CMA
CMA New Jersey
Municipal Money Fund
Semi-Annual Report
September 30, 1994
MERRILL LYNCH BULL LOGO
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
CMA New Jersey
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1994, CMA New Jersey
Municipal Money Fund paid shareholders a net annualized yield of
2.11%*. As of September 30, 1994, the Fund's 7-day yield was 2.66%.
The Environment
Concerns of increasing inflationary pressures continued to prompt
volatility in the US stock and bond markets during the July--
September period. In addition, the weakness of the US dollar in
foreign exchange markets caused intermittent stock and bond market
declines during the period. While the immediate concerns regarding
the US dollar had diminished by late July, the possibility of
continued tightening by the Federal Reserve Board persisted for most
of the period. However, a lower-than-expected rate of growth
reported for the US economy during the second calendar quarter
allayed inflationary concerns to some degree, despite the fifth
increase this year in short-term interest rates made by the central
bank in mid-August. Inflationary expectations surfaced again with
the announcement of significant upward revision in industrial
production and capacity utilization for the May--July period. When
the central bank did not raise short-term interest rates at the late
September Federal Open Market Committee meeting, financial markets
rallied on the expectation that the US economy was not overheating
and therefore significant further monetary policy tightening would
not be necessary.
Despite the stronger-than-expected industrial production results,
other economic data suggest that while the economic recovery is
continuing, it is losing some momentum. Consumer spending is
increasing, but at a relatively slow pace, and existing home sales
may have peaked. Inflation remains subdued at the retail level. In
the industrial sector, the sharp increase in manufacturing
production in August was largely the result of a strong increase in
motor vehicle assemblies, which may level off in the weeks ahead. On
balance, it appears that the growth in US industry is progressing at
a steady, modest rate.
Despite evidence of a moderating trend in the US economy, Chairman
Greenspan indicated in his July Humphrey-Hawkins testimony that the
central bank would prefer to err on the side of too much monetary
tightening rather than too little. In the weeks ahead, investors
will continue to assess economic data and inflationary trends in
order to gauge whether further increases in short-term interest
rates are imminent. Continued indications of moderate and
sustainable levels of economic growth would be positive for the US
capital markets.
Investment Outlook and Strategy
During the six-month period ended September 30, 1994, the US economy
continued to surprise the marketplace with its resiliency.
Manufacturing provided a strong catalyst for growth, and continued
strength in housing and automobile sales provided the impetus for
the Federal Reserve Board to continue the restrictive monetary
policy it initiated in February. This was accomplished by raising
the Federal Funds rate in April by 25 basis points (0.25%) to 3.75%.
More aggressive increases of 50 basis points followed in May and
August, pushing the Federal Funds rate to its current level of
4.75%. In addition, the Federal Reserve Board raised the discount
rate by 50 basis points in both May and August. The yield on the one-
year US Treasury bill rose approximately 155 basis points to 5.95%
by September 30, 1994.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Yields on short-term municipal securities were influenced by the
direction of interest rates in the US Government securities market,
although the rise in yields was not as dramatic as the rise in
interest rates. This can be attributed to the strong demand for
municipal securities by individuals, corporations and mutual funds.
In addition, an improving economy provided increased revenues to
many of the largest states, which then translated into a reduced
need for short-term borrowing and consequently reduced supply in the
marketplace. For example, total short-term issuance for the first
nine months of 1994 totaled $36.2 billion as compared to $42.8
billion for the corresponding period of 1993. During the same
period, assets of the tax-exempt money funds rose from $100.9
billion to $112.6 billion.
Late in the September period, New Jersey state officials announced a
projected $2.0 billion budget gap for the fiscal year beginning July
1, 1995. Governor Whitman will present her preliminary budget for
the upcoming fiscal year in January 1995. This announcement prompted
concerns among the three major rating agencies who intimated that
the State was in danger of being downgraded. Of concern was Governor
Whitman's need to replace revenues lost by the current and proposed
reduction in the State's income tax, the Supreme Court-mandated need
to equalize funding among poor and wealthy school districts, as well
as a potential downturn in the State's economy.
In September, the State announced its intention to enter the market
in the final quarter of the year with its annual Tax Revenue
Anticipation Note (TRAN) issuance. The State intends to sell
approximately $1.1 billion in TRANs with a final maturity of June
1995. This is a reduction from the previous year's issuance of $1.3
billion. The State's delay in entering the market after passing its
budget early this summer has forced New Jersey state-specific paper
to trade at a premium in the short-term market, particularly as
demand for these instruments was sustained. As a result of this
limited availability of New Jersey securities, coupled with a
Federal Reserve Board policy which was increasingly restrictive, we
maintained a conservative average portfolio maturity in the 60-day
range for most of the period. By the end of September, we reduced
our average portfolio maturity to the mid 40-day range in
anticipation of the State of New Jersey TRAN issuance. We will
maintain an average portfolio maturity in this range until a clearer
picture of Federal Reserve Board policy emerges and the State enters
the marketplace.
In Conclusion
We thank you for your support of CMA New Jersey Municipal Money
Fund, and we look forward to serving your investment needs in the
future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
October 28, 1994
Portfolio Abbreviations for CMA New Jersey Municipal Money Fund
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
EDA Economic Development Authority
GO General Obligation Bonds
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey-- $ 3,800 Atlantic County, New Jersey, Improvement Authority Revenue Bonds (Pooled
94.4% Government Loan Program), VRDN, 3.65% due 7/01/2026 (a) $ 3,800
1,400 Burlington Township, New Jersey, BAN, 4.25% due 6/30/1995 1,406
10,750 Cape May County, New Jersey, Municipal Utilities Authority, Solid Waste
Resource Recovery Revenue Bonds (Daneco Project), AMT, 2.80% due
11/30/1994 10,750
940 Chatham Borough, New Jersey, BAN, 3.39% due 12/13/1994 941
19,600 Eagle Tax Exempt Trust, VRDN, Series 94C 3001, 3.77% due 10/01/2015 (a) 19,600
5,200 Elizabeth, New Jersey, BAN, 4.54% due 7/18/1995 5,205
Essex County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan Program), VRDN (a):
9,000 3.65% due 12/01/1998 9,000
11,650 3.65% due 7/01/2026 11,650
13,260 Floating Rate Trust Certificates, Series 1994 D, 3.50% due 10/21/1994 13,260
9,000 Galloway Township, New Jersey, BAN, 4.25% due 7/12/1995 9,023
Hudson County, New Jersey:
8,000 BAN, 3.26% due 10/12/1994 8,001
17,000 TAN, 4.17% due 2/17/1995 17,014
9,410 Hudson County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
4% due 7/15/2026 (a) 9,410
2,000 Lindenwold, New Jersey, TAN, 4.50% due 1/17/1995 2,005
6,000 Mercer County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
3.65% due 11/01/1998 (a) 6,000
20,000 Mercer County, New Jersey, TAN, 4.375% due 4/12/1995 20,093
25,100 Monmouth County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan Program), ACES, VRDN, 3.65% due 8/01/2016 (a) 25,100
4,500 Morris Township, New Jersey, TAN, 3.375% due 11/21/1994 4,502
4,300 Morristown, New Jersey, BAN, 4.50% due 5/25/1995 4,322
1,000 New Jersey, EDA, Dock Facilities Revenue Refunding Bonds (Bayonne
IMTT Project), VRDN, Series A, 3.60% due 12/01/2027 (a) 1,000
New Jersey EDA, Economic Development Revenue Bonds, VRDN (a):
1,200 (400 International Drive Partners), 3.70% due 9/01/2005 1,200
9,725 (Benedictine Abbey of Newark), 3.75% due 12/01/2019 9,725
1,800 (Branch/Jersey Avenue Project), 3.40% due 5/01/2011 1,800
7,800 (Center for Aging, Applewood Estates Project), 3.75% due 12/01/2019 7,800
1,500 (Church & Dwight Co.), 3.55% due 12/01/2008 1,500
5,000 (Epitaxx, Inc. Project), AMT, 3.80% due 8/01/2016 5,000
1,250 (Holt Hauling & Warehouse I), AMT, 4% due 11/01/2023 1,250
1,850 (Office Courthouse Association Project), AMT, 3.70% due 4/01/2011 1,850
2,500 (RJB Association Project), 3.60% due 8/01/2008 2,500
</TABLE?
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey New Jersey EDA, Industrial and Economic Development Revenue Bonds, VRDN (a):
(concluded) $ 2,675 (East Meadow Corp.), Series A, 3.75% due 12/01/2006 $ 2,675
4,770 (East Meadow Corp.), Series B, 3.75% due 12/01/2006 4,770
1,300 (Elizabeth Realty Urban Renewal Associations-1986 Project), AMT, 4.45%
due 6/01/2000 1,300
3,200 (Marriott Corp. Project), 3.45% due 10/01/2014 3,200
4,100 (Seton Company Project), 3.40% due 9/01/2005 4,100
5,600 (Toys 'R' Us, Inc. Project), 3.55% due 4/01/2019 5,600
7,450 New Jersey EDA, PCR (Merck & Co.), VRDN, Series A, 3.80% due 10/01/2004 (a) 7,450
New Jersey EDA Revenue Bonds, CP, AMT:
4,500 (Chambers Cogeneration Project), 3.05% due 10/17/1994 4,500
8,000 (Chambers Cogeneration Project), 3.05% due 10/24/1994 8,000
1,000 (Keystone Project), 3.05% due 10/21/1994 1,000
New Jersey EDA Revenue Bonds, VRDN (a):
6,300 (Hoffman-La Roche Inc. Project), AMT, 3.75% due 11/01/2011 6,300
2,000 (Peddie School Project), Series B, 3.60% due 2/01/2019 2,000
2,150 Series H, AMT, 3.60% due 8/01/2004 2,150
1,625 Series I, AMT, 3.60% due 8/01/2014 1,625
New Jersey Health Care Facilities Finance Authority Revenue Bonds
(Hospital Capital Asset Program), VRDN (a):
2,200 Series A, 3.60% due 7/01/2035 2,200
3,000 Series B, 3.60% due 7/01/2035 3,000
5,000 Series C, 3.60% due 7/01/2035 5,000
3,800 Series D, 3.60% due 7/01/2035 3,800
37,300 New Jersey Sports and Exposition Authority, State Contract Revenue
Bonds, VRDN, Series C, 3.50% due 9/01/2024 (a) 37,300
2,500 New Jersey State, GO, 7% due 4/01/1995 (b) 2,539
15,600 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds,
VRDN, Series D, 3.45% due 1/01/2018 (a) 15,600
2,800 North Brunswick Township, New Jersey, Fiscal Year Adjustment Notes,
3.75% due 2/09/1995 2,803
1,750 North Brunswick Township, New Jersey, TAN, 4% due 12/01/1994 1,752
4,405 Paramus, New Jersey, BAN, 3.82% due 7/05/1995 4,405
1,020 Parsippany-Troy Hills Township, New Jersey, 4.60% due 12/01/1994 1,024
6,000 Passaic County, New Jersey, BAN, 4.50% due 7/06/1995 6,030
2,630 Port Authority of New York and New Jersey, CP, 3.05% due 10/21/1994 2,630
14,200 Port Authority of New York and New Jersey, Special Obligation Revenue Bonds
(Versatile Structure Obligation), VRDN, Series 1, 3.65% due 8/01/2028 (a) 14,200
Rutgers State University of New Jersey:
1,000 Series 1, 7.625% due 5/01/1995 (c) 1,043
1,355 Series A, 6.60% due 5/01/1995 (b) 1,379
Salem County, New Jersey, Industrial Pollution Control Financing Authority
Revenue Bonds, Series A:
7,300 (du Pont (E.I.) de Nemours), VRDN, 3.15% due 3/01/2012 (a) 7,300
3,200 (Philadelphia Electric), CP, 3% due 10/20/1994 3,200
1,040 Sussex County, New Jersey, BAN, 3.375% due 12/22/1994 1,042
Union County, New Jersey, Industrial Pollution Control Financing Authority,
Refunding Bonds, CP, PCR (Exxon Project):
1,400 2.80% due 10/11/1994 1,400
6,000 2.90% due 11/07/1994 5,998
11,000 VRDN, 3.70% due 10/05/1994 (a) 11,000
3,600 VRDN, 3.20% due 10/11/1994 (a) 3,600
6,400 Wall Township, New Jersey, TAN, 3.95% due 10/27/1994 6,403
1,738 Woodcliff Lake, New Jersey, BAN, 3.53% due 11/15/1994 1,737
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Puerto Rico-- Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities,
8.5% Financing Authority Revenue Bonds:
$ 3,300 (Anna G. Mendez Educational Project), CP, 3% due 10/20/1994 $ 3,300
4,965 (Key Pharmaceuticals), VRDN, Series A, 2.80% due 12/01/1994 (a) 4,967
2,040 (Merck & Co. Inc. Project), VRDN, Series A, 2.70% due 12/01/1994 (a) 2,040
2,800 (Reynolds Metals Co. Project), VRDN, 4% due 9/01/1995 (a) 2,800
9,600 Puerto Rico Industrial, Tourist Educational, Medical and Environmental, Control
Facilities Financing Authority Revenue Bonds, CP (Inter-American University),
Series A, 2.75% due 10/19/1994 9,600
Puerto Rico Maritime Shipping Authority, CP:
12,700 2.95% due 10/06/1994 12,700
500 2.85% due 10/13/1994 500
1,500 3.05% due 11/08/1994 1,500
Total Investments (Cost--$453,169*)--102.9% 453,169
Liabilities in Excess of Other Assets--(2.9%) (12,833)
--------
Net Assets--100.0% $440,336
========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rates shown are the rates in effect at
September 30, 1994.
(b)Escrowed to maturity.
(c)Prerefunded.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1994
<CAPTION>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$453,168,749) (Note 1a) $ 453,168,749
Cash. 30,464,797
Receivables:
Interest $ 2,646,170
Securities sold 73,500
Beneficial interest sold 70,714 2,790,384
--------------
Deferred organization expenses (Note 1d) 11,771
Prepaid registration fees and other assets (Note 1d) 1,391
--------------
Total assets 486,437,092
--------------
Liabilities:
Payables:
Securities purchased 45,777,196
Investment adviser (Note 2) 184,677
Distributor (Note 2) 109,661 46,071,534
--------------
Accrued expenses and other liabilities 29,429
--------------
Total liabilities 46,100,963
--------------
Net Assets $ 440,336,129
==============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 44,040,624
Paid-in capital in excess of par 396,365,616
Undistributed investment income--net 5,498
Accumulated realized capital losses--net (75,609)
--------------
Net Assets--Equivalent to $1.00 per share based on 440,406,241 shares of
beneficial interest outstanding $ 440,336,129
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1994
<CAPTION>
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 6,265,505
Expenses:
Investment advisory fees (Note 2) $ 1,111,301
Distribution fees (Note 2) 276,127
Transfer agent fees (Note 2) 44,749
Accounting services (Note 2) 26,845
Professional fees 23,775
Printing and shareholder reports 19,697
Registration fees (Note 1d) 18,696
Custodian fees 17,840
Amortization of organization expenses (Note 1d) 4,014
Pricing fees 3,558
Trustees' fees and expenses 2,717
Other 3,669
--------------
Total expenses 1,552,988
--------------
Investment income--net 4,712,517
Realized Loss on Investments--Net (Note 1c) (26,557)
--------------
Net Increase in Net Assets Resulting from Operations $ 4,685,960
==============
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
September 30, 1994 March 31, 1994
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net $ 4,712,517 $ 7,209,946
Realized loss on investments--net (26,557) (33,363)
-------------- --------------
Net increase in net assets resulting from operations 4,685,960 7,176,583
-------------- --------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (4,707,676) (7,205,111)
Realized gain on investments--net -- (42,440)
-------------- --------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (4,707,676) (7,247,551)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 707,330,171 1,451,838,155
Net asset value of shares issued to shareholders in reinvestment
of dividends (Note 1e) 4,707,812 7,227,727
-------------- --------------
712,037,983 1,459,065,882
Cost of shares redeemed (713,526,354) (1,406,051,737)
-------------- --------------
Net increase (decrease) in net assets derived from beneficial
interest transactions (1,488,371) 53,014,145
-------------- --------------
Net Assets:
Total increase (decrease) in net assets (1,510,087) 52,943,177
Beginning of period 441,846,216 388,903,039
-------------- --------------
End of period* $ 440,336,129 $ 441,846,216
============== ==============
<FN>
*Undistributed investment income--net $ 5,498 $ 657
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived July 30,
from information provided in the financial statements. For the Six 1990++ to
Months Ended For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: Sept. 30, 1994 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Investment income--net .01 .02 .02 .03 .03
--------- --------- --------- --------- ---------
Total from investment operations .01 .02 .02 .03 .03
--------- --------- --------- --------- ---------
Less dividends:
Investment income--net (.01) (.02) (.02) (.03) (.03)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 2.11%* 1.82% 2.21% 3.49% 4.95%*
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .57%* .58% .58% .62% .52%*
========= ========= ========= ========= =========
Expenses, net of reimbursement .70%* .70% .70% .74% .64%*
========= ========= ========= ========= =========
Expenses .70%* .70% .70% .74% .76%*
========= ========= ========= ========= =========
Investment income--net 2.12%* 1.80% 2.16% 3.42% 4.74%*
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 440,336 $ 441,846 $ 388,903 $ 350,058 $ 356,475
========= ========= ========= ========= =========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA New Jersey Municipal Money Fund (the "Fund") is part of CMA
Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a non-
diversified, open-end management investment company. The following
is a summary of significant accounting policies followed by the
Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a five-year period. Prepaid registration fees are
charged to expense as the related shares are issued.
(e) Dividends to shareholders--The Fund declares dividends daily and
reinvests daily such dividends (net of non-resident alien tax
withheld) in additional fund shares at net asset value. Dividends
are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net realized
capital gains, if any, are normally distributed annually after
deducting prior years' loss carryforward. The Fund may distribute
capital gains more frequently than annually in order to maintain the
Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co. ("ML & Co."). The limited partners
are ML & Co. and Fund Asset Management, Inc. ("FAMI"), which is also
an indirect wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets, at the following annual rates: 0.50%
of the first $500 million of average daily net assets; 0.425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1
billion.
The most restrictive annual expense limitation requires that the
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed in any fiscal year 2.5%
of the Fund's first $30 million of average daily net assets, 2.0% of
the Fund's next $70 million of average daily net assets, and 1.5% of
the average daily net assets in excess thereof. No fee payment will
be made to the Investment Adviser during any year which will cause
such expenses to exceed the pro rata expense limitation at the time
of such payment.
CMA NEW JERSEY MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the
annual rate of 0.125% of average daily net assets of the Fund. The
distribution fee is to compensate MLPF&S financial consultants and
other directly involved branch office personnel for selling shares
of the Fund and for providing direct personal services to
shareholders. The distribution fee is not compensation for the
administrative and operational services rendered to the Fund by
MLPF&S in processing share orders and administering shareholder
accounts.
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, FAMI, PSI, MLIM, MLPF&S, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased 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 and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
CMA NEW JERSEY
MUNICIPAL MONEY FUND
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
