[LOGO]CMA(R)
CMA CALIFORNIA
MUNICIPAL MONEY FUND [GRAPHIC OMITTED]
-------------------------------------
Semi-Annual Report
September 30, 2000
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[LOGO]Merrill Lynch
<PAGE>
TO OUR SHAREHOLDERS:
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For the six-month period ended September 30, 2000, CMA California Municipal
Money Fund paid shareholders a net annualized yield of 3.19%.* As of September
30, 2000, the Fund's 7-day yield was 3.49%.
Economic Environment
Since our last report to shareholders, the US economy has shown signs of slowing
to a more moderate and sustainable pace. The Federal Reserve Board, which met
three times during the period, chose to raise short-term interest rates only at
its May 16, 2000 meeting. The 50 basis point (0.50%) increase moved the Federal
Funds rate to its current level of 6.50%. Since the Federal Reserve Board
commenced the tightening cycle in June 1999, the Federal Funds rate has
increased 175 basis points. Inflation indicators remained in check with the
exception of energy prices. Unfavorable weather conditions during the upcoming
winter months could place more pressure on this sector. US financial markets
posted mixed results as fixed-income securities experienced some moderate gains,
while equity indexes declined. The intermediate range of the US Treasury yield
curve posted the strongest gains as investors became more comfortable with the
concept that the Federal Reserve Board's current tightening cycle may be
approaching an end. As a result, the yields on two-year and five-year notes fell
52 basis points and 48 basis points, respectively. The Dow Jones Industrial
Average and the NASDAQ Composite Index both ended the period lower as
disappointing corporate earnings and mounting profit warnings weighed heavily on
equity prices.
For the six-month period ended September 30, 2000, technical factors strongly
influenced short-term municipal yields as demand for short-term tax-exempt
securities varied. At the onset of the period, assets flowed out of short-term
municipal money funds because of income tax payments. By early May 2000, these
outflows pushed variable rate yields higher and the average 7-day variable yield
rose to a six-month high of 5.84%. However, by the middle of the period, assets
moved back into the shorter end of the municipal market in response to coupon
reinvestments and maturities. By early July 2000, these inflows decreased the
average yield on a 7-day variable rate to a period low of 3.21%. Finally, at the
end of the six-month period, short-term interest rates rose again as demand for
products in this sector subsided, forcing broker/dealers to raise yields in an
attempt to minimize inventories.
Investment Strategy
During the six-month period ended September 30, 2000, CMA California Municipal
Money Fund continued to employ a neutral investment strategy. We maintained the
Fund's average portfolio maturity primarily in the
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
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40-day-55-day range. Beginning in June and continuing through September,
approximately $4.0 billion in one-year California municipal notes were brought
to market. This amount reflects a 10% decrease when compared to the same period
in 1999. The state of California and many of its municipalities benefited from
the strong domestic economy and experienced a substantial increase in tax
revenues. The rise in revenues translated into reduced reliance by
municipalities on short-term debt to fund expenditures and subsequently
decreased California note issuance. We participated in several of the initial
offerings and purchased securities with yields ranging from 4.15% to 4.27%.
However, strong demand for California municipal notes lowered the yield on a
one-year security to a range of 3.70%-3.75% by period end. We continued to
maintain approximately 25% of the Fund's assets in the tax-exempt commercial
paper sector. These holdings provided the Fund with solid credit quality,
diversification and, most importantly, the flexibility to shorten or extend the
average portfolio maturity when appropriate. Finally, our investment strategy
continued to provide shareholders with an attractive yield compared with other
California municipal money funds with a similar investment objective.
Subject to market conditions, we anticipate in the months ahead that we will
continue to follow a neutral portfolio investment strategy. As year-end
approaches, we will seek opportunities to purchase commercial paper with
maturities into late February 2001-March 2001. These purchases would allow us to
secure attractive yields through the first quarter of 2001, which we believe
will be a period of high demand for short-term tax-exempt securities. Energy
prices may have a significant effect on the macroeconomic picture in the
upcoming six months as rising fuel prices could place further pressure on
corporate earnings and consumer spending.
In Conclusion
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/ Steven T. Lewis
Steven T. Lewis
Vice President and Portfolio Manager
November 1, 2000
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2000 (IN THOUSANDS)
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<TABLE>
<CAPTION>
Face
State Amount Issue Value
---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
California-- ABN Amro Munitops Certificates Trust, VRDN (a):
94.5% $ 6,500 Series 1998-17, 3.91% due 7/05/2006 (c) ................................. $ 6,500
5,373 Series 1999-7, 3.91% due 7/04/2007 (b) .................................. 5,373
12,000 Series 1999-8, 3.75% due 4/04/2007 (c) .................................. 12,000
California Educational Facilities Authority Revenue Bonds, VRDN (a):
6,500 (Life Chiropractic College), 3.75% due 1/01/2025 ........................ 6,500
4,000 (Pepperdine University), Series B, 4.35% due 11/01/2029 ................. 4,000
4,000 (San Francisco Conservatory), 4.50% due 3/01/2025 ....................... 4,000
California HFA, Home Mortgage Revenue Bonds, AMT:
10,000 Series S, 4.25% due 8/01/2001 (g) ....................................... 10,000
2,900 Series W, 3.90% due 10/01/2001 .......................................... 2,900
California HFA, M/F Housing Revenue Bonds, VRDN,
AMT, Series A (a):
14,865 4.85% due 2/01/2026 ..................................................... 14,865
10,000 4.85% due 2/01/2035 ..................................................... 10,000
1,000 California Infrastructure and Economic Development Bank Empowerment
Revenue Bonds (Gold Coast Baking Company Project), VRDN, AMT,
5.25% due 4/01/2012 (a) ..................................................... 1,000
5,600 California Pollution Control Financing Authority, Environmental Improvement
Revenue Bonds (Atlantic Richfield Co. Project), VRDN, AMT,
4.70% due 12/01/2032 (a) .................................................... 5,600
California Pollution Control Financing Authority, PCR, Refunding
(Pacific Gas and Electric), VRDN (a):
14,300 AMT, Series B, 5.15% due 11/01/2026 ..................................... 14,300
5,500 Series C, 5.05% due 11/01/2026 .......................................... 5,500
33,650 Series E, 5.00% due 11/01/2026 .......................................... 33,650
3,700 Series F, 5.20% due 11/01/2026 .......................................... 3,700
13,900 Series G, 5.10% due 2/01/2016 ........................................... 13,900
California Pollution Control Financing Authority, PCR, Refunding
(Southern California Edison Company), VRDN (a):
34,100 Series A, 5.05% due 2/28/2008 ........................................... 34,100
10,800 Series B, 5.05% due 2/28/2008 ........................................... 10,800
6,500 Series C, 5.05% due 2/28/2008 ........................................... 6,500
20,300 Series D, 5.05% due 2/28/2008 ........................................... 20,300
California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds, VRDN (a):
34,300 (Atlantic Richfield Co. Project), Series A, 5.15% due 12/01/2024 ........ 34,300
12,725 (Delano Project), AMT, 5.05% due 8/01/2019 .............................. 12,725
</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
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2000 (CONTINUED) (IN THOUSANDS)
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<TABLE>
<CAPTION>
Face
State Amount Issue Value
---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
California California Pollution Control Financing Authority, Solid Waste Disposal
(continued) Revenue Bonds, VRDN, AMT (a):
$ 3,120 (Edco Disposal Corp. Project), Series A, 4.70% due 10/01/2016 ........... $ 3,120
2,900 (Shell Martinez Refining), Series B, 5.10% due 10/01/2031 ............... 2,900
10,100 (Shell Oil Company--Martinez Project), Series A, 5.10% due 10/01/2024 ... 10,100
California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds, VRDN, AMT (Taormina Industries Inc. Project) (a):
4,965 4.40% due 8/01/2014 ..................................................... 4,965
9,300 Series A, 4.40% due 8/01/2016 ........................................... 9,300
16,385 Series B, 4.40% due 8/01/2014 ........................................... 16,385
75,000 California Public Capital Improvements, Financing Authority Revenue Bonds
(Pooled Project), Series D, 3.95% due 12/15/2000 ............................ 75,000
66,000 California School Cash Reserve Program Authority Revenue Bonds (Pooled),
Series A, 5.25% due 7/03/2001 (d) ........................................... 66,470
11,195 California School Facilities Financing Corporation, COP, Refunding (Capital
Improvement Financing Projects), VRDN, Series C, 4.60% due 7/01/2022 (a) .... 11,195
California State, CP:
22,000 4% due 10/06/2000 ....................................................... 22,000
4,600 3.60% due 10/12/2000 .................................................... 4,600
15,000 3.90% due 10/13/2000 .................................................... 15,000
20,000 3.65% due 11/09/2000 .................................................... 20,000
15,000 3.75% due 11/09/2000 .................................................... 15,000
20,000 3.90% due 11/09/2000 .................................................... 20,000
16,800 4% due 11/09/2000 ....................................................... 16,800
15,000 3.85% due 11/10/2000 .................................................... 15,000
15,000 4% due 11/10/2000 ....................................................... 15,000
11,500 3.60% due 11/20/2000 .................................................... 11,500
7,000 3.60% due 12/01/2000 .................................................... 7,000
5,000 3.70% due 12/08/2000 .................................................... 5,000
7,600 3.55% due 12/12/2000 .................................................... 7,600
25,000 3.80% due 12/20/2000 .................................................... 25,000
3,500 California State Economic Development Financing Authority, IDR
(Harvel Plastics Inc. Project), VRDN, AMT, 5.75% due 3/01/2010 (a) .......... 3,500
California State GO, MSTR, VRDN (a):
8,555 Series SGA-7, 5.03% due 9/01/2018 (e) ................................... 8,555
9,600 Series SGA-39, 5.03% due 6/01/2014 (b) .................................. 9,600
8,340 Series SGA-40, 5.03% due 6/01/2013 (c) .................................. 8,340
9,370 Series SGA-72, 5.03% due 6/01/2017 (c) .................................. 9,370
30,070 California Statewide Communities Development Authority, COP
(Continuing Care/University Project), VRDN, 5.20% due 11/15/2028 (a) ........ 30,070
California Statewide Communities Development Authority, M/F
Housing Revenue Bonds, VRDN, AMT (a):
10,000 (Canyon Creek Apartments), Series C, 4.95% due 6/15/2025 (f) ............ 10,000
3,660 (Greenback Manor Apartments), Series A, 4.45% due 2/01/2028 ............. 3,660
4,200 (Kimberly Woods), Series B, 4.95% due 6/15/2025 (f) ..................... 4,200
23,250 California Statewide Communities Development Authority Revenue Bonds,
TRAN, Series A, 5.25% due 6/29/2001 ......................................... 23,413
22,190 California Statewide Communities Development Authority, Solid Waste
Facilities Revenue Bonds (Chevron U.S.A. Inc. Project), VRDN, AMT,
5.10% due 12/15/2024 (a) .................................................... 22,190
32,000 California Transit Finance Authority Revenue Bonds, VRDN,
2.50% due 10/01/2027 (a)(e) ................................................. 32,000
</TABLE>
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2000 (CONTINUED) (IN THOUSANDS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face
State Amount Issue Value
---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
California Chula Vista, California, IDR, Refunding (San Diego Gas & Electric Co.),
(continued) VRDN (a):
$20,100 AMT, Series A, 5.10% due 3/01/2023 ...................................... $ 20,100
26,350 AMT, Series B, 5.25% due 12/01/2021 ..................................... 26,350
6,650 Series A, 5.05% due 7/01/2021 ........................................... 6,650
Chula Vista, California, IDR (San Diego Gas and Electric Company),
CP, AMT:
20,000 Series C, 3.70% due 12/06/2000 .......................................... 20,000
9,900 Series C, 3.70% due 12/07/2000 .......................................... 9,900
15,000 Series D, 3.80% due 12/08/2000 .......................................... 15,000
Clipper Tax-Exempt, COP, VRDN, AMT (a):
25,000 Series 98-9, 4.34% due 6/01/2002 ........................................ 25,000
6,768 Series 98-9, 4.34% due 7/12/2003 ........................................ 6,768
15,950 Series 98-9, 4.34% due 9/01/2004 ........................................ 15,950
29,000 Contra Costa, California, Water District, CP, Series A, 3.60% due 11/20/2000 29,000
15,525 Contra Costa, California, Water District Revenue Bonds, MSTR, VRDN,
Series SGA 24, 5% due 10/01/2019 (a)(b) ..................................... 15,525
5,800 Dublin, California, M/F Housing Authority Revenue Bonds (Park Sierra), VRDN,
AMT, Series A, 4.40% due 6/01/2028 (a) ...................................... 5,800
16,355 Eagle Tax-Exempt Trust, California, HFA, Mortgage Revenue Bonds, VRDN,
Series F-C7, 3.64% due 8/01/2023 (a) ........................................ 16,355
9,705 Eagle Tax-Exempt Trust, California State, VRDN, Series 97C-0501,
3.64% due 11/01/2020 (a) .................................................... 9,705
19,200 East Bay, California, Municipal Utility District, Wastewater Treatment
System Revenue Bonds, CP, 3.65% due 12/07/2000 .............................. 19,200
8,900 Elsinore Valley, California, Municipal Water District, COP, VRDN, Series A,
2.80% due 7/01/2029 (a)(c) .................................................. 8,900
6,390 Fontana, California, M/F Housing Revenue Bonds (Springtime Apartments
Project), VRDN, AMT, Series A, 4.45% due 12/01/2016 (a) ..................... 6,390
4,685 Fresno, California, Water System Revenue Refunding Bonds, MSTR, VRDN,
Series SGA 76, 5% due 6/01/2024 (a)(c) ...................................... 4,685
15,000 Fresno County, California, GO, TRAN, 5% due 7/02/2001 ....................... 15,083
6,620 Highland, California, Redevelopment Agency, M/F Housing Revenue Bonds
(Jeffrey Court Senior Apartments), VRDN, AMT, 4.45% due 3/01/2028 (a) ....... 6,620
14,900 Huntington Beach, California, GO, TRAN, 4.25% due 10/03/2000 ................ 14,901
2,155 Kern County, California, Superintendent of Schools, COP, VRDN, Series A,
4.50% due 12/01/2021 (a) .................................................... 2,155
19,430 Loma Linda, California, M/F Housing Revenue Bonds (Loma Linda Springs
Apartments), VRDN, AMT, 4.38% due 7/01/2019 (a) ............................. 19,430
19,000 Long Beach, California, GO, TRAN, 4.50% due 10/20/2000 ...................... 19,012
Long Beach, California, Harbor Revenue Bonds, CP, AMT, Series A:
27,400 3.20% due 12/06/2000 .................................................... 27,400
15,000 3.80% due 12/08/2000 .................................................... 15,000
3,000 Los Angeles, California, Department of Airports, Airport Municipal Trust
Revenue Bonds, FLOATS, Series SG 61, 4.60% due 5/15/2020 (a)(c) ............. 3,000
Los Angeles, California, Department of Water and Power, CP:
3,500 4% due 11/10/2000 ....................................................... 3,500
6,000 3.85% due 11/15/2000 .................................................... 6,000
15,000 3.60% due 11/20/2000 .................................................... 15,000
30,000 3.65% due 12/08/2000 .................................................... 30,000
Los Angeles, California, Department of Water and Power, Electric Plant
Revenue Refunding Bonds, MSTR, VRDN (a):
4,075 Series SGA 4, 5% due 11/15/2019 (c) ..................................... 4,075
4,005 Series SGA 6, 5% due 11/15/2019 (b) ..................................... 4,005
</TABLE>
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2000 (CONTINUED) (IN THOUSANDS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face
State Amount Issue Value
---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
California $ 5,000 Los Angeles, California, Harbor Department Revenue Bonds, FLOATS,
(continued) Series SG-59, 4.60% due 8/01/2026 (a)(b) .................................... $ 5,000
25,000 Los Angeles, California, M/F Housing Revenue Bonds, VRDN, Series K,
4.10% due 7/01/2010 (a) ..................................................... 25,000
23,990 Los Angeles, California, Unified School District, COP (Belmont Learning
Complex), VRDN, Series A, 4.35% due 12/01/2017 (a) .......................... 23,990
Los Angeles, California, Wastewater System Revenue Bonds, CP:
5,900 3.90% due 10/02/2000 .................................................... 5,900
6,875 3.80% due 11/13/2000 .................................................... 6,875
5,470 Los Angeles, California, Wastewater System Revenue Refunding Bonds,
Series A, 5% due 2/01/2001 (c) .............................................. 5,494
27,430 Los Angeles County, California, Capital Asset Leasing Corporation, Leasehold
Revenue Bonds, CP, 3.90% due 11/13/2000 ..................................... 27,430
33,035 Los Angeles County, California, GO, TRAN, Series A, 5% due 6/29/2001 ........ 33,237
5,700 Los Angeles County, California, Housing Authority, M/F Housing Revenue Bonds
(Park Sierra Project), VRDN, AMT, 4.85% due 12/01/2008 (a) .................. 5,700
Los Angeles County, California, Metropolitan Transportation Authority,
Revenue Refunding Bonds, MSTR, VRDN (a)(e):
78,975 Series SGB 1, 4.82% due 7/01/2025 ....................................... 78,975
40,850 Series SGB 2, 4.82% due 7/01/2021 ....................................... 40,850
Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Bonds, FLOATS (a):
6,000 Series SG-46, 4.52% due 7/01/2017 (d) ................................... 6,000
50,820 Series SG-55, 4.52% due 7/01/2018 (b) ................................... 50,820
Metropolitan Water District of Southern California, CP, Series B:
23,000 3.70% due 12/14/2000 .................................................... 23,000
14,000 4% due 12/14/2000 ....................................................... 14,000
Metropolitan Water District of Southern California, Waterworks Revenue
Refunding Bonds, VRDN (a):
13,500 Series B-1, 5% due 7/01/2035 ............................................ 13,500
14,900 Series B-4, 3.30% due 7/01/2035 ......................................... 14,900
7,435 Monrovia, California, Unified School District, GO, MSTR, VRDN, Series SGA 70,
5% due 8/01/2022 (a)(b) ..................................................... 7,435
36,090 Municipal Securities Trust Certificates, VRDN, Series 2000-95, Class A,
5.15% due 6/29/2001 (a) ..................................................... 36,090
Newport Beach, California, Revenue Bonds (Hoag Memorial Presbyterian
Hospital), VRDN (a):
12,500 Series A, 4.25% due 12/01/2029 .......................................... 12,500
25,000 Series B, 4.25% due 12/01/2029 .......................................... 25,000
15,000 Series C, 4.25% due 12/01/2029 .......................................... 15,000
5,000 Pittsburg, California, Mortgage Obligation Revenue Refunding Bonds, VRDN,
Series A, 5.50% due 12/30/2031 (a) .......................................... 5,000
13,570 Port Oakland, California, Port Revenue Bonds, MSTR, VRDN, Series SG 112,
4.60% 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, 4.45% due 8/01/2018 (a) ...................... 3,150
Sacramento, California, Municipal Utility District, Electric Revenue Bonds:
19,713 CP, 4% due 11/08/2000 ................................................... 19,713
5,760 MSTR, VRDN, Series SGB 4, 4.82% due 8/15/2021 (a)(d) .................... 5,760
9,400 Sacramento, California, Municipal Utility District, Electric Revenue
Refunding Bonds, MSTR, VRDN, Series SGA 5, 5% due 11/15/2006 (a)(e) ......... 9,400
10,000 San Bernardino County, California, COP, Refunding (Medical Center Financing
Project), VRDN, 4.35% due 8/01/2026 (a)(b) .................................. 10,000
</TABLE>
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2000 (CONTINUED) (IN THOUSANDS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face
State Amount Issue Value
---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
California $ 5,800 San Bernardino County, California, Residential Mortgage Revenue Refunding
(concluded) Bonds (Ramona Garden), VRDN, Series A, 4.50% due 2/01/2017 (a) .............. $ 5,800
7,000 San Diego, California, Sewer Revenue Bonds, FLOATS, Series SG 14,
4.52% due 5/15/2020 (a)(d) .................................................. 7,000
26,500 San Diego County, California, School District Tax and Revenue Anticipation
Note Program Note Participants, TRAN, Series C, 6% due 10/04/2001 ........... 27,009
11,400 San Francisco, California, Bay Area, CP, Series B, 3.70% due 12/06/2000 ..... 11,400
San Francisco, California, City and County Airport Commission, International
Airport Revenue Bonds (a):
3,645 FLOATS, Series SG-88, 4.52% due 5/01/2021 (c) ........................... 3,645
7,705 MSTR, VRDN, AMT, Series SGA-56, 5.03% due 5/01/2026 (b) ................. 7,705
28,005 MSTR, VRDN, Series SG-115, 4.60% due 5/01/2020 (c) ...................... 28,005
16,555 MSTR, VRDN, Series SG-116, 4.60% due 5/01/2026 (b) ...................... 16,555
13,000 San Jose, California, M/F Housing Revenue Bonds (Siena), VRDN,
4.95% due 12/01/2029 (a) .................................................... 13,000
2,000 San Jose-Santa Clara, California, Water Financing Authority, Sewer Revenue
Bonds, FLOATS, Series SG-49, 2.86% due 11/15/2020 (a)(c) .................... 2,000
6,800 Santa Clara, California, Electric Revenue Bonds, Series A,
4.23% due 7/01/2001 (b)(h) .................................................. 6,899
9,935 Santa Clara, California, Electric Revenue Refunding Bonds, MSTR, VRDN,
Series SGA-75, 5% due 7/01/2027 (a)(d) ...................................... 9,935
8,315 Santa Cruz County, California, Public Financing Authority Revenue Bonds,
MSTR, VRDN, Series SG-23, 4.52% 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, 4.10% due 6/01/2018 (a) ........................... 5,225
3,435 Shafter, California, IDA, IDR (Building Materials Manufacturing Corporation
Project), VRDN, AMT, 4.55% due 6/01/2029 (a) ................................ 3,435
3,550 Simi Valley, California, Community Redevelopment Agency, M/F Housing
Revenue Bonds (Ashlee Manor Project), VRDN, AMT, Series A,
4.45% due 10/01/2017 (a) .................................................... 3,550
12,000 Simi Valley, California, M/F Housing Revenue Bonds (Shadowridge Apartments),
VRDN, 4.95% due 9/01/2019 (a) ............................................... 12,000
15,000 Sonoma County, California, TRAN, 4% due 11/01/2000 .......................... 15,008
13,805 South Coast, California, Local Education Agencies, GO, TRAN,
5% due 7/03/2001 ............................................................ 13,883
6,765 Southern California Public Power Authority, Power Project Revenue Bonds,
MSTR, VRDN, Series SG-35, 4.52% due 7/01/2012 (a)(d) ........................ 6,765
9,900 Southern California Public Power Authority, Power Project Revenue Refunding
Bonds (Palo Verde Project), VRDN, Series B, 4.25% due 7/01/2009 (a)(d) ...... 9,900
44,500 Southern California Public Power Authority, Transmission Project Revenue
Refunding Bonds (Southern Transmission), VRDN, 4.25% due 7/01/2019 (a)(d) ... 44,500
University of California Revenue Bonds (Board of Regents), CP:
10,000 4% due 11/09/2000 ....................................................... 10,000
10,000 3.60% due 12/18/2000 .................................................... 10,000
7,000 Upland, California, Apartment Development Revenue Refunding Bonds
(Mountain Springs--Issue A), VRDN, 4.30% due 11/15/2028 (a)(f) .............. 7,000
30,000 Ventura County, California, GO, TRAN, Series A, 5% due 7/03/2001 ............ 30,175
7,500 Watereuse Finance Authority, California, Revenue Bonds, VRDN,
2.50% due 5/01/2028 (a)(e) .................................................. 7,500
20,045 West Basin, California, Municipal Water District Revenue Bonds, COP
(Phase III Recycled Water), VRDN, Series A, 2% due 8/01/2029 (a) ............ 20,045
</TABLE>
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CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2000 (CONCLUDED) (IN THOUSANDS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face
Amount Issue Value
---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank, CP:
5.0% $18,463 4.05% due 11/08/2000 ................................................... $ 18,463
20,820 4% due 11/14/2000 ...................................................... 20,820
8,000 4% due 12/06/2000 ...................................................... 8,000
4,000 3.90% due 2/23/2001 .................................................... 4,000
26,500 3.90% due 2/26/2001 .................................................... 26,500
8,000 Puerto Rico Commonwealth, Government Development Bank Revenue
Refunding Bonds, VRDN, 4.35% due 12/01/2015 (a)(b) ......................... 8,000
8,900 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Refunding Bonds, VRDN, Series A,
4.50% due 7/01/2028 (a)(d) 8,900
Puerto Rico Electric Power Authority, Power Revenue Bonds,
MSTR, VRDN (a)(b):
18,010 GO, Series SGA 43, 4.90% due 7/01/2022 ................................. 18,010
3,000 Series SGA 44, 4.90% due 7/01/2023 ..................................... 3,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (Cost--$2,288,041*)--99.5% ............................... 2,288,041
Other Assets Less Liabilities--0.5% ........................................ 11,328
----------
Net Assets--100.0% ......................................................... $2,299,369
==========
---------------------------------------------------------------------------------------------------------------------
</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, 2000.
(b) MBIA Insured.
(c) FGIC Insured.
(d) AMBAC Insured.
(e) FSA Insured.
(f) FNMA Collateralized.
(g) FHA Insured.
(h) Prerefunded.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
8
<PAGE>
--------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$2,288,041,477) .................. $ 2,288,041,477
Cash ..................................................................... 107,217
Receivables:
Interest ............................................................... $ 14,513,604
Securities sold ........................................................ 745,947 15,259,551
---------------
Prepaid registration fees and other assets ............................... 1,029,940
---------------
Total assets ............................................................. 2,304,438,185
---------------
Liabilities:
Payables:
Securities purchased ................................................... 2,708,756
Investment adviser ..................................................... 745,496
Distributor ............................................................ 576,933 4,031,185
---------------
Accrued expenses and other liabilities ................................... 1,038,152
---------------
Total liabilities ........................................................ 5,069,337
---------------
Net Assets ............................................................... $ 2,299,368,848
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized ........................................................ $ 230,009,643
Paid-in capital in excess of par ......................................... 2,070,085,133
Accumulated realized capital losses--net ................................. (725,928)
---------------
Net Assets--Equivalent to $1.00 per share based on 2,300,096,434 shares of
beneficial interest outstanding .......................................... $ 2,299,368,848
===============
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
--------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest and amortization of premium and discount earned $ 42,887,000
Expenses:
Investment advisory fees ............................... $ 4,699,530
Distribution fees ...................................... 1,418,734
Accounting services .................................... 158,326
Transfer agent fees .................................... 90,837
Custodian fees ......................................... 48,628
Professional fees ...................................... 26,723
Printing and shareholder reports ....................... 24,733
Registration fees ...................................... 13,031
Pricing fees ........................................... 8,022
Trustees' fees and expenses ............................ 5,716
Other .................................................. 17,416
------------
Total expenses ......................................... 6,511,696
------------
Investment income--net ................................. 36,375,304
Realized Loss on Investments--Net ...................... (196,728)
------------
Net Increase in Net Assets Resulting from Operations ... $ 36,178,576
============
</TABLE>
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: 2000 2000
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Investment income--net ............................................ $ 36,375,304 $ 53,469,586
Realized gain (loss) on investments--net .......................... (196,728) 303,766
--------------- ---------------
Net increase in net assets resulting from operations .............. 36,178,576 53,773,352
--------------- ---------------
Dividends to Shareholders:
Dividends to shareholders from investment income--net ............. (36,375,304) (53,469,586)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares .................................. 4,500,233,671 8,658,331,275
Value of shares issued to shareholders in reinvestment of dividends 36,376,302 53,469,216
--------------- ---------------
4,536,609,973 8,711,800,491
Cost of shares redeemed ........................................... (4,549,198,866) (8,670,813,514)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial
interest transactions ............................................. (12,588,893) 40,986,977
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets ........................... (12,785,621) 41,290,743
Beginning of period ............................................... 2,312,154,469 2,270,863,726
--------------- ---------------
End of period ..................................................... $ 2,299,368,848 $ 2,312,154,469
=============== ===============
</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 provided in the For the Six
financial statements. Months Ended For the Year Ended March 31,
September 30, -------------------------------------------------------
Increase (Decrease) in Net Asset Value: 2000 2000 1999 1998 1997
------------------------------------------------------------------------------------------------------------------------
<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 .03 .03 .03
Realized gain (loss) on investments--net . --+ --+ --+ --+ --+
---------- ---------- ---------- ---------- ----------
Total from investment operations ......... .02 .03 .03 .03 .03
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.02) (.03) (.03) (.03) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return .................. 3.19%* 2.59% 2.68% 3.06% 2.90%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses ................................. .57%* .58% .58% .59% .60%
========== ========== ========== ========== ==========
Investment income--net ................... 3.19%* 2.56% 2.63% 3.00% 2.85%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) . $2,299,369 $2,312,154 $2,270,864 $2,005,663 $1,565,802
========== ========== ========== ========== ==========
</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 conformity
with accounting principles generally accepted in the United States of America,
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 shareholders--The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax
withheld) in additional fund shares at net asset value. Dividends are declared
from the total of net investment income, excluding discounts earned other than
original issue discounts. Net realized capital gains, if any, are normally
distributed annually after deducting prior years' loss carryforward. The Fund
may distribute capital gains more frequently than annually in order to maintain
the Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). 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
13
<PAGE>
--------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
--------------------------------------------------------------------------------
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, 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, 2000, the Fund had a net capital loss carryforward of approximately
$529,000, of which $11,000 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
Roscoe S. Suddarth--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Edward D. Zinbarg--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
Phillip Gillespie--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--9/00
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