CMA
CMA CALIFORNIA
MUNICIPAL MONEY FUND
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Semi-Annual Report
September 30, 1999
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[LOGO] Merrill Lynch
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To Our Shareholders:
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For the six-month period ended September 30, 1999, CMA California Municipal
Money Fund paid shareholders a net annualized yield of 2.46%*. As of September
30, 1999, the Fund's 7-day yield was 2.82%.
Economic Environment
During the six-month period ended September 30, 1999, continued strength in the
domestic economy and increasing signs of recovery in the global economies moved
the Federal Reserve Board to raise short-term interest rates for the first time
since March 1997. The 50 basis point (0.50%) increase in the Federal Funds
target rate negatively influenced both fixed-income and equity markets.
Fixed-income markets, while not surprised by the interest rate increases, saw US
Treasury yields move sharply higher across the maturity spectrum. Equity
markets, after reaching record levels by late August 1999, experienced sizable
declines after the second tightening by the Federal Reserve Board on August 24,
1999.
Investment Strategy
CMA California Municipal Money Fund began the six-month period with an average
portfolio maturity in the 50-day range. The Fund experienced heavy redemptions
during the income tax-payment period in late April and early May. The Fund's
position in variable rate demand notes allowed us to satisfy the outflows that
decreased the Fund's assets by approximately 13%.
The annual California note season commenced in June 1999 as issuers came to
market with $3.8 billion in short-term municipal offerings. We actively
purchased several issues, including our largest purchase of $108 million in Los
Angeles County tax revenue anticipation notes. This issue provided the Fund with
solid credit quality, excellent liquidity and an attractive yield. The state of
California also came to market in late September with $1.0 billion in revenue
anticipation notes. These notes are likely to satisfy the state's short-term
financing needs through June 30, 2000.
California's financial outlook continued to improve as tax revenues remained
well above projected levels. May 1999 revisions to budget numbers projected an
additional $4.3 billion in revenues for fiscal year 1999-2000. The improved
financial picture has drastically reduced the state's reliance on short-term
financing, which decreased from $3.0 billion in 1997 to its current level of
$1.0 billion.
We also remained an active buyer of tax-exempt commercial paper and continued to
maintain approximately 30% of Fund holdings in this sector. Tax-exempt
commercial paper remains an important means of diversification and an essential
tool in achieving our desired
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
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average portfolio maturity. Our portfolio strategy during the period continued
to provide share holders with a competitive yield relative to the Fund's peer
group as measured by IBC Financial Data.
In Conclusion
In the months ahead, we will continue to closely monitor the activities of the
Federal Reserve Board. The investment community remains cautious on the belief
that short-term US interest rates may have to move higher than current levels to
effectively slow the domestic economy. In the short-term municipal market,
year-end inventory concerns and the asset inflows associated with January coupon
payments and maturities are likely to influence the direction of short-term
yields in the upcoming months.
We thank you for your continued support of CMA California Municipal Money Fund,
and we look forward to serving your investment needs in the months and years
ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Helen M. Sheehan
Helen M. Sheehan
Vice President and Portfolio Manager
November 4, 1999
2
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (IN THOUSANDS)
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<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
California-- ABN Amro Munitops Certificates Trust, VRDN (a):
92.8% $ 6,500 Series 1998-17, 3.62% due 7/05/2006 (c) ............................... $ 6,500
5,373 Series 1999-7, 3.75% due 7/04/2007 (b) ................................ 5,373
12,000 Series 1999-8, 3.50% due 4/04/2007 (c) ................................ 12,000
California Educational Facilities Authority Revenue Bonds, VRDN (a):
6,500 (Life Chiropractic College), 3.55% due 1/01/2025 ...................... 6,500
4,000 (Pepperdine University), Series B, 3.25% due 11/01/2029 ............... 4,000
5,600 California Pollution Control Financing Authority, Environmental
Improvement Revenue Bonds (Atlantic), VRDN, AMT,
3.40% due 12/01/2032 (a) .................................................. 5,600
California Pollution Control Financing Authority, PCR, Refunding
(Pacific Gas and Electric), VRDN (a):
3,000 AMT, Series B, 3.85% due 11/01/2026 ................................... 3,000
6,450 AMT, Series C, 3.85% due 11/01/2026 ................................... 6,450
2,000 Series C, 3.80% due 11/01/2026 ........................................ 2,000
16,600 Series D, 3.80% due 11/01/2026 ........................................ 16,600
22,000 Series E, 2.75% due 11/01/2026 ........................................ 22,000
2,200 Series F, 3.80% due 11/01/2026 ........................................ 2,200
California Pollution Control Financing Authority, PCR, Refunding
(Southern California Edison), VRDN (a):
3,300 Series B, 3.80% due 2/28/2008 ......................................... 3,300
4,250 Series C, 3.80% due 2/28/2008 ......................................... 4,250
12,700 Series D, 3.80% due 2/28/2008 ......................................... 12,700
5,400 California Pollution Control Financing Authority, PCR (Southern
California Edison), CP, Series A, 3.40% due 2/10/2000 ..................... 5,400
4,600 California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds (Atlantic Richfield Co. Project), VRDN, Series A,
3.90% due 12/01/2024 (a) .................................................. 4,600
23,300 California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds (Delano Project), VRDN, AMT, 3.90% due 8/01/2019 (a) ........ 23,300
California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds, VRDN, AMT (a):
3,255 (Edco Disposal Corp. Project), Series A, 3.55% due 10/01/2016 ......... 3,255
4,000 (Shell Martinez Refining), Series A, 3.50% due 10/01/2031 ............. 4,000
3,900 (Shell Oil Company Martinez Project), Series A, 3.80% due 10/01/2024 .. 3,900
4,965 (Taormina Industries Inc. Project), 3.35% due 8/01/2014 ............... 4,965
9,300 (Taormina Industries Inc. Project), Series A, 3.35% due 8/01/2016 ..... 9,300
16,385 (Taormina Industries Inc. Project), Series B, 3.35% due 8/01/2014 ..... 16,385
</TABLE>
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Portfolio Abbreviations for CMA California Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
FLOATS Floating Rate Securities
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
3
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (CONTINUED) (IN THOUSANDS)
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<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
California $ 75,000 California Public Capital Improvements Financing Authority Revenue Bonds
(continued) (Pooled Project), Series D, 3.35% due 12/15/1999 .......................... $ 75,000
20,000 California School Cash Reserve Program Authority Revenue Bonds, Pool,
Series A, 4% due 7/03/2000 (d) ............................................ 20,082
11,800 California School Facilities Financing Corporation, COP, Refunding
(Capital Improvement Financing Projects), VRDN, Series C, 3.45% due
7/01/2022 (a) ............................................................. 11,800
California State, CP:
8,700 3.05% due 10/14/1999 .................................................. 8,700
10,000 3.30% due 11/08/1999 .................................................. 10,000
5,000 3.35% due 11/08/1999 .................................................. 5,000
California State Economic Development Financing Authority, IDR,
VRDN, AMT (a):
4,000 (Harvel Plastics Inc. Project), 3.95% due 3/01/2010 ................... 4,000
5,000 (Kuhnash Properties/Arkay Project), 3.65% due 4/01/2017 ............... 5,000
California State Economic Development Financing Authority Revenue Bonds
(California Independent Systems Project), VRDN (a):
3,000 Series B, 3.80% due 4/01/2008 ......................................... 3,000
18,730 Series C, 3.75% due 4/01/2008 ......................................... 18,730
5,000 California State, FLOATS, Series SG 86, 4% due 8/01/2015 (a)(c) ........... 5,000
1,750 California State, GO, 4.50% due 10/01/1999 ................................ 1,750
California State, GO, MSTR, VRDN (a):
8,555 Series SGA 7, 3.47% due 9/01/2018 (e) ................................. 8,555
9,600 Series SGA 39, 3.47% due 6/01/2014 (b) ................................ 9,600
8,340 Series SGA 40, 3.47% due 6/01/2013 (c) ................................ 8,340
9,370 Series SGA 72, 3.47% due 6/01/2017 (c) ................................ 9,370
24,600 California Statewide Communities Development Authority, COP (Continuing
Care/University Project), VRDN, 3.80% due 11/15/2028 (a) .................. 24,600
California Statewide Communities Development Authority, M/F Housing
Revenue Bonds, VRDN, AMT (a):
10,000 (Canyon Creek Apartments), Series C, 3.40% due 6/15/2025 (f) .......... 10,000
3,660 (Greenback Manor Apartments), Series A, 3.50% due 2/01/2028 ........... 3,660
4,200 (Kimberly Woods), Series B, 3.40% due 6/15/2025 (f) ................... 4,200
7,090 California Statewide Communities Development Authority, Solid Waste
Facilities Revenue Bonds (Chevron U.S.A. Inc. Project), VRDN, AMT,
3.85% due 12/15/2024 (a) .................................................. 7,090
77,000 California Transit Finance Authority Revenue Bonds, VRDN,
3.60% due 10/01/2027 (a)(e) ............................................... 77,000
Chula Vista, California, IDR, Refunding (San Diego Gas & Electric Co.),
VRDN, AMT (a):
20,100 Series A, 3.95% due 3/01/2023 ......................................... 20,100
16,300 Series B, 3.90% due 12/01/2021 ........................................ 16,300
Chula Vista, California, IDR (San Diego Gas & Electric Company), CP, AMT:
20,000 Series C, 3.15% due 10/07/1999 ........................................ 20,000
10,000 Series C, 3% due 11/01/1999 ........................................... 10,000
15,000 Series E, 3% due 11/05/1999 ........................................... 15,000
Clipper Tax-Exempt, COP, VRDN, AMT, Series 98-9(a):
10,000 3.77% due 7/12/2003 ................................................... 10,000
10,545 3.77% due 9/01/2004 ................................................... 10,545
</TABLE>
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (CONTINUED) (IN THOUSANDS)
================================================================================
<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
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<C> <C> <S> <C>
California $ 29,000 Contra Costa, California, CP, 3.25% due 12/13/1999 ........................ $ 29,000
(continued) 15,525 Contra Costa, California, Water District Revenue Bonds, MSTR, VRDN,
Series SGA 24, 3.45% due 10/01/2019 (a)(b) ................................ 15,525
5,800 Dublin, California, Housing Authority, M/F Housing Revenue Bonds
(Park Sierra), VRDN, AMT, Series A, 3.35% due 6/01/2028 (a) ............... 5,800
Eagle Tax-Exempt Trust, California HFA, Mortgage Revenue Bonds, VRDN (a):
9,210 Series 1992 A-C6, 3.62% due 8/01/2017 ................................. 9,210
16,355 Series F-C7, 3.62% due 8/01/2023 (b) .................................. 16,355
Eagle Tax-Exempt Trust, California, VRDN (a):
2,660 Series 94 C-0503, 3.62% due 9/01/2003 (b) ............................. 2,660
9,705 Series 97 C-0501, 3.62% due 11/01/2020 (c) ............................ 9,705
10,390 Eagle Tax-Exempt Trust, VRDN, Series 95-050-1A, 3.62% due
2/01/2006 (a)(b) .......................................................... 10,390
East Bay, California, Municipal Utilities District, Wastewater Treatment
System Revenue Bonds, CP:
4,000 3.15% due 11/09/1999 .................................................. 4,000
19,200 3.20% due 11/08/1999 .................................................. 19,200
19,600 3.30% due 12/08/1999 .................................................. 19,600
7,050 Fontana, California, M/F Housing Revenue Bonds (Springtime Apartments
Project), VRDN, AMT, Series A, 3.50% due 12/01/2016 (a) ................... 7,050
4,685 Fresno, California, Water System Revenue Refunding Bonds, MSTR, VRDN,
Series SGA-76, 3.45% due 2/08/2000 (a)(c) ................................. 4,685
15,000 Fresno County, California, GO, TRAN, 4% due 6/30/2000 ..................... 15,063
6,620 Highland, California, Redevelopment Agency, M/F Housing Revenue Bonds
(Jeffrey Court Senior Apartments), VRDN, AMT, 3.50% due 3/01/2028 (a) ..... 6,620
14,900 Huntington Beach, California, GO, TRAN, 4.25% due 10/03/2000 .............. 15,025
2,700 Kern County, California, GO, TRAN, 4.25% due 10/01/1999 ................... 2,700
17,185 Kern County, California, Superintendent of Schools, COP, VRDN, Series A,
3.35% due 12/01/2021 (a) .................................................. 17,185
19,430 Loma Linda, California, M/F Housing Revenue Bonds (Loma Linda Springs
Apartments), VRDN, AMT, 3.45% due 7/01/2019 (a) ........................... 19,430
8,500 Long Beach, California, GO, TRAN, 4% due 10/05/1999 ....................... 8,501
Long Beach, California, Harbor Revenue Bonds, CP, AMT, Series A:
30,400 3.15% due 10/07/1999 .................................................. 30,400
15,000 3% due 11/05/1999 ..................................................... 15,000
3,000 Los Angeles, California, Department of Airports, Airport Municipal Trust
Revenue Bonds, FLOATS, Series SG 61, 3.58% due 5/15/2020 (a)(c) ........... 3,000
Los Angeles, California, Department of Water and Power, CP:
28,000 3% due 10/01/1999 ..................................................... 28,000
27,000 3.80% due 10/12/1999 .................................................. 27,000
15,000 3.25% due 12/09/1999 .................................................. 15,000
15,000 3.25% due 12/13/1999 .................................................. 15,000
Los Angeles, California, Department of Water and Power, Electric Plant
Revenue Refunding Bonds, MSTR, VRDN (a):
4,075 Series SGA 4, 3.45% due 11/15/2019 (c) ................................ 4,075
4,005 Series SGA 6, 3.45% due 11/15/2019 (b) ................................ 4,005
5,000 Los Angeles, California, Harbor Department Revenue Bonds, FLOATS,
Series SG 59, 3.58% due 8/01/2026 (a)(b) .................................. 5,000
15,590 Los Angeles, California, Unified School District, COP (Belmont Learning
Complex), VRDN, Series A, 3.20% due 12/01/2017 (a) ........................ 15,590
</TABLE>
5
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (CONTINUED) (IN THOUSANDS)
================================================================================
<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
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<C> <C> <S> <C>
California Los Angeles, California, Wastewater Systems Revenue Bonds, CP:
(continued) $ 10,000 2.95% due 11/01/1999 .................................................. $ 10,000
5,900 3.30% due 11/08/1999 .................................................. 5,900
24,430 Los Angeles County, California, Capital Asset Leasing Corporation,
Leasehold Revenue Bonds, CP, 3.10% due 10/20/1999 ......................... 24,430
107,030 Los Angeles County, California, GO, TRAN, 4% due 6/30/2000 ................ 107,557
5,700 Los Angeles County, California, Housing Authority, M/F Housing Revenue
Bonds (Park Sierra Project), VRDN, AMT, 3.40% due 12/01/2008 (a) .......... 5,700
10,000 Los Angeles County, California, Metropolitan Transportation Authority
Revenue Bonds, CP, Series A, 3.30% due 12/06/1999 ......................... 10,000
Los Angeles County, California, Metropolitan Transportation Authority,
Revenue Refunding Bonds, MSTR, VRDN (a)(e):
38,675 Series SGB 1, 3.63% due 7/01/2025 ..................................... 38,675
16,300 Series SGB 2, 3.63% due 7/01/2021 ..................................... 16,300
Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Bonds, FLOATS (a):
6,000 Series SG-46, 3.53% due 7/01/2017 (d) ................................. 6,000
50,820 Series SG-55, 3.53% due 7/01/2018 (b) ................................. 50,820
Metropolitan Water District of Southern California, CP:
5,000 3.35% due 11/08/1999 .................................................. 5,000
17,900 Series A, 3.20% due 11/01/1999 ........................................ 17,900
18,000 Series A, 3.20% due 11/08/1999 ........................................ 18,000
7,435 Monrovia, California, Unified School District, GO, MSTR, VRDN,
Series SGA 70, 3.45% due 8/01/2022 (a)(b) ................................. 7,435
35,000 Municipal Securities Trust Certificates, GO, Series 1999-78, Class A,
3.30% due 2/01/2000 ....................................................... 35,000
13,000 Oakland, California, GO, TRAN, 4.25% due 9/29/2000 ........................ 13,107
12,250 Paramount, California, Unified School District, GO, TRAN, 4.25% due
9/29/2000 ................................................................. 12,343
5,000 Pittsburg, California, Mortgage Obligation Revenue Refunding Bonds, VRDN,
Series A, 3.70% due 12/30/2031 (a) ........................................ 5,000
13,570 Port Oakland, California, Port Revenue Bonds, MSTR, VRDN, Series SG 112,
3.58% due 11/01/2025 (a)(b) ............................................... 13,570
3,150 Redlands, California, M/F Housing Revenue Bonds (Orange Village Apartments
Project), VRDN, AMT, Series A, 3.40% due 8/01/2018 (a) .................... 3,150
5,760 Sacramento, California, Municipal Utility District, Electric Revenue Bonds,
MSTR,VRDN, Series SGB 4, 3.63% due 8/15/2021 (a)(d) ....................... 5,760
9,400 Sacramento, California, Municipal Utility District, Electric Revenue
Refunding Bonds, MSTR, VRDN, Series SGA 5, 3.45% due 11/15/2006 (a)(e) .... 9,400
22,000 San Bernardino, California, City Unified School District, GO, TRAN,
3.50% due 11/30/1999 ...................................................... 22,021
10,000 San Bernardino County, California, COP, Refunding (Medical Center Financing
Project), VRDN, 3.10% due 8/01/2026 (a)(b) ................................ 10,000
5,900 San Bernardino County, California, Residential Mortgage Revenue Refunding
Bonds (Ramona Garden), VRDN, Series A, 3.50% due 2/01/2017 (a) ............ 5,900
15,000 San Diego, California, Area Local Government, COP, TRAN, Series B,
4% due 7/28/2000 .......................................................... 15,062
7,000 San Diego, California, Sewer Revenue Bonds, FLOATS, Series SG 14,
3.53% due 5/15/2020 (a) ................................................... 7,000
San Diego, California, Unified School District, GO, TRAN, Series A:
10,990 4.50% due 10/01/1999 .................................................. 10,991
13,500 4.25% due 9/29/2000 ................................................... 13,597
</TABLE>
6
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (CONTINUED) (IN THOUSANDS)
================================================================================
<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
California $ 2,500 San Diego County, California, Water Authority, CP, 3.30% due 12/06/1999 ... $ 2,500
(concluded) 10,000 San Francisco, California, Bay Area, Rapid Transit District, CP,
3.30% due 10/12/1999 ...................................................... 10,000
San Francisco, California, City and County Airport Commission,
International Airport Revenue Bonds:
10,100 CP, 3.30% due 11/09/1999 .............................................. 10,100
3,645 FLOATS, Series SG-88, 3.53% due 5/01/2021 (a)(c) ...................... 3,645
7,705 MSTR, VRDN, AMT, Series SGA 56, 3.47% due 5/01/2026 (a)(b) ............ 7,705
28,005 MSTR, VRDN, Series SG-115, 3.58% due 5/01/2020 (a)(c) ................. 28,005
16,555 MSTR, VRDN, Series SG 116, 3.58% due 5/01/2026 (a)(b) ................. 16,555
3,000 San Francisco, California, City and County Sewer Revenue Refunding Bonds,
5.50% due 10/01/1999 (d) .................................................. 3,000
16,400 San Joaquin County, California, GO, TRAN, 3.50% due 12/31/1999 ............ 16,423
13,000 San Jose, California, M/F Housing Revenue Bonds (Siena), VRDN,
3.45% due 12/01/2029 (a) .................................................. 13,000
2,000 San Jose-Santa Clara, California, Water Financing Authority, Sewer Revenue
Bonds, FLOATS, Series SG-49, 3.53% due 11/15/2020 (a)(c) .................. 2,000
12,350 Santa Barbara County, California, GO, TRAN, Series A, 4.25% due 9/29/2000 . 12,453
9,935 Santa Clara, California, Electric Revenue Refunding Bonds, MSTR, VRDN,
Series SGA-75, 3.45% due 2/08/2000 (a)(d) ................................. 9,935
2,500 Santa Clara County, California, GO, TRAN, 4.50% due 10/01/1999 ............ 2,500
8,315 Santa Cruz County, California, Public Financing Authority Revenue Bonds,
MSTR, VRDN, Series SG-23, 3.53% due 9/01/2023 (a)(b) ...................... 8,315
5,225 Santa Rosa, California, M/F Housing Revenue Bonds (Oak Creek Apartments
Project), VRDN, Series A, 3.50% due 6/01/2018 (a) ......................... 5,225
3,500 Shafter, California, IDA, IDR (Building Materials Manufacturing Corporation
Project), VRDN, 3.50% due 6/01/2029 (a) ................................... 3,500
3,550 Simi Valley, California, Community Redevelopment Agency, M/F Housing
Revenue Bonds (Ashlee Manor Project), VRDN, AMT, Series A,
3.50% due 10/01/2017 (a) .................................................. 3,550
12,000 Simi Valley, California, M/F Housing Revenue Bonds (Shadowridge
Apartments), VRDN, 3.35% due 9/01/2019 (a) ................................ 12,000
6,765 Southern California Public Power Authority, Power Project Revenue Bonds,
MSTR, VRDN, Series SG-35, 3.53% due 7/01/2012 (a)(d) ...................... 6,765
15,000 Southern California Public Power Authority, Transmission Project, Revenue
Refunding Bonds (Southern Transmission), VRDN, 3.20% due 7/01/2019 (a)(d) . 15,000
15,000 Tulare County, California, GO, TRAN, 4.25% due 6/30/2000 .................. 15,098
University of California, Board of Regents Revenue Bonds, CP:
12,500 2.85% due 10/14/1999 .................................................. 12,500
6,000 3.15% due 10/21/1999 .................................................. 6,000
20,000 3.25% due 10/25/1999 .................................................. 20,000
10,000 3.25% due 10/26/1999 .................................................. 10,000
10,000 3.30% due 11/09/1999 .................................................. 10,000
5,500 3% due 11/12/1999 ..................................................... 5,500
20,000 3.25% due 12/13/1999 .................................................. 20,000
7,000 Upland, California, Apartment Development Revenue Refunding Bonds
(Mountain Springs--Issue A), VRDN, 3.35% due 11/15/2028 (a)(f) ............ 7,000
20,000 Watereuse Finance Authority, California, Revenue Bonds, VRDN,
3.60% due 5/01/2028 (a)(e) ................................................ 20,000
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</TABLE>
7
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (CONCLUDED) (IN THOUSANDS)
================================================================================
<TABLE>
<CAPTION>
Face Value
Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
Guam--0.4% $ 7,200 Guam Power Authority Revenue Bonds, CP, 3.20% due 11/09/1999 (d) $ 7,200
- ---------------------------------------------------------------------------------------------------------------------
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank, CP:
6.5% 6,880 2.90% due 10/07/1999 .................................................. 6,880
10,000 3.15% due 10/21/1999 .................................................. 10,000
9,600 3.15% due 11/09/1999 .................................................. 9,600
9,700 3.15% due 11/15/1999 .................................................. 9,700
39,695 3.45% due 2/08/2000 ................................................... 39,695
12,020 3.45% due 2/14/2000 ................................................... 12,020
4,880 3.45% due 2/22/2000 ................................................... 4,880
7,500 3.40% due 2/24/2000 ................................................... 7,500
10,100 3.35% due 2/25/2000 ................................................... 10,100
8,000 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Refunding Bonds, VRDN, Series A, 3.45%
due 7/01/2028 (a)(d) ...................................................... 8,000
11,000 Puerto Rico Electric Power Authority, Power
Revenue Bonds, GO, MSTR, VRDN, Series SGA-43, 3.45% due 7/01/2022 (a)(b) .. 11,000
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Total Investments (Cost--$1,980,241*)--99.7% .............................. 1,980,241
Other Assets Less Liabilities--0.3% ....................................... 5,565
----------
Net Assets--100.0% ........................................................ $1,985,806
==========
=====================================================================================================================
</TABLE>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at September
30, 1999.
(b) MBIA Insured.
(c) FGIC Insured.
(d) AMBAC Insured.
(e) FSA Insured.
(f) FNMA Collateralized.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
8
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CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1999
================================================================================
<TABLE>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,980,241,284) (Note 1a) $ 1,980,241,284
Cash ............................................................ 229,667
Receivables:
Interest ....................................................... $11,143,149
Securities sold ................................................ 4,900,039 16,043,188
-----------
Prepaid registration fees and other assets (Note 1d) ............ 5,154,547
---------------
Total assets .................................................... 2,001,668,686
---------------
Liabilities:
Payables:
Securities purchased ........................................... 15,025,011
Distributor (Note 2) ........................................... 504,468
Investment adviser (Note 2) .................................... 138,818 15,668,297
-----------
Accrued expenses and other liabilities .......................... 194,629
---------------
Total liabilities ............................................... 15,862,926
---------------
Net Assets ...................................................... $ 1,985,805,760
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized ........................... $ 198,649,260
Paid-in capital in excess of par ................................ 1,787,841,684
Accumulated realized capital losses--net (Note 4) ............... (685,184)
---------------
Net Assets--Equivalent to $1.00 per share based on
1,986,492,603 shares of beneficial interest outstanding ......... $ 1,985,805,760
===============
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
- --------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999
================================================================================
Investment Income (Note 1c):
Interest and amortization of premium and discount
earned .............................................. $30,622,510
Expenses:
Investment advisory fees (Note 2) ................... $4,226,138
Distribution fees (Note 2) .......................... 1,244,751
Transfer agent fees (Note 2) ........................ 113,809
Accounting services (Note 2) ........................ 82,566
Custodian fees ...................................... 53,813
Registration fees (Note 1d) ......................... 43,119
Printing and shareholder reports .................... 31,661
Professional fees ................................... 30,175
Pricing fees ........................................ 8,157
Trustees' fees and expenses ......................... 6,803
Other ............................................... 10,045
----------
Total expenses ...................................... 5,851,037
-----------
Investment income--net .............................. 24,771,473
Realized Gain on Investments--Net (Note 1c) ......... 147,782
-----------
Net Increase in Net Assets Resulting from
Operations .......................................... $24,919,255
===========
See Notes to Financial Statements.
10
<PAGE>
- --------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
For the Six For the Year
Months Ended Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 1999 1999
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Investment income--net ............................. $ 24,771,473 $ 54,857,280
Realized gain on investments--net .................. 147,782 125,182
--------------- ---------------
Net increase in net assets resulting from operations 24,919,255 54,982,462
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net ............................. (24,771,473) (54,857,280)
--------------- ---------------
Net decrease in net assets resulting from
dividends to shareholders .......................... (24,771,473) (54,857,280)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares ................... 3,946,499,235 8,434,578,655
Net asset value of shares issued to shareholders
in reinvestment of dividends (Note 1e) ............. 24,772,438 54,856,838
--------------- ---------------
3,971,271,673 8,489,435,493
Cost of shares redeemed ............................ (4,256,477,421) (8,224,359,781)
--------------- ---------------
Net increase (decrease) in net assets derived from
beneficial interest transactions ................... (285,205,748) 265,075,712
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets ............ (285,057,966) 265,200,894
Beginning of period ................................ 2,270,863,726 2,005,662,832
--------------- ---------------
End of period ...................................... $ 1,985,805,760 $ 2,270,863,726
=============== ===============
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
- --------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
================================================================================
<TABLE>
<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,
September 30, -------------------------------------------------------
Increase (Decrease) in Net Asset Value: 1999 1999 1998 1997 1996
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Investment income--net ................... .01 .03 .03 .03 .03
Realized gain (loss) on investments--net . --+ --+ --+ --+ --+
---------- ---------- ---------- ---------- ----------
Total from investment operations ......... .01 .03 .03 .03 .03
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.01) (.03) (.03) (.03) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return .................. 2.46%* 2.68% 3.06% 2.90% 3.15%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses ................................. .58%* .58% .59% .60% .64%
========== ========== ========== ========== ==========
Investment income--net ................... 2.45%* 2.63% 3.00% 2.85% 3.11%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) . $1,985,806 $2,270,864 $2,005,663 $1,565,802 $1,421,140
========== ========== ========== ========== ==========
</TABLE>
* Annualized.
+ Amount is less than $.01 per share.
See Notes to Financial Statements.
12
<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 Fund's financial statements are prepared in accordance
with generally accepted accounting principles, which may require the use of
management accruals and estimates. These unaudited financial statements reflect
all adjustments, which are, in the opinion of management, necessary to a fair
statement of the results for the interim period presented. All such adjustments
are of a normal recurring nature. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--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 share- holders--The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax
withheld) in additional fund shares at net asset value. Dividends are declared
from the total of net investment income, excluding discounts earned other than
original issue discounts. Net realized capital gains, if any, are normally
distributed annually after deducting prior years' loss carryforward. The Fund
may distribute capital gains more frequently than annually in order to maintain
the Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee
based upon the average daily value of the Fund's net assets, at the following
annual rates: .50% of the first $500 million of average daily net assets; .425%
of average daily net assets in excess of $500 million but not exceeding $1
billion, and .375% of average daily net assets in excess of $1 billion.
Pursuant to the Distribution and Shareholder Servicing Plan in compliance with
Rule 12b-1 under the Investment Company Act of 1940,
13
<PAGE>
- --------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
================================================================================
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the annual rate of
.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.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares sold, reinvested and redeemed during the periods
corresponds to the amounts included in the Statements of Changes in Net Assets
for net proceeds from sale of shares, value of shares reinvested and cost of
shares redeemed, respectively, since shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 1999, the Fund had a net capital loss carryforward of approximately
$833,000, of which $315,000 expires in 2002, $476,000 expires in 2003 and
$42,000 expires in 2006. This amount will be available to offset a like amount
of any future taxable gains.
14
<PAGE>
- --------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES
================================================================================
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Steven T. Lewis--Vice President
Darrin J. SanFillippo--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Donald C. Burke--Vice President and
Treasurer
William E. Zitelli--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
* For inquiries regarding your CMA account, call (800) CMA-INFO [(800)
262-4636].
15
<PAGE>
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other Government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund. Past performance
results shown in this report should not be considered a representation of future
performance, which will fluctuate. Statements and other information herein are
as dated and are subject to change.
CMA California
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 #11211--9/99
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