CMA
CMA California
Municipal Money Fund
Semi-Annual Report
September 30, 1994
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.
CMA California
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
<PAGE>
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1994, CMA California
Municipal Money Fund paid shareholders a net annualized yield of
2.27%*. As of September 30, 1994, the Fund's 7-day yield was 2.79%.
The Environment
Concerns of increasing inflationary pressures continued to prompt
volatility in the US stock and bond markets during the July--
September period. In addition, the weakness of the US dollar in
foreign exchange markets caused intermittent stock and bond market
declines during the period. While the immediate concerns regarding
the US dollar had diminished by late July, the possibility of
continued tightening by the Federal Reserve Board persisted for most
of the period. However, a lower-than-expected rate of growth
reported for the US economy during the second calendar quarter
allayed inflationary concerns to some degree, despite the fifth
increase this year in short-term interest rates made by the central
bank in mid-August. Inflationary expectations surfaced again with
the announcement of significant upward revision in industrial
production and capacity utilization for the May--July period. When
the central bank did not raise short-term interest rates at the late
September Federal Open Market Committee meeting, financial markets
rallied on the expectation that the US economy was not overheating
and therefore significant further monetary policy tightening would
not be necessary.
Despite the stronger-than-expected industrial production results,
other economic data suggest that while the economic recovery is
continuing, it is losing some momentum. Consumer spending is
increasing, but at a relatively slow pace, and existing home sales
may have peaked. Inflation remains subdued at the retail level. In
the industrial sector, the sharp increase in manufacturing
production in August was largely the result of a strong increase in
motor vehicle assemblies, which may level off in the weeks ahead. On
balance, it appears that the growth in US industry is progressing at
a steady, modest rate.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
<PAGE>
Despite evidence of a moderating trend in the US economy, Chairman
Greenspan indicated in his July Humphrey-Hawkins testimony that the
central bank would prefer to err on the side of too much monetary
tightening rather than too little. In the weeks ahead, investors
will continue to assess economic data and inflationary trends in
order to gauge whether further increases in short-term interest
rates are imminent. Continued indications of moderate and
sustainable levels of economic growth would be positive for the US
capital markets.
Investment Outlook and Strategy
During the six-month period ended September 30, 1994, the US economy
continued to surprise the marketplace with its resiliency.
Manufacturing provided a strong catalyst for growth, and continued
strength in housing and automobile sales provided the impetus for
the Federal Reserve Board to continue the restrictive monetary
policy it initiated in February. This was accomplished by raising
the Federal Funds rate in April by 25 basis points (0.25%) to 3.75%.
More aggressive increases of 50 basis points followed in May and
August, pushing the Federal Funds rate to its current level of
4.75%. In addition, the Federal Reserve Board raised the discount
rate by 50 basis points in both May and August. The yield on the one-
year US Treasury bill rose approximately 155 basis points to 5.95%
by September 30, 1994.
Yields on short-term municipal securities were influenced by the
direction of interest rates in the US Government securities market,
although the rise in yields was not as dramatic as the rise in
interest rates. This can be attributed to the strong demand for
municipal securities by individuals, corporations and mutual funds.
In addition, an improving economy provided increased revenues to
many of the largest states, which then translated into a reduced
need for short-term borrowing and consequently reduced supply in the
marketplace. For example, total short-term issuance for the first
nine months of 1994 totaled $36.2 billion as compared to $42.8
billion for the corresponding period of 1993. During the same
period, assets of tax-exempt money funds rose from $100.9 billion to
$112.6 billion. As a result, yields on short-term tax-exempt notes
rose from the 3.00% range at the onset of the period to the 4.00%
range by the end of September, an increase of approximately 100
basis points as compared to an increase of 155 basis points in the
yield of the one-year US Treasury bill.
<PAGE>
The State of California and its municipalities accounted for $16.3
billion in short-term issuance, almost 50% of total short-term
issuance in the six-month period ended September 30, 1994,
traditionally the heaviest period of the year in terms of issuance.
A large portion of this issuance was composed of State of California
general obligation bonds. In July, the State issued $3.0 billion in
Revenue Anticipation Notes with a June 1994 maturity and $4.0
billion in Revenue Anticipation Warrants (RAWs) with an April 1996
maturity. The State issued RAWs to partially fund the State's cash
flow requirement over the subsequent 22 months. As expected, the
major rating agencies, Moody's Investors Service, Inc., Standard &
Poor's Corp. and Fitch Investors Services, downgraded the State's
long-term debt to A1, A and A, respectively, as a result of this
financing. The final quarter of the year is an important one for the
State as predetermined fiscal cuts will automatically kick in if
specific revenue goals are not attained as mandated by the State's
new budget.
In July, we began to extend the average portfolio maturity of CMA
California Municipal Money Fund, capitalizing on the availability
and diversity offered by the many California municipalities entering
the market. During this period we extended the average portfolio
maturity to the mid 80-day range. In August and September, we
gradually decreased the average portfolio maturity as economic
statistics pointed to a continued strong US economy and the Federal
Reserve Board indicated that it was intent on continuing its
restrictive monetary policy. Although we anticipate that there will
be little issuance by the State and its municipalities in the final
quarter of the year, we intend to maintain an average portfolio
maturity around our current mid 50-day range until a clearer picture
emerges of future Federal Reserve Board policy.
In Conclusion
We thank you for your 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
October 27, 1994
<PAGE>
Portfolio Abbreviations for CMA California Municipal Money Fund
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
CP Commercial Paper
DATES Daily Adjustable Tax-Exempt Securities
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
TRAN Tax Revenue Anticipation Notes
UPDATES Unit Priced Demand Adjustable
Tax-Exempt Securities
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California-- $ 6,000 Alameda County, California, IDA, IDR, Refunding (Hoover University Inc.
99.7% Project), VRDN, 3.65% due 6/01/2004 (a) $ 6,000
6,250 Anaheim, California, Electric Revenue Anticipation Notes, CP,
3% due 11/10/1994 6,250
2,500 Berkeley, California, TRAN, 4.25% due 7/11/1995 2,505
11,200 Big Bear Lake, California, Industrial Development Revenue Bonds (Southwest
Gas Corporation Project), VRDN, AMT, Series A, 3.55% due 12/01/2028 (a) 11,200
California Health Facilities Financing Authority Revenue Bonds, VRDN (a):
5,000 (Catholic Health Care), Series A, 3.50% due 7/01/2009 5,000
6,600 (Catholic Health Care), Series B, 3.50% due 7/01/2016 6,600
21,045 (Huntington Memorial Hospital), 3.55% due 11/01/2010 21,045
2,000 (Insured Hospital-Children's Hospital), 3.50% due 11/01/2021 2,000
3,400 (Pooled Loan Program), Series 85A, 3.50% due 5/01/1995 3,400
5,200 (Pooled Loan Program), Series 85B, 3.50% due 5/01/1995 5,200
1,000 (Pooled Loan Program), Series 1987 A, 3.55% due 6/01/2007 1,000
2,700 (Pooled Loan Program), Series 1990A, 3.55% due 9/01/2020 2,700
765 (Saint Joseph Health System), Series A, 3.50% due 7/01/2013 765
<PAGE> 1,000 (Saint Joseph Health System), Series B, 3.50% due 7/01/2009 1,000
4,100 (Scripps Memorial Hospital), Series B, 3.50% due 12/01/2015 4,100
4,600 (Sutter Health), Series B, 3.75% due 3/01/2020 4,600
California Pollution Control Financing Authority, PCR, Refunding (Pacific
Electric & Gas), CP:
11,100 Series B, 2.95% due 10/26/1994 11,100
13,100 Series B, AMT, 3.20% due 10/20/1994 13,100
16,500 Series B, AMT, 3.20% due 10/24/1994 16,500
15,000 Series B, AMT, 3.20% due 10/25/1994 15,000
17,000 Series B, AMT, 3.10% due 11/17/1994 17,000
16,400 Series C, 3.10% due 10/12/1994 16,400
20,000 Series C, 2.95% due 11/10/1994 20,000
3,200 Series E, 3.10% due 10/13/1994 3,200
7,200 Series E, 3.50% due 10/28/1994 7,200
11,000 Series F, 3.05% due 10/17/1994 11,000
26,500 Series F, 3.05% due 10/18/1994 26,500
21,200 Series F, 2.95% due 10/24/1994 21,200
California Pollution Control Financing Authority, PCR (Southern
California Edison):
12,000 CP, Series A, 3.20% due 10/17/1994 12,000
7,300 CP, Series A, 3% due 11/07/1994 7,300
3,000 CP, Series D, 3.05% due 10/13/1994 3,000
9,100 VRDN, Series A, 3.60% due 2/28/2008 (a) 9,100
5,100 VRDN, Series B, 3.60% due 2/28/2008 (a) 5,100
4,100 VRDN, Series C, 3.60% due 2/28/2008 (a) 4,100
13,900 VRDN, Series D, 3.60% due 2/28/2008 (a) 13,900
California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds, VRDN, AMT (a):
2,900 (Delano Project), 3.75% due 8/01/2019 2,900
2,400 (Sanger Project), Series A, 3.55% due 9/01/2020 2,400
California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds (Colmac Energy Project), VRDN, AMT (a):
15,500 Series A, 3.55% due 12/01/2016 15,500
10,000 Series C, 3.55% due 12/01/2016 10,000
25,000 California Public Capital Improvements Financing Authority Revenue Bonds
(Pooled Loan Program), Series D, 3.45% due 12/15/1994 25,000
5,052 California State Department of Water Revenue Bonds, CP, 3.05% due 10/24/1994 5,052
10,000 California State Various Purpose, GO, 4.375% due 10/01/1994 10,000
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California California Statewide Community Development Authority, Revenue Refunding
(continued) Bonds, VRDN, COP (a):
$ 3,500 (House Ear Institute), 3.80% due 12/01/2018 $ 3,500
3,200 (Saint Joseph Health System), 3.75% due 7/01/2008 3,200
Chula Vista, California, IDR (San Diego Electric & Gas), CP, AMT:
31,000 Series D, 3.20% due 10/07/1994 31,000
15,000 Series E, 3.35% due 10/13/1994 15,000
7,200 Contra Costa, California, Transportation Authority, Sales Tax Revenue
Bonds, VRDN, Series A, 3.55% due 3/01/2009 (a) 7,200
4,500 Contra Costa County, California, M/F Revenue Refunding Bonds (Delta
Square Project), VRDN, Series A, 3.55% due 8/01/2007 (a) 4,500
Del Mar Racetrack Authority, California, CP, Series 1993:
2,000 3.05% due 10/19/1994 2,000
3,000 3.40% due 10/25/1994 3,000
Eagle Tax Exempt Trust, VRDN (a):
21,400 Series 1994 C-6, 3.77% due 8/01/2017 21,400
14,800 Series 1994 C-7, 3.77% due 8/01/2023 14,800
Eastern Municipal Water District, California, Water and Sewer Revenue
Refunding Bonds, COP:
2,500 CP, 3.10% due 10/13/1994 2,500
7,560 1993B, VRDN, 3.50% due 7/01/2020 (a) 7,560
FB California Floating Trust Certificates, VRDN (a):
52,789 Series 9, 3.87% due 4/25/1996 52,789
5,079 Series 10, 3.87% due 4/26/1996 5,079
Floating Rate Trust Certificates, VRDN (a):
10,000 Series 1992 E, 3.95% due 9/01/2006 10,000
20,000 Series 1992 H, 3.90% due 10/02/1998 20,000
10,500 Fontana, California, M/F Housing Revenue Bonds (Springtime Apartments
Project), Series A, VRDN, 3.55% due 12/01/2016 (a) 10,500
22,200 Fresno, California, Unified School District, TRAN, 4.75% due 7/19/1995 22,336
7,500 Hemet, California, M/F Housing Revenue Bonds (Pacific Senior Estates),
VRDN, Series A, 3.55% due 7/01/2007 (a) 7,500
2,300 Irvine, California, Apartment Development Revenue Bonds (San Rafael
Apartments Project), VRDN, AMT, Series A, 3.55% due 4/01/2022 (a) 2,300
Irvine, California, Improvement Bond Act of 1915 (a):
1,450 (Assessment District No. 89-10), UPDATES, 3.45% due 9/02/2015 1,450
4,500 (Assessment District No. 94-15), VRDN, 3.50% due 9/20/2020 4,500
12,600 Irvine Ranch, California, M/F Housing Revenue Bonds, VRDN, Series 1983 A,
<PAGE> 3.45% due 12/01/1995 (a) 12,600
5,780 Irvine Ranch, California, Water District Consolidated Improvement Bonds,
VRDN, 3.50% due 6/01/2015 (a) 5,780
3,900 Irvine Ranch, California, Water District (Capital Improvement
Project), VRDN, 3.45% due 8/01/2016 (a) 3,900
Irvine Ranch, California, Water District Consolidated Revenue Bonds, DATES (a):
900 3.50% due 10/01/1999 900
1,700 3.50% due 10/01/2004 1,700
3,000 3.50% due 10/01/2009 3,000
1,000 Series A, 3.55% due 10/01/2000 1,000
2,000 Series C, 3.55% due 10/01/2010 2,000
1,500 Irvine Ranch, California, Water District Consolidated Revenue Bonds,
District Nos. 105, 250, 290, VRDN, 3.55% due 8/01/2016 (a) 1,500
11,300 Irvine Ranch, California, Water District Revenue Refunding Bonds, VRDN,
Series B, 3.80% due 8/01/2009 (a) 11,300
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California $ 2,700 Irvine Ranch, California, Water District, VRDN, 3.50% due 4/01/2033 (a) $ 2,700
(continued) Irvine Ranch, California, Water Improvement, VRDN, Series A (a):
2,000 District No. 182, 3.50% due 11/15/2013 2,000
900 District No. 284, 3.50% due 11/15/2013 900
1,700 Kern County, California, COP (Kern Public Facilities Project), VRDN, Series A,
3.60% due 8/01/2008 (a) 1,700
3,260 Kings County, California, Board of Education, TRAN, 4.25% due 7/28/1995 3,262
Long Beach, California, Harbor Revenue Bonds, CP, AMT, Series A:
21,800 3.05% due 10/19/1994 21,800
14,500 3.20% due 10/19/1994 14,500
2,000 Long Beach, California, TRAN, 4.75% due 9/20/1995 2,011
Los Angeles, California, Department of Water and Power, CP:
2,000 3.40% due 10/25/1994 2,000
3,000 3.40% due 10/28/1994 3,000
8,700 Los Angeles, California, M/F Housing Revenue Bonds (Beverly Park
Apartments Project), VRDN, AMT, Series A, 3.45% due 8/01/2018 (a) 8,700
Los Angeles, California, Wastewater System Revenue Bonds, CP:
7,000 3.10% due 10/13/1994 7,000
6,200 3.05% due 10/19/1994 6,200
15,400 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax
Revenue Refunding Bonds (Proposition C-Second Senior), VRDN, Series A,
3.50% due 7/01/2020(a) 15,400
Los Angeles County, California, Transportation Commission Sales Tax
Revenue Bonds, CP, Series A:
16,000 3.15% due 10/13/1994 16,000
<PAGE> 10,000 3.10% due 11/09/1994 10,000
Los Angeles County, California, Transportation Communication Sales Tax
Revenue Bonds, CP:
16,000 3.15% due 10/13/1994 16,000
6,600 3% due 11/09/1994 6,600
7,455 3% due 11/10/1994 7,455
15,000 Marin County, California, TRAN, 4.25% due 7/06/1995 15,055
3,000 Metropolitan Water District Southern California Refunding Bonds, Series A3,
UT, 4% due 3/01/1995 3,007
5,000 Moor Park, California, M/F Revenue Refunding Bonds (Le Club Apartments
Project), Series A, VRDN, 3.65% due 11/01/2015 (a) 5,000
20,000 Oakland, California, TRAN, 4.50% due 7/24/1995 20,080
3,595 Orange County, California, Apartment Development Revenue Bonds (Irvine Co.),
Issue V, 3.10% due 10/07/1994 3,595
5,000 Orange County, California, Improvement Board Act of 1915 Revenue Bonds
(Irvine Coast Assessment District No. 88-1), VRDN, 3.60% due 9/02/2018 (a) 5,000
Orange County, California, Various Sanitation Districts Revenue Bonds,
COP, VRDN (a):
4,100 Nos. 1, 2, 3, 5, 7, 11, 13 & 14, 3.45% due 8/01/2015 4,100
14,595 Nos. 1-3, 5-7 & 11, 3.50% due 8/01/2013 14,594
10,400 Nos. 1-7 & 11, 3.45% due 8/01/2016 10,400
8,000 Orange County, California, Water District Revenue Bonds (Project B),
VRDN, 3.45% due 8/15/2015 (a) 8,000
12,500 Orange County, California, Water District, TRAN, 2.95% due 11/07/1994 12,500
6,400 Oxnard, California, Union High School District, TRAN, 4.50% due 7/13/1995 6,429
Redlands, California, M/F Housing Revenue Bonds, VRDN, Series A (a):
2,900 (Orange Village Apartments Project), AMT, 3.55% due 8/01/2018 2,900
2,850 (Parkview Terrace Project), 3.55% due 2/01/2016 2,850
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California Riverside County, California, COP (Riverside County Public Facilities),
(concluded) ACES, (a):
$ 10,000 Series A, 3.65% due 12/01/2015 $ 10,000
6,400 Series B, 3.65% due 12/01/2015 6,400
1,660 Series D, 3.65% due 12/01/2015 1,660
13,600 Roseville, California, Finance Authority, Hospital Lease Revenue Bonds
(Roseville Hospital), VRDN, Series A, 3.55% due 10/01/2014 (a) 13,600
Sacramento, California, Municipal Utility District, Series H, CP:
16,750 3.05% due 10/13/1994 16,750
4,000 3% due 11/10/1994 4,000
7,000 3% due 11/14/1994 7,000
<PAGE> 5,000 Sacramento County, California, M/F Housing Revenue Bonds, VRDN, Series C,
3.75% due 4/15/2007 (a) 5,000
6,110 San Bernardino County, California, Residential Mortgage Revenue Refunding
Bonds (Ramona Garden), VRDN, Series A, 3.65% due 2/01/2017 (a) 6,110
San Diego, California, M/F Housing Revenue Bonds, VRDN (a):
13,000 (Nobel Court Apartments), 3.60% due 12/01/2008 13,000
4,500 Refunding (University Town Center Apartments), 3.35% due 10/01/2015 4,500
San Diego County, California, Regional Transportation Commission Sales
Tax Revenue Bonds (Second Senior), VRDN, Series A (a):
8,500 3.50% due 4/01/2008 8,500
10,700 3.55% due 4/01/2008 10,700
4,000 San Francisco, California, City and County Redevelopment Agency, M/F Revenue
Bonds (Bayside Village Project), VRDN, Series B, 3.60% due 12/01/2005 (a) 4,000
39,940 San Mateo, California, TRAN, GO, 4.50% due 7/13/1995 40,154
41,700 Santa Clara County, California, TRAN, 4.25% due 7/07/1995 41,848
5,325 Santa Rosa, California, M/F Housing Revenue Bonds (Oak Creek Apartments
Project), VRDN, AMT, Series A, 3.55% due 6/01/2018 (a) 5,325
3,275 Simi Valley, California, Community Redevelopment Agency, M/F Housing
Revenue Bonds (Ashlee Manor Project), VRDN, Series A, AMT, 3.55%
due 10/01/2017 (a) 3,275
4,000 Solano County, California, TRAN, 3.25% due 11/01/1994 4,002
37,000 Southern California Public Power Authority, Revenue Refunding Bonds
(Transmission Project), VRDN, 3.45% due 7/01/2019 (a) 37,000
14,000 Tulare County, California, TRAN, 4.75% due 8/25/1995 14,061
3,000 Ventura County, California, TRAN, 4.50% due 8/01/1995 3,016
Puerto Rico-- 2,000 Puerto Rico Commonwealth, Government Development Bank, Revenue
0.6% Refunding Bonds, VRDN, 3.55% due 12/01/2015 (a) 2,000
6,970 Puerto Rico Housing Finance Corporation, VRDN, 3.30% due 10/01/2011 (a) 6,970
Total Investments (Cost--$1,212,320*)--100.3% 1,212,320
Liabilities in Excess of Other Assets--(0.3%) (3,500)
----------
Net Assets--100.0% $1,208,820
==========
<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 September 30, 1994.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1994
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,212,320,475) (Note 1a) $ 1,212,320,475
Cash 1,812,848
Receivables:
Interest $ 6,261,106
Beneficial interest sold 5,447 6,266,553
--------------
Prepaid registration fees and other assets (Note 1d) 20,944
---------------
Total assets 1,220,420,820
---------------
Liabilities:
Payables:
Securities purchased 10,767,763
Investment adviser (Note 2) 442,832
Distributor (Note 2) 295,228 11,505,823
--------------
Accrued expenses and other liabilities 94,702
---------------
Total liabilities 11,600,525
---------------
Net Assets $ 1,208,820,295
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 120,977,041
Paid-in capital in excess of par 1,088,793,369
Accumulated realized capital losses--net (Note 4) (950,115)
---------------
Net Assets--Equivalent to $1.00 per share based on 1,209,770,410 shares of
beneficial interest outstanding $ 1,208,820,295
===============
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1994
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 17,434,316
Expenses:
Investment advisory fees (Note 2) $ 2,701,881
Distribution fees (Note 2) 749,958
Transfer agent fees (Note 2) 81,384
Accounting services (Note 2) 55,457
Custodian fees 35,181
Printing and shareholder reports 29,951
Professional fees 25,230
Registration fees (Note 1d) 20,239
Trustees' fees and expenses 7,448
Pricing fees 5,912
Other 7,838
--------------
Total expenses 3,720,479
---------------
Investment income--net 13,713,837
Realized Loss on Investments--Net (Note 1c) (463,029)
---------------
Net Increase in Net Assets Resulting from Operations $ 13,250,808
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
For the Six For the Year
CMA CALIFORNIA MUNICIPAL MONEY FUND Months Ended Ended
STATEMENTS OF CHANGES IN NET ASSETS September 30, 1994 March 31, 1994
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net $ 13,713,837 $ 20,859,333
Realized loss on investments--net (463,029) (467,649)
--------------- ---------------
Net increase in net assets resulting from operations 13,250,808 20,391,684
--------------- ---------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (13,713,837) (20,855,158)
Realized gain on investments--net -- (100,764)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (13,713,837) (20,955,922)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,967,182,345 3,766,542,841
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 13,714,500 20,933,840
--------------- ---------------
1,980,896,845 3,787,476,681
Cost of shares redeemed (1,996,773,708) (3,576,552,548)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (15,876,863) 210,924,133
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets (16,339,892) 210,359,895
Beginning of period 1,225,160,187 1,014,800,292
--------------- ---------------
End of period $ 1,208,820,295 $ 1,225,160,187
=============== ===============
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios
have been derived from information For the Six
provided in the financial statements. Months Ended For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: Sept. 30, 1994 1994 1993 1992 1991
<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 .02 .02 .03 .05
---------- ---------- ---------- ---------- ----------
Total from investment operations .01 .02 .02 .03 .05
---------- ---------- ---------- ---------- ----------
Less dividends:
Investment income--net (.01) (.02) (.02) (.03) (.05)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.27%* 1.93% 2.25% 3.48% 4.96%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .49%* .50% .51% .51% .50%
========== ========== ========== ========== ==========
Expenses, net of reimbursement .62%* .62% .63% .63% .62%
========== ========== ========== ========== ==========
Expenses .62%* .62% .63% .63% .62%
========== ========== ========== ========== ==========
Investment income--net 2.27%* 1.91% 2.22% 3.42% 4.83%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $1,208,820 $1,225,160 $1,014,800 $1,033,423 $1,163,288
========== ========== ========== ========== ==========
<FN>
*Annualized.
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 management investment 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 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 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.
<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"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co. ("ML & Co."). The limited partners
are ML & Co. and Fund Asset Management, Inc. ("FAMI"), 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 in any fiscal year
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 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.
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
<PAGE>
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, FAMI, PSI, 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.
CMA CALIFORNIA
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
<PAGE>
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].
