CMA [LOGO]
CMA CALIFORNIA
MUNICIPAL MONEY FUND [GRAPHIC OMITTED]
Annual Report
March 31, 2000
[LOGO] Merrill Lynch
<PAGE>
TO OUR SHAREHOLDERS:
For the year ended March 31, 2000, CMA California Municipal Money Fund paid
shareholders a net annualized yield of 2.59%.* As of March 31, 2000, the Fund's
7-day yield was 2.75%.
Economic Environment
During the six-month period ended March 31, 2000, US Treasury yields inverted
sharply as the spread between the two-year US Treasury note and the 30-year US
Treasury bond shifted from +43 basis points (0.43%) on October 1, 1999 to -30
basis points by March 31, 2000. Several factors contributed to this shift.
First, investors believed the long-term outlook for inflation improved when the
Federal Reserve Board aggressively raised short-term interest rates in an
attempt to slow the US economy. Since our last shareholder letter, the Federal
Reserve Board increased short-term interest rates by 75 basis points with the
Federal Funds target rate ending the six-month period at 6.00%. The domestic
economy has proven to be resilient, and we believe there is the possibility of
additional tightenings in the upcoming months. Second, large Federal Government
surpluses generated by the domestic economy drastically reduced the US
Government's reliance on debt issuance to fund expenditures, thereby reducing
supply. Lastly, the budget surplus also enabled the US Government to initiate an
extensive buyback of US Treasury debt that further lowered yields especially on
the long-end of the maturity curve.
Investment Strategy
We pursued a neutral investment strategy for the Fund through much of the
six-month period ended March 31, 2000 by maintaining an average portfolio
maturity in the 45-day-55-day range. Short-term municipal note yields moved
higher during the period as the Federal Reserve Board raised short-term interest
rates. The yield on one-year California municipal notes rose to the 3.60% area
by period-end from the 3.35% range at the beginning of October. We remained
active in the note market to maintain adequate diversification and continued to
focus on issues with shorter maturities in light of the current stance by the
Federal Reserve Board. Also, technical factors strongly influenced the variable
rate sector during the period. As 1999 year-end approached, Year 2000 and dealer
inventory concerns pushed variable rate yields to the 4.50%-4.75% range by late
December. After January 1, 2000, variable rate yields quickly reversed as
sizable assets flowed into tax-exempt money market funds. These inflows moved
California variable rate yields to the 1.00% range by mid-January.
We began the first quarter of 2000 with approximately 27% of the Fund's holdings
in the tax-exempt commercial paper sector. This sector allowed us to lock in
attractive yield levels for the Fund through March 2000 and helped to insulate
the Fund's yield as variable rate levels declined. The Fund experienced asset
inflows during the second half of the period that increased assets by 8% to
$2.31 billion by period-end. Finally, for the Fund's fiscal year ended March 31,
2000, our investment strategy focused on seeking to provide shareholders with a
portfolio of the highest credit quality, a stable net asset value and a
competitive yield. We achieved these goals, despite rapidly changing market
conditions, and provided shareholders with a yield better than the average for
all California tax-exempt money funds for the same period, as measured by IBC's
Money Fund Report.
In the coming months, we expect to continue to maintain our neutral portfolio
strategy for the Fund until it becomes clear that the Federal Reserve Board's
monetary policy will effectively slow the US economy. In the short-term
municipal market, late April and early May is historically a time of sizable
asset
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
<PAGE>
outflows because of Federal and state income tax payments. Similar to year-end,
these outflows are likely to move variable rate yields higher as dealers attempt
to minimize inventories. In addition, we expect an increase in note issuance
during the summer months as California municipalities look to satisfy their
short-term financing needs for the upcoming year.
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
May 1, 2000
================================================================================
We are pleased to announce that Steven T. Lewis is responsible for the
day-to-day management of CMA California Municipal Money Fund. Mr. Lewis has been
employed by Merrill Lynch Asset Management, L.P. since 1988.
================================================================================
2
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California-- ABN AMRO Munitops Certificates Trust, VRDN (a):
89.4% $ 6,500 Series 1998-17, 3.50% due 7/05/2006 (c) ........................... $ 6,500
5,373 Series 1999-7, 3.50% 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), 3.35% due 1/01/2025 .................. 6,500
4,000 (Pepperdine University), Series B, 3.30% due 11/01/2029 ........... 4,000
4,000 (San Francisco Conservatory), 3.20% due 3/01/2025 ................. 4,000
1,000 California Health Facilities Finance Authority,
Revenue Refunding Bonds (Sutter/Catholic Healthcare
System), VRDN, Series B, 3.45% due 7/01/2012 (a)(d) .................. 1,000
11,500 California M-S-R Public Power Agency, Revenue
Refunding Bonds (San Juan Project), Sub-Lien, VRDN,
Series F, 3.05% due 7/01/2022 (a)(b) ................................. 11,500
5,600 California Pollution Control Financing Authority,
Environmental Improvement Revenue Bonds (Atlantic),
VRDN, AMT, 3.35% due 12/01/2032 (a) .................................. 5,600
California Pollution Control Financing Authority,
PCR, Refunding (Pacific Gas and Electric), VRDN (a):
16,600 AMT, Series B, 3.40% due 11/01/2026 ............................... 16,600
14,500 AMT, Series C, 3.40% due 11/01/2026 ............................... 14,500
2,800 Series A, 3.35% due 12/01/2018 .................................... 2,800
12,500 Series C, 3.35% due 11/01/2026 .................................... 12,500
29,725 Series E, 2.75% due 11/01/2026 .................................... 29,725
6,800 Series F, 3.35% due 11/01/2026 .................................... 6,800
9,900 Series G, 3.40% due 2/01/2016 ..................................... 9,900
California Pollution Control Financing Authority,
PCR, Refunding (Shell Oil Company Project), VRDN (a):
1,500 Series A, 3.40% due 10/01/2008 .................................... 1,500
3,900 Series B, 3.40% due 10/01/2011 .................................... 3,900
2,000 Series C, 3.40% due 11/01/2000 .................................... 2,000
California Pollution Control Financing Authority,
PCR, Refunding (Southern California Edison), VRDN (a):
7,500 Series A, 3.50% due 2/28/2008 ..................................... 7,500
9,400 Series B, 3.50% due 2/28/2008 ..................................... 9,400
20,450 Series C, 3.50% due 2/28/2008 ..................................... 20,450
19,000 Series D, 3.50% due 2/28/2008 ..................................... 19,000
5,400 California Pollution Control Financing Authority,
PCR (Southern California Edison Company),
CP, Series A, 3.40% due 5/23/2000 .................................... 5,400
18,500 California Pollution Control Financing Authority,
Resource Recovery Revenue Bonds
(Atlantic Richfield Co. Project),
VRDN, Series A, 3.40% due 12/01/2024 (a) 18,500
California Pollution Control Financing Authority,
Resource Recovery Revenue Bonds (Delano Project), VRDN, AMT (a):
5,625 4% due 8/01/2019 .................................................. 5,625
800 4% due 8/01/2019 .................................................. 800
6,300 4% due 8/01/2019 .................................................. 6,300
</TABLE>
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
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (CONTINUED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California $ 3,255 California Pollution Control Financing Authority,
(continued) Solid Waste Disposal Revenue Bonds (Edco Disposal
Corp. Project), VRDN, AMT, Series A, 3.35%
due 10/01/2016 (a) ................................................... $ 3,255
California Pollution Control Financing Authority,
Solid Waste Disposal Revenue Bonds
(Shell Martinez Refining), VRDN, AMT (a):
32,300 Series A, 3.35% due 10/01/2031 .................................... 32,300
24,900 Series B, 3.35% due 10/01/2031 .................................... 24,900
California Pollution Control Financing Authority,
Solid Waste Disposal Revenue Bonds
(Shell Oil Company--Martinez Project), VRDN, AMT (a):
39,700 Series A, 3.35% due 10/01/2024 .................................... 39,700
17,500 Series B, 3.35% due 12/01/2024 .................................... 17,500
California Pollution Control Financing Authority,
Solid Waste Disposal Revenue Bonds
(Taormina Industries Inc. Project), VRDN, AMT (a):
4,965 Series 1994A, 3.20% due 8/01/2014 ................................. 4,965
9,300 Series 1996A, 3.20% due 8/01/2016 ................................. 9,300
16,385 Series 1994B, 3.20% due 8/01/2014 ................................. 16,385
75,000 California Public Capital Improvements Financing
Authority Revenue Bonds (Pooled Project),
Series D, 3.60% due 6/15/2000 ........................................ 75,000
20,000 California School Cash Reserve Program Authority
Revenue Bonds, Series A, 4% due 7/03/2000 (d) ........................ 20,028
11,800 California School Facilities Financing Corporation,
COP, Refunding (Capital Improvement Financing Projects),
VRDN, Series C, 3.30% due 7/01/2022 (a) .............................. 11,800
2,655 California State, CP, 3.55% due 4/12/2000 ............................ 2,655
California State Economic Development Financing Authority,
IDR, VRDN, AMT (a):
3,500 (Harvel Plastics Inc. Project), 4.05% due 3/01/2010 ............... 3,500
5,000 (Kuhnash Properties/Arkay Project), 3.80% due 4/01/2017 ........... 5,000
California State Economic Development Financing Authority
Revenue Bonds (California Independent System Operator
Corporation), VRDN (a):
41,000 Series A, 3.20% due 4/01/2008 ..................................... 41,000
9,500 Series D, 2.90% due 4/01/2008 ..................................... 9,500
California State, GO, MSTR, VRDN (a):
8,555 Series SGA 7, 3.53% due 9/01/2018 (e) ............................. 8,555
9,600 Series SGA 39, 3.53% due 6/01/2014 (b) ............................ 9,600
8,340 Series SGA 40, 3.53% due 6/01/2013 (c) ............................ 8,340
9,370 Series SGA 72, 3.53% due 6/01/2017 (c) ............................ 9,370
4,000 California State, GO, Refunding, 4.50% due 8/01/2000 ................. 4,011
48,200 California Statewide Communities Development Authority,
COP (Continuing Care/University Project),
VRDN, 3.35% due 11/15/2028 (a) ....................................... 48,200
California Statewide Communities Development Authority,
M/F Housing Revenue Bonds, VRDN, AMT (a):
10,000 (Canyon Creek Apartments), Series C, 3.20% due 6/15/2025 (f) ...... 10,000
3,660 (Greenback Manor Apartments), Series A, 3.25% due 2/01/2028 ....... 3,660
4,200 (Kimberly Woods), Series B, 3.20% due 6/15/2025 (f) ............... 4,200
12,990 California Statewide Communities Development Authority,
Solid Waste Facilities Revenue Bonds (Chevron U.S.A ..................
Inc. Project), VRDN, AMT, 3.40% due 12/15/2024 (a) ................... 12,990
77,000 California Transit Finance Authority Revenue Bonds,
VRDN, 3.25% due 10/01/2027 (a)(e) .................................... 77,000
</TABLE>
4
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (CONTINUED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California Chula Vista, California, IDR, Refunding
(continued) (San Diego Gas & Electric Co.), VRDN, AMT (a):
$20,100 Series A, 3.45% due 3/01/2023 ..................................... $20,100
19,500 Series B, 3.55% due 12/01/2021 .................................... 19,500
Chula Vista, California, IDR (San Diego Gas & Electric Company),
CP, AMT:
20,000 Series C, 3.35% due 4/05/2000 ..................................... 20,000
10,000 Series D, 3.50% due 6/01/2000 ..................................... 10,000
15,000 Series D, 3.45% due 6/12/2000 ..................................... 15,000
Clipper Tax-Exempt, COP, VRDN, AMT (a):
9,743 Series 98-9, 3.86% due 7/12/2003 .................................. 9,743
15,950 Series 98-9, 3.86% due 9/01/2004 .................................. 15,950
29,000 Contra Costa, California, Water District, CP,
Series A, 3.50% due 4/04/2000 ..................................... 29,000
15,525 Contra Costa, California, Water District Revenue Bonds,
MSTR, VRDN, Series SGA 24, 3.50% due 10/01/2019 (a)(b) ............... 15,525
9,630 Contra Costa County, California, GO, TRAN, Series A,
4% due 9/29/2000 ..................................................... 9,653
5,800 Dublin, California, M/F Housing Authority Revenue Bonds
(Park Sierra), VRDN, AMT, Series A, 3.30% due
6/01/2028 (a) ........................................................ 5,800
16,355 Eagle Tax-Exempt Trust, California, HFA, Mortgage
Revenue Bonds, VRDN, Series F-C7, 3.46% due
8/01/2023 (a)(b) ..................................................... 16,355
9,705 Eagle Tax-Exempt Trust, California State, VRDN,
Series 97C-0501, 3.46% due 11/01/2020 (a)(c) ......................... 9,705
East Bay, California, Municipal Utility District,
Wastewater Treatment System Revenue Bonds, CP:
4,000 3.35% due 4/05/2000 ............................................... 4,000
19,200 3.55% due 4/10/2000 ............................................... 19,200
14,600 3.55% due 4/11/2000 ............................................... 14,600
8,900 Elsinore Valley, California, Municipal Water District,
COP, VRDN, Series A, 3.20% due 7/01/2029 (a)(c) ...................... 8,900
6,390 Fontana, California, M/F Housing Revenue Bonds
(Springtime Apartments Project), VRDN, AMT, Series A,
3.40% due 12/01/2016 (a).............................................. 6,390
4,685 Fresno, California, Water System Revenue Refunding Bonds,
MSTR, VRDN, Series SGA 76, 3.50% due 6/01/2024 (a)(c) ................ 4,685
15,000 Fresno County, California, GO, TRAN, 4% due 6/30/2000 ................ 15,021
6,620 Highland, California, Redevelopment Agency,
M/F Housing Revenue Bonds (Jeffrey Court Senior
Apartments), VRDN, AMT, 3.25% due 3/01/2028 (a) ...................... 6,620
14,900 Huntington Beach, California, GO, TRAN, 4.25% due 10/03/2000 ......... 14,964
2,155 Kern County, California, Superintendent of Schools,
COP, VRDN, Series A, 3.25% due 12/01/2021 (a) ........................ 2,155
19,430 Loma Linda, California, M/F Housing Revenue Bonds
(Loma Linda Springs Apartments), VRDN, AMT,
3.35% due 7/01/2019 (a) .............................................. 19,430
19,000 Long Beach, California, GO, TRAN, 4.50% due 10/20/2000 ............... 19,112
Long Beach, California, Harbor Revenue Bonds, CP,
AMT, Series A:
27,400 3.35% due 4/05/2000 ............................................... 27,400
15,000 3.45% due 6/12/2000 ............................................... 15,000
3,000 Los Angeles, California, Department of Airports,
Airport Municipal Trust Revenue Bonds, FLOATS,
Series SG 61, 3.41% due 5/15/2020 (a)(c) ............................. 3,000
Los Angeles, California, Department of Water and Power, CP:
15,000 3.50% due 4/04/2000 ............................................... 15,000
43,000 3.50% due 4/05/2000 ............................................... 43,000
27,000 2.70% due 4/13/2000 ............................................... 27,000
</TABLE>
5
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (CONTINUED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California Los Angeles, California, Department of Water and Power,
(continued) Electric Plant Revenue Refunding Bonds, VRDN (a):
$ 4,075 MSTR, Series SGA 4, 3.50% due 11/15/2019 (c) ...................... $ 4,075
4,005 MSTR, Series SGA 6, 3.50% due 11/15/2019 (b) ...................... 4,005
25,000 Second Issue, Series E, 3.20% due 2/01/2010 ....................... 25,000
5,000 Los Angeles, California, Harbor Department Revenue Bonds,
FLOATS, Series SG-59, 3.41% due 8/01/2026 (a)(b) ..................... 5,000
14,990 Los Angeles, California, Unified School District,
COP (Belmont Learning Complex), VRDN, Series A,
3.20% due 12/01/2017 (a) ............................................. 14,990
7,045 Los Angeles, California, Unified School District,
GO, Series B, 4.25% due 7/01/2000 .................................... 7,058
5,900 Los Angeles, California, Wastewater System Revenue Bonds,
CP, 3.55% due 4/10/2000 .............................................. 5,900
5,470 Los Angeles, California, Wastewater System Revenue
Refunding Bonds, Series A, 5% due 2/01/2001 (c) ...................... 5,530
24,430 Los Angeles County, California, Capital Asset Leasing
Corporation, Leasehold Revenue Bonds, CP,
3.55% due 4/10/2000 .................................................. 24,430
107,030 Los Angeles County, California, GO, TRAN,
4% due 6/30/2000 ..................................................... 107,205
5,700 Los Angeles County, California, Housing Authority,
M/F Housing Revenue Bonds (Park Sierra Project),
VRDN, AMT, 3.20% due 12/01/2008 (a) .................................. 5,700
Los Angeles County, California, Metropolitan
Transportation Authority, Revenue Refunding Bonds,
MSTR, VRDN (a)(e):
78,675 Series SGB 1, 3.46% due 7/01/2025 ................................. 78,675
16,300 Series SGB 2, 3.46% due 7/01/2021 ................................. 16,300
Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue Bonds, FLOATS (a):
6,000 Series SG-46, 3.36% due 7/01/2017 (d) ............................. 6,000
50,820 Series SG-55, 3.36% due 7/01/2018 (b) ............................. 50,820
15,000 Los Angeles County, California, Schools Pooled Financing Program,
COP (Pooled Transit), Series B, 4% due 9/29/2000 (e).................. 15,015
Metropolitan Water District of Southern California, CP, Series B:
23,000 3.55% due 4/10/2000 ............................................... 23,000
14,000 3.45% due 6/01/2000 ............................................... 14,000
7,435 Monrovia, California, Unified School District,
GO, MSTR, VRDN, Series SGA 70, 3.50% due 8/01/2022 (a)(b) ............ 7,435
35,000 Municipal Securities Trust Certificates, GO,
Series 1999-78, Class A, 3.50% due 6/30/2000 ......................... 35,000
Newport Beach, California, Revenue Bonds
(Hoag Memorial Presbyterian Hospital), VRDN (a):
12,500 Series A, 3.15% due 12/01/2029 .................................... 12,500
15,000 Series C, 3.15% due 12/01/2029 .................................... 15,000
13,000 Oakland, California, GO, TRAN, 4.25% due 9/29/2000 ................... 13,054
12,250 Paramount, California, Unified School District,
GO, TRAN, 4.25% due 9/29/2000 ........................................ 12,296
5,000 Pittsburg, California, Mortgage Obligation Revenue
Refunding Bonds, VRDN, Series A, 3.90% due 12/30/2031 (a) ............ 5,000
13,570 Port Oakland, California, Port Revenue Bonds, MSTR,
VRDN, Series SG 112, 3.41% 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, 3.25% due 8/01/2018 (a) .................................... 3,150
Sacramento, California, Municipal Utility District,
Electric Revenue Bonds:
15,000 CP, 3.30% due 4/04/2000 ........................................... 15,000
5,760 MSTR, VRDN, Series SGB 4, 3.46% due 8/15/2021 (a)(d) .............. 5,760
9,400 Sacramento, California, Municipal Utility District,
Electric Revenue Refunding Bonds, MSTR, VRDN,
Series SGA 5, 3.50% due 11/15/2006 (a)(e) ............................. 9,400
</TABLE>
6
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (CONTINUED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California $10,000 San Bernardino County, California, COP, Refunding
(concluded) (Medical Center Financing Project),
VRDN, 3.15% due 8/01/2026 (a)(b) ................................. $ 10,000
5,800 San Bernardino County, California, Residential
Mortgage Revenue Refunding Bonds
(Ramona Garden), VRDN, Series A, 3.25% due 2/01/2017 (a) ......... 5,800
15,000 San Diego, California, Area Local Government, COP, TRAN,
Series B, 4% due 7/28/2000 ....................................... 15,024
12,970 San Diego, California, GO, TRAN, Series A,
4.25% due 9/29/2000 .............................................. 13,015
7,000 San Diego, California, Sewer Revenue Bonds,
FLOATS, Series SG 14, 3.36% due 5/15/2020 (a)(d) ................. 7,000
13,500 San Diego, California, Unified School District,
GO, TRAN, Series A, 4.25% due 9/29/2000 .......................... 13,548
11,400 San Francisco, California, Bay Area,
Rapid Transit District, CP, Series B,
3.30% due 4/05/2000 .............................................. 11,400
San Francisco, California, City and County
Airport Commission, International
Airport Revenue Bonds (a):
3,645 FLOATS, Series SG-88, 3.36% due 5/01/2021 (c) ................. 3,645
7,705 MSTR, VRDN, AMT, Series SGA 56, 3.53% due 5/01/2026 (b) ....... 7,705
28,005 MSTR, VRDN, Series SG 115, 3.41% due 5/01/2020 (c) ............ 28,005
16,555 MSTR, VRDN, Series SG 116, 3.41% due 5/01/2026 (b) ............ 16,555
13,000 San Jose, California, M/F Housing Revenue Bonds (Siena),
VRDN, 3.20% due 12/01/2029 (a) ................................... 13,000
2,000 San Jose-Santa Clara, California,
Water Financing Authority, Sewer Revenue Bonds,
FLOATS, Series SG-49, 3.36% due 11/15/2020 (a)(c) ................ 2,000
22,350 Santa Barbara County, California, GO, TRAN, Series A,
4.25% due 9/29/2000 .............................................. 22,430
9,935 Santa Clara, California, Electric Revenue Refunding Bonds,
MSTR, VRDN, Series SGA 75, 3.50% due 7/01/2027 (a)(d) ............ 9,935
8,315 Santa Cruz County, California, Public Financing
Authority Revenue Bonds, MSTR, VRDN,
Series SG-23, 3.36% due 9/01/2023 (a) ............................ 8,315
5,225 Santa Rosa, California, M/F Housing Revenue Bonds
(Oak Creek Apartments Project), VRDN, Series A,
3.25% due 6/01/2018 (a) .......................................... 5,225
3,500 Shafter, California, IDA, IDR
(Building Materials Manufacturing Corporation
Project), VRDN, AMT, 3.30% 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, 3.40% due 10/01/2017 (a) .................... 3,550
12,000 Simi Valley, California, M/F Housing Revenue Bonds
(Shadowridge Apartments), VRDN, 3.25% due 9/01/2019 (a) .......... 12,000
15,000 Sonoma County, California, TRAN, 4% due 11/01/2000 ............... 15,049
6,765 Southern California Public Power Authority,
Power Project Revenue Bonds, MSTR, VRDN,
Series SG 35, 3.36% due 7/01/2012 (a)(d) ......................... 6,765
15,000 Tulare County, California, GO, TRAN, 4.25% due 6/30/2000 ......... 15,033
University of California Revenue Bonds (Board of Regents), CP:
10,000 3.35% due 4/05/2000 ........................................... 10,000
10,000 3.20% due 5/11/2000 ........................................... 10,000
7,000 Upland, California, Apartment Development Revenue
Refunding Bonds (Mountain Springs--Issue A), VRDN,
3.15% due 11/15/2028 (a)(f) ...................................... 7,000
7,500 Watereuse Finance Authority, California, Revenue Bonds,
VRDN, 3.25% due 5/01/2028 (a)(e) ................................. 7,500
</TABLE>
7
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (CONTINUED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Puerto Rico-- $60,500 Puerto Rico Commonwealth, FLOATS, Series A-1,
9.7% 3.85% due 7/30/2000 (a)........................................... $ 60,500
5,200 Puerto Rico Commonwealth, Government Development Bank,
Revenue Refunding Bonds, VRDN, 3.15% due 12/01/2015 (a)(b)........ 5,200
Puerto Rico Commonwealth, Government Development Bonds, CP:
25,735 3.20% due 4/10/2000............................................ 25,735
6,366 3.55% due 4/12/2000............................................ 6,366
20,000 3.35% due 4/13/2000............................................ 20,000
11,500 2.95% due 4/18/2000............................................ 11,500
21,463 3.60% due 7/26/2000............................................ 21,463
4,094 3.65% due 8/10/2000............................................ 4,094
20,820 3.65% due 8/21/2000............................................ 20,820
22,300 3.60% due 8/24/2000............................................ 22,300
22,260 3.60% due 8/29/2000............................................ 22,260
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds,
GO, MSTR, VRDN, Series SGA 43, 3.45% due 7/01/2022 (a)(b)......... 3,000
- -----------------------------------------------------------------------------------------------------------
Total Investments (Cost--$2,290,300*)--99.1%...................... 2,290,300
Other Assets Less Liabilities--0.9%............................... 21,854
----------
Net Assets--100.0%................................................ $2,312,154
==========
- -----------------------------------------------------------------------------------------------------------
</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 March 31,
2000.
(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
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$2,290,299,717) ........ $ 2,290,299,717
Cash ........................................................... 170,536
Receivables:
Interest ...................................................... $ 19,751,898
Securities sold ............................................... 458,677 20,210,575
---------------
Prepaid registration fees and other assets ..................... 3,145,200
---------------
Total assets ................................................... 2,313,826,028
---------------
Liabilities:
Payables:
Investment adviser ............................................ 735,105
Distributor ................................................... 710,241
Dividends to shareholders ..................................... 1,053 1,446,399
---------------
Accrued expenses and other liabilities ......................... 225,160
---------------
Total liabilities .............................................. 1,671,559
---------------
Net Assets ..................................................... $ 2,312,154,469
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized .................................... $ 231,268,533
Paid-in capital in excess of par ............................... 2,081,415,136
Accumulated realized capital losses--net ....................... (529,200)
---------------
Net Assets--Equivalent to $1.00 per share based on 2,312,685,328
shares of beneficial interest outstanding ...................... $ 2,312,154,469
===============
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C>
Interest and amortization of premium and discount earned........ $ 65,496,762
Expenses:
Investment advisory fees ....................................... $ 8,704,241
Distribution fees .............................................. 2,586,619
Transfer agent fees ............................................ 211,907
Accounting services ............................................ 148,224
Custodian fees ................................................. 94,736
Registration fees .............................................. 88,929
Professional fees .............................................. 76,404
Printing and shareholder reports ............................... 63,029
Pricing fees ................................................... 17,550
Trustees' fees and expenses .................................... 13,364
Other .......................................................... 22,173
---------------
Total expenses ................................................. 12,027,176
---------------
Investment income--net ......................................... 53,469,586
Realized Gain on Investments--Net .............................. 303,766
---------------
Net Increase in Net Assets Resulting from Operations ........... $ 53,773,352
===============
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Year Ended March 31,
----------------------------------
Increase (Decrease) in Net Assets: 2000 1999
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Investment income--net ...................................................... $ 53,469,586 $ 54,857,280
Realized gain on investments--net ........................................... 303,766 125,182
--------------- ---------------
Net increase in net assets resulting from operations ........................ 53,773,352 54,982,462
--------------- ---------------
Dividends to Shareholders:
Dividends to shareholders from investment income--net ....................... (53,469,586) (54,857,280)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares ............................................ 8,658,331,275 8,434,578,655
Net asset value of shares issued to shareholders in
reinvestment of dividends.................................................. 53,469,216 54,856,838
--------------- ---------------
8,711,800,491 8,489,435,493
Cost of shares redeemed ..................................................... (8,670,813,514) (8,224,359,781)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions .... 40,986,977 265,075,712
--------------- ---------------
Net Assets:
Total increase in net assets ................................................ 41,290,743 265,200,894
Beginning of year ........................................................... 2,270,863,726 2,005,662,832
--------------- ---------------
End of year ................................................................. $ 2,312,154,469 $ 2,270,863,726
=============== ===============
</TABLE>
See Notes to Financial Statements.
CMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
The following per share data and ratios have been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
For the Year Ended March 31,
-----------------------------------------------------------------------------------
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Investment income--net ................... .03 .03 .03 .03 .03
Realized gain on investments--net ........ --+ --+ --+ --+ --+
------------ ------------ ------------ ------------ ------------
Total from investment operations ......... .03 .03 .03 .03 .03
------------ ------------ ------------ ------------ ------------
Less dividends from investment income--net (.03) (.03) (.03) (.03) (.03)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total Investment Return .................. 2.59% 2.68% 3.06% 2.90% 3.15%
============ ============ ============ ============ ============
Ratios to Average Net Assets:
Expenses ................................. .58% .58% .59% .60% .64%
============ ============ ============ ============ ============
Investment income--net ................... 2.56% 2.63% 3.00% 2.85% 3.11%
============ ============ ============ ============ ============
Supplemental Data:
Net assets, end of year (in thousands) ... $ 2,312,154 $ 2,270,864 $ 2,005,663 $ 1,565,802 $ 1,421,140
============ ============ ============ ============ ============
</TABLE>
+ Amount is less than $.01 per share.
See Notes to Financial Statements.
11
<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 accounting principles generally accepted in the United States of America,
which may require the use of management accruals and estimates. 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 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
12
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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 years 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.
13
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders, CMA California Municipal Money Fund of
CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of CMA California Municipal Money Fund of CMA
Multi-State Municipal Series Trust as of March 31, 2000, the related statements
of operations for the year then ended and changes in net assets for each of the
years in the two-year period then ended, and the financial highlights for each
of the years in the five-year period then ended. These financial statements and
the financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at March 31, 2000 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of CMA California
Municipal Money Fund of CMA Multi-State Municipal Series Trust as of March 31,
2000, the results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in accordance with
accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 4, 2000
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA California
Municipal Money Fund of CMA Multi-State Municipal Series Trust during its
taxable year ended March 31, 2000 qualify as tax-exempt interest dividends for
Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund during the
year.
Please retain this information for your records.
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].
<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--3/00
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