CMA
CMA California
Municipal Money Fund
Semi-Annual Report
September 30, 1995
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.
<PAGE>
CMA California
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1995, CMA California
Municipal Money Fund paid shareholders a net annualized yield of
3.24%*. As of September 30, 1995, the Fund's 7-day yield was 3.39%.
The Environment
After losing momentum through the second calendar quarter, it now
appears that the US economy has resumed a moderate growth trend.
Gross domestic product growth for the three months ended June 30 was
revised to show that the economy expanded at a 1.1% pace, rather
than the 0.5% rate that was originally reported. The employment
report for August exceeded consensus expectations, although most of
the new jobs created were in the service sector, reflecting the
ongoing sluggishness in manufacturing. However, durable goods
orders rebounded somewhat in August, supported by stronger
automobile sales. Reflecting the trend of renewed economic growth--
and continued containment of inflationary pressures--the Federal
Reserve Board signaled no shift in monetary policy following its
September meeting.
<PAGE>
One of the major developments during the latter part of the period
under review was the strengthening of the US dollar relative to the
yen and the Deutschemark. Improving interest rate differentials
favoring the US currency, combined with coordinated central bank
intervention and more positive investor sentiment, have helped to
bolster the dollar in foreign exchange markets. Other factors that
appear to be improving the US dollar's outlook in the near term are
a pick-up in capital flows to the United States and the prospect of
increased capital outflows from Japan. However, it remains to be
seen if the US dollar's strengthening trend can continue without
significant improvements in the US budget and trade deficits.
[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, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
Investment Outlook and Strategy
Short-term interest rates continued to fall relatively unabated
during the six-month period ended September 30, 1995 as they have
been since late 1994. A series of economic data releases indicated
that the severely restrictive monetary policy undertaken by the
Federal Reserve Board in 1994 had taken effect on the US economy in
the form of moderating growth. Additionally, the news on inflation
continued to be overwhelmingly favorable, which provided the
backdrop for a falling interest rate environment. Investors began to
anticipate that the Federal Reserve Board eventually would have to
begin cutting interest rates to avoid the possibility of a recession
in the United States. In fact, on July 6, 1995, the Federal Reserve
Board cut its key interest rate by 25 basis points (0.25%) to 5.75%,
confirming that an economic switch had occurred and signaling a
change in monetary policy from a restrictive stance to a more
neutral stance. This series of events provided the impetus for the
yield curve to flatten over the course of the six-month period ended
September 30, 1995. For instance, while yields on three-month US
Treasury bills fell approximately 45 basis points during the period,
the yield on one-year US Treasury bills dropped nearly 95 basis
points during the same period.
<PAGE>
The tax-exempt market was extremely active during the six-month
period ended September 30, 1995. This activity began in mid-April
during "tax time," a period when tax-exempt money funds typically
experience redemptions associated with the payment of income taxes.
Often these redemptions can equal 5% or more of a fund's assets.
Consequently, in April and early May interest rates on variable rate
demand securities typically rise as dealers attempt to make these
products appear more attractive to investors. At this same time,
assets of California tax-exempt money funds decreased by
approximately 2% and yields on variable rate securities increased by
more than 50 basis points. As a result, during April and May we
maintained a short average portfolio maturity to seek to capitalize
on the higher interest rates available at the time.
This activity was followed in the early summer by the annual note
season, a period in which the State of California and its
municipalities end their fiscal year on June 30 and enter the market
to finance their budgetary needs for their upcoming fiscal year.
This year many California issues were sold with credit enhancements,
usually letters of credit from various banks to support the
creditworthiness of individual cities, counties and school districts
whose revenues have been weakened by the continued economic
recession in California. Issuance in this period totaled almost $7
billion. The State of California itself did not enter the market
with any financing this year. The previously issued $4.0 billion in
State of California Revenue Anticipation Warrants continue to be the
most actively traded notes in the marketplace.
The flat yield curve compelled us to maintain an average portfolio
maturity in the mid 40-day range until the end of the six-month
period, when signs of a slowing economy seemed to indicate that the
Federal Reserve Board was more inclined to continue to reduce short-
term interest rates. In such an environment, yields on shorter-term
securities remain at or near those of longer-term securities such
that investors receive no yield premium as a reward for extending
their maturity risk. However, toward the end of the six-month period
ended September 30, 1995, we extended the Fund's average portfolio
maturity in order to lock in attractive yields and capitalize on the
limited supply available in the final quarter of the year.
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
<PAGE>
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Helen M. Sheehan)
Helen M. Sheehan
Vice President and Portfolio Manager
October 25, 1995
We are pleased to announce that Helen Marie Sheehan is responsible
for the day-to-day management of CMA California Municipal Money
Fund. Ms. Sheehan has been employed by Merrill Lynch Asset
Management, L.P. since 1985 and as a Vice President and Portfolio
Manager in the Tax-Exempt Bond Department since 1991.
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
GO General Obligation Bonds
HFA Housing Financing Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAW Revenue Anticipation Warrants
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California-- $ 6,000 Alameda County, California, IDA, IDR, Refunding (Hoover Universal Inc.
95.2% Project), VRDN, 4.40% due 6/01/2004 (a) $ 6,000
12,700 Big Bear Lake, California, IDR (Southwest Gas Corporation Project),
VRDN, AMT, Series A, 4.30% due 12/01/2028 (a) 12,700
California Health Facilities Financing Authority Revenue Bonds, VRDN (a):
4,800 (Catholic Healthcare West), Series A, 4.15% due 7/01/2009 (b) 4,800
3,600 (Catholic Healthcare West), Series B, 4.15% due 7/01/2016 (b) 3,600
5,700 (Catholic Healthcare West), Series C, 4.15% due 7/01/2020 (b) 5,700
14,000 (Floating Pool Program), 4.10% due 9/01/2020 14,000
11,645 (Huntington Memorial Hospital), 4.10% due 11/01/2010 11,645
1,600 (Pooled Loan Program), Series 85B, 4.10% due 10/01/2010 1,600
2,800 (Pooled Loan Program), Series A, 4.10% due 6/01/2007 2,800
15,000 Refunding (Catholic West), Series D, 4.15% due 7/01/2018 (b) 15,000
5,400 (Scripps Memorial Hospital), Series A, 4.10% due 12/01/2005 (b) 5,400
4,100 (Scripps Memorial Hospital), Series B, 4.10% due 12/01/2015 (b) 4,100
10,000 California HFA, Multi-Unit Rental Housing Revenue Bonds, Series A, 3.75%
due 11/01/1995 (b) 10,000
California Pollution Control Financing Authority, PCR, CP
(Southern California Edison):
16,100 Series A, 4.35% due 2/28/2008 16,100
900 Series B, 4.35% due 2/28/2008 900
9,050 Series C, 4.35% due 2/28/2008 9,050
13,835 Series D, 4.35% due 2/28/2008 13,835
4,200 California Pollution Control Financing Authority, PCR, Refunding
(Exxon Project), VRDN, 4.35% due 12/01/2012 (a) 4,200
California Pollution Control Financing Authority, PCR, Refunding
(Pacific Gas & Electric), CP:
15,000 AMT, Series A, 3.40% due 10/11/1995 15,000
25,100 AMT, Series B, 3.95% due 10/05/1995 25,100
14,100 AMT, Series B, 3.75% due 10/13/1995 14,100
5,000 AMT, Series B, 3.90% due 10/25/1995 5,000
2,500 AMT, Series B, 3.95% due 10/26/1995 2,500
9,100 AMT, Series B, 3.90% due 10/27/1995 9,100
22,900 AMT, Series B, 3.85% due 12/12/1995 22,900
15,100 Series E, 3.60% due 10/06/1995 15,100
23,400 Series E, 3.70% due 10/13/1995 23,400
15,000 Series E, 3.70% due 10/20/1995 15,000
20,000 Series F, 3.70% due 10/02/1995 20,000
25,500 Series F, 3.70% due 10/11/1995 25,500
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California California Pollution Control Financing Authority, Resource Recovery
(continued) Revenue Bonds, VRDN, AMT (a):
$ 5,700 (Atlantic Richfield Company Project), Series A, 4.60% due 12/01/2024 $ 5,700
7,700 (Delano Project), 4.50% due 8/01/2019 7,700
22,700 (Delano Project), Series 1991, 4.50% due 8/01/2019 22,700
7,500 (Honey Lake Power Project), 4.50% due 9/01/2018 7,500
16,800 Refunding (Ultra Power Malaga Project), Series A, 4.55% due 4/01/2017 16,800
1,600 Refunding (Ultra Power Malaga Project), Series B, 4.55% due 4/01/2017 1,600
2,300 Refunding (Ultra Power Rocklin Project), Series B, 4.55% due 6/01/2017 2,300
2,400 (Sanger Project), Series A, 4.35% due 9/01/2020 2,400
5,000 California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds (North County Recycling Center), VRDN, Series B, 4.10%
due 7/01/2017 (a) 5,000
California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds (Shell Oil Co.-Martinez Project), VRDN, AMT (a):
32,900 Series A, 4.55% due 10/01/2024 32,900
2,200 Series B, 4.55% due 12/01/2024 2,200
25,000 California Public Capital Improvements Financing Authority Revenue Bonds
(Pooled Loan Project), Series D, 3.80% due 6/01/2028 25,000
California State Department of Water Resource Revenue Bonds
(Central Valley Project):
1,800 CP, 3.55% due 10/02/1995 1,800
3,867 CP, 3.55% due 10/13/1995 3,867
4,500 Series A, 7.50% due 12/01/1995 (d) 4,597
6,000 VRDN, Series N-V2, 4.10% due 12/01/2025 (a) 6,000
10,000 California State GO, VRDN, 4.49% due 11/01/2020 (a) 10,000
California State RAW, Series C:
2,080 5.75% due 4/25/1996 (c) 2,102
88,190 5.75% due 4/25/1996 88,857
19,400 California Statewide Community Development Authority, Revenue Refunding
Bonds (Saint Joseph Health System), VRDN, COP, 4.25% due 7/01/2008 (a) 19,400
900 California Statewide Community Development Authority, Solid Waste
Facility Revenue Bonds (Chevron United States Inc. Project), VRDN, AMT,
4.55% due 12/15/2024 (a) 900
Chula Vista, California, IDR (San Diego Electric & Gas), CP, AMT:
10,000 Series D, 3.80% due 10/02/1995 10,000
20,000 Series D, 3.95% due 12/08/1995 20,000
10,000 Series D, 3.90% due 12/13/1995 10,000
20,000 Series E, 4% due 11/09/1995 20,000
27,500 Clovis, California, Unified School District, TRAN, UT, 4.50% due 7/05/1996 27,604
2,200 Contra Costa County, California, Housing Authority, M/F Mortgage Revenue
Bonds (Lakeshore Apartments), VRDN, Series A, 4.20% due 11/15/2012 (a) 2,200
2,000 Delmar, California, Racetrack Authority, BAN, CP, Series 1993,
3.70% due 10/19/1995 2,000
Eagle Tax Exempt Trust, VRDN (a):
9,500 4.49% due 2/01/2006 9,500
18,800 Series 1994 C-6, 4.44% due 8/01/2017 18,800
14,800 Series 1994 C-7, 4.44% due 8/01/2023 14,800
East Bay, California, Municipal Utility District, Wastewater Treatment
System Revenue Bonds, CP:
16,300 3.90% due 10/26/1995 16,300
5,100 3.80% due 12/12/1995 5,100
8,550 3.80% due 12/12/1995 8,550
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California $ 5,000 East Yolo, California, Community Services District, Revenue Refunding
(continued) Bonds, 7.25% due 6/01/1996 (d) $ 5,198
6,800 Eastern Municipal Water District, California, Water and Sewer Revenue
Refunding Bonds, VRDN, COP, Series B, 4.20% due 7/01/2020 (a) (b) 6,800
20,000 Floating Rate Trust Certificates, VRDN, Series 1992 H, 4.45%
due 10/02/1998 (a) 20,000
8,050 Fontana, California, M/F Housing Revenue Bonds (Springtime Apartments
Project), VRDN, Series A, 4.40% due 12/01/2016 (a) 8,050
Golden Empire Schools Financing Authority, California, Revenue Refunding
Bonds, VRDN (a):
9,200 (Golden Empire Project), Series B, 4.15% due 12/01/2024 9,200
11,600 (Kern High School District), Series A, 4.15% due 12/01/2024 11,600
13,000 Hayward, California, M/F Housing Revenue Bonds (Shorewood Apartments),
VRDN, Series A, 4.35% due 8/01/2014 (a) (c) 13,000
3,675 Kern County, California, Housing Authority, Mortgage Obligation Bonds,
VRDN, Series A, 4.70% due 12/30/2027 (a) 3,675
Long Beach, California, Harbor Revenue Bonds, CP, AMT, Series A:
6,500 3.75% due 10/02/1995 6,500
5,000 3.70% due 10/11/1995 5,000
19,000 3.70% due 10/12/1995 19,000
10,000 3.75% due 12/12/1995 10,000
17,000 3.80% due 12/13/1995 17,000
40,000 Long Beach, California, TRAN, 4.50% due 9/19/1996 40,205
8,700 Los Angeles, California, M/F Housing Revenue Bonds (Beverly Park
Apartments Project), VRDN, AMT, Series A, 4.05% due 8/01/2018 (a) 8,700
3,900 Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Bonds, CP, Series A, 3.60% due 10/12/1995 3,900
9,200 Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Refunding Bonds (Proposition C-Second Senior Bonds),
VRDN, Series A, 4.20% due 7/01/2020 (a) (b) 9,200
6,000 Moor Park, California, M/F Mortgage Revenue Refunding Bonds (Le Club
Apartments Project), VRDN, Series A, 4.25% due 11/01/2015 (a) 6,000
Palm Springs, California, Community Redevelopment Agency, COP, VRDN (a):
1,200 Headquarters Hotel 3, 4% due 12/01/2014 1,200
1,300 Headquarters Hotel 4, 4% due 12/01/2014 1,300
4,700 Headquarters Hotel 8, 4% due 12/01/2014 4,700
1,700 Headquarters Hotel 9, 4% due 12/01/2014 1,700
1,500 Headquarters Hotel 10, 4% due 12/01/2014 1,500
<PAGE> 11,470 Pittsburg, California, Mortgage Obligation Bonds, VRDN, Series A, 4.50%
due 12/30/2022 (a) 11,470
Redlands, California, M/F Housing Revenue Bonds, VRDN, Series A (a):
2,900 (Orange Village Apartments Project), AMT, 4.40% due 8/01/2018 2,900
3,000 Refunding (Parkview Terrace Project), 4.20% due 2/01/2016 3,000
13,900 Riverside County, California, COP (Riverside County Public Facilities),
ACES, Series A, 4.20% due 12/01/2015 (a) 13,900
Riverside County, California, Housing Authority, M/F Mortgage Revenue
Bonds, VRDN (a):
3,750 (Emeritus Park), Series 1988 B, 4.20% due 8/01/2018 3,750
6,000 (Woodcreek Village), Series 1989 D, 4.20% due 8/01/2018 6,000
14,600 Roseville, California, Finance Authority, Hospital Lease Revenue Bonds
(Roseville Hospital), VRDN, Series A, 4.20% due 10/01/2014 (a) 14,600
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California $28,567 Sacramento, California, Municipal Utility District, CP, 3.65% due
(concluded) 12/11/1995 $ 28,567
6,110 San Bernardino County, California, Residential Mortgage Revenue
Refunding Bonds (Ramona Garden Apartments), VRDN,
Series A, 4.25% due 2/01/2017 (a) 6,110
5,000 San Diego, California, Local Area Government COP, TRAN,
4.75% due 10/18/1996 5,031
San Diego, California, M/F Housing Authority Revenue Bonds, VRDN (a):
2,330 (Country Hills), Series A, 4.20% due 8/15/2013 2,330
8,035 (La Cima Apartments), Series K, 4.25% due 12/01/2008 8,035
18,000 (Nobel Court Apartments), Series L, 4.25% due 12/01/2008 18,000
8,100 San Diego County, California, Regional Transportation Commission
Sales Tax Revenue Bonds (Second Senior), VRDN, Series A, 4.10% due
4/01/2008 (a) (c) 8,100
7,085 San Francisco City and County, California, TRAN, 4.75% due 9/19/1996 7,143
25,000 San Juan, California, Unified School District, TRAN, 4.50% due 9/26/1996 25,153
10,000 San Leandro, California, M/F Revenue Bonds (Parkside Commons), VRDN,
Series A, 4.20% due 7/15/2018 (a) 10,000
5,325 Santa Rosa, California, M/F Housing Revenue Bonds (Oak Creek Apartments
Project), VRDN, AMT, Series A, 4.40% due 6/01/2018 (a) 5,325
3,675 Simi Valley, California, Community Redevelopment Agency, M/F Housing
Revenue Bonds (Ashlee Manor Project), VRDN, Series A, 4.40% due
10/01/2017 (a) 3,675
8,900 Simi Valley, California, M/F Housing Revenue Refunding Bonds (Cochran
Street Project), Issue A, 4.25% due 2/15/2008 8,900
<PAGE>
Puerto Rico-- Puerto Rico Government Development Bank Revenue
6.2% Bonds, CP:
7,900 3.70% due 12/11/1995 7,900
20,000 3.70% due 12/12/1995 20,000
8,500 3.70% due 12/12/1995 8,500
3,000 3.70% due 12/12/1995 3,000
15,000 3.70% due 12/12/1995 15,000
21,800 3.70% due 12/13/1995 21,800
Total Investments (Cost--$1,249,924*)--101.4% 1,249,924
Liabilities in Excess of Other Assets--(1.4%) (16,919)
-----------
Net Assets--100.0% $ 1,233,005
===========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the interest
rate in effect at September 30, 1995.
(b)MBIA Insured.
(c)FGIC Insured.
(d)Prerefunded.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,249,924,304) (Note 1a) $ 1,249,924,304
Cash 71,560
Receivables:
Interest $ 5,054,699
Securities sold 57,524 5,112,223
---------------
Prepaid registration fees and other assets (Note 1d) 12,183
---------------
Total assets 1,255,120,270
---------------
<PAGE>
Liabilities:
Payables:
Securities purchased 21,228,625
Investment adviser (Note 2) 442,071
Distributor (Note 2) 301,879
Beneficial interest redeemed 30,895 22,003,470
---------------
Accrued expenses and other liabilities 111,540
---------------
Total liabilities 22,115,010
---------------
Net Assets $ 1,233,005,260
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 123,396,711
Paid-in capital in excess of par 1,110,570,397
Undistributed investment income--net 36,734
Accumulated realized capital losses--net (Note 4) (998,582)
---------------
Net Assets--Equivalent to $1.00 per share based on 1,233,967,107 shares of
beneficial interest outstanding $ 1,233,005,260
===============
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 22,961,364
Expenses:
Investment advisory fees (Note 2) $ 2,653,288
Distribution fees (Note 2) 737,950
Transfer agent fees (Note 2) 109,129
Accounting services (Note 2) 54,195
Printing and shareholder reports 38,359
Registration fees (Note 1d) 37,897
Custodian fees 35,308
Professional fees 30,650
Trustees' fees and expenses 7,029
Pricing fees 6,829
Other 209,784
---------------
Total expenses 3,920,418
---------------
Investment income--net 19,040,946
Realized Loss on Investments--Net (Note 1c) (3,465)
---------------
Net Increase in Net Assets Resulting from Operations $ 19,037,481
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
For the Six For the
CMA CALIFORNIA MUNICIPAL MONEY FUND Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS September 30, 1995 March 31, 1995
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net $ 19,040,946 $ 31,434,272
Realized loss on investments--net (3,465) (508,031)
--------------- ---------------
Net increase in net assets resulting from operations 19,037,481 30,926,241
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (19,017,796) (31,420,688)
--------------- ---------------
Net decrease in net assets resulting from dividends
to shareholders (19,017,796) (31,420,688)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 2,078,429,240 4,208,416,998
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 19,017,815 31,421,185
--------------- ---------------
2,097,447,055 4,239,838,183
Cost of shares redeemed (2,032,695,899) (4,296,269,504)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest transactions 64,751,156 (56,431,321)
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets 64,770,841 (56,925,768)
Beginning of period 1,168,234,419 1,225,160,187
--------------- ---------------
End of period* $ 1,233,005,260 $ 1,168,234,419
=============== ===============
<FN>
*Undistributed investment income-- net $ 36,734 $ 13,584
=============== ===============
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have
been derived from information provided in the For the Six
financial statements. Months Ended For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: Sept. 30, 1995 1995 1994 1993 1992
<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 .02 .03 .02 .02 .03
---------- ---------- ---------- ---------- ----------
Total from investment operations .02 .03 .02 .02 .03
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.02) (.03) (.02) (.02) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 3.24%* 2.66% 1.93% 2.25% 3.48%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses, excluding distribution fees .54%* .51% .50% .51% .51%
========== ========== ========== ========== ==========
Expenses .66%* .63% .62% .63% .63%
========== ========== ========== ========== ==========
Investment income--net 3.22%* 2.62% 1.91% 2.22% 3.42%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $1,233,005 $1,168,234 $1,225,160 $1,014,800 $1,033,423
========== ========== ========== ========== ==========
<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. 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.
<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" 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.
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.
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 Adviser during the 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 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.
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.
<PAGE>
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, 1995, the Fund had a net capital loss carryforward of
approximately $948,000, of which $472,000 expires in 2002 and
$476,000 expires in 2003. This amount 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
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*
<PAGE>
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
