<CAPTION>
FINANCIAL HIGHLIGHTS
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- --------- ---------- ---------- ----------
Investment income--net .02 .02 .03 .05 .05
---------- ---------- ---------- ---------- ----------
Total from investment operations .02 .02 .03 .05 .05
---------- ---------- ---------- ---------- ----------
Less dividends:
Investment income--net (.02) (.02) (.03) (.05) (.05)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 1.93% 2.25% 3.48% 4.96% 5.59%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .50% .51% .51% .50% .52%
========== ========== ========== ========== ==========
Expenses .62% .63% .63% .62% .65%
========== ========== ========== ========== ==========
Investment income--net 1.91% 2.22% 3.42% 4.83% 5.44%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $1,225,160 $1,014,800 $1,033,423 $1,163,288 $1,047,340
========== ========== ========== ========== ==========
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA California 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 investment management company. 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. 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 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.
(f) Reclassifications--Undistributed investment income--net,
in the amount of $71,914 has been reclassified to accumulated
realized capital losses--net.
<PAGE>
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
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 Fund's average daily net assets not
exceeding $500 million; 0.425% of the average daily net assets in
excess of $500 million but not exceeding $1 billion; and 0.375%
of the average daily net assets in excess of $1 billion.
The most restrictive annual expense limitation requires that the
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed 2.5% of the Fund's
first $30 million of average daily net assets, 2.0% of the Fund's
next $70 million of average daily net assets, and 1.5% of the
average daily net assets in excess thereof. No fee payment
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
will be made to the Investment Adviser during any year which will
cause such expenses to exceed the pro rata expense limitation at
the time of such payment.
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 the 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.
<PAGE>
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, MLIM, MLPF&S, FDS, 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, 1994, the Fund had a net capital loss carryforward
of approximately $472,000, all of which expires in 2002 and will
be available to offset a like amount of any future taxable gains.
<AUDIT-REPORT>
CMA CALIFORNIA MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA California Municipal Money Fund of
CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of CMA
California Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1994, the related statements of
operations for the year then ended and changes in net assets
for each of the years in the two-year period then ended, and
the financial highlights for each of the years in the five-year
period then ended. These financial statements and the financial
highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned at March 31, 1994 by correspondence with the
custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, such financial statements and financial
highlights present fairly, in all material respects, the
financial position of CMA California Municipal Money Fund of CMA
Multi-State Municipal Series Trust as of March 31, 1994, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
Deloitte & Touche
Princeton, New Jersey
April 29, 1994
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION
All of the net investment income distributions paid daily by CMA
California Municipal Money Fund of CMA Multi-State Municipal
Series Trust during the taxable year ended March 31, 1994 qualify
as tax-exempt interest dividends for Federal income tax purposes.
Additionally, the Fund distributed short-term capital gains of
$.000066 per share and long-term capital gains of $.000002 per
share to shareholders of record on December 31, 1993.
Please retain this information for your records.