CMA
CMA NEW JERSEY
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1995
MERRILL LYNCH BULL LOGO
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
<PAGE>
CMA New Jersey
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1995, CMA New Jersey
Municipal Money Fund paid shareholders a net annualized yield of
3.17%*. As of September 30, 1995, the Fund's 7-day yield was 3.27%.
The Environment
After losing momentum through the second calendar quarter, it now
appears that the US economy has resumed a moderate growth trend.
Gross domestic product growth for the three months ended June 30 was
revised to show that the economy expanded at a 1.1% pace, rather
than the 0.5% rate that was originally reported. The employment
report for August exceeded consensus expectations, although most of
the new jobs created were in the service sector, reflecting the
ongoing sluggishness in manufacturing. However, durable goods orders
rebounded somewhat in August, supported by stronger automobile
sales. Reflecting the trend of renewed economic growth--and
continued containment of inflationary pressures--the Federal Reserve
Board signaled no shift in monetary policy following its September
meeting.
<PAGE>
One of the major developments during the latter part of the period
under review was the strengthening of the US dollar relative to the
yen and the Deutschemark. Improving interest rate differentials
favoring the US currency, combined with coordinated central bank
intervention and more positive investor sentiment, have helped to
bolster the dollar in foreign exchange markets. Other factors that
appear to be improving the US dollar's outlook in the near term are
a pick-up in capital flows to the United States and the prospect of
increased capital outflows from Japan. However, it remains to be
seen if the US dollar's strengthening trend can continue without
significant improvements in the US budget and trade deficits.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
Investment Outlook and Strategy
Short-term interest rates continued to fall relatively unabated
during the six-month period ended September 30, 1995 as they have
been since late 1994. A series of economic data releases indicated
that the severely restrictive monetary policy undertaken by the
Federal Reserve Board in 1994 had taken effect on the US economy in
the form of moderating growth. Additionally, the news on inflation
continued to be overwhelmingly favorable, which provided the
backdrop for a falling interest rate environment. Investors began to
anticipate that the Federal Reserve Board eventually would have to
begin cutting interest rates to avoid the possibility of a recession
in the United States. In fact, on July 6, 1995, the Federal Reserve
Board cut its key interest rate by 25 basis points (0.25%) to 5.75%,
confirming that an economic switch had occurred and signaling a
change in monetary policy from a restrictive stance to a more
neutral stance. This series of events provided the impetus for the
yield curve to flatten over the course of the six-month period ended
September 30, 1995. For instance, while yields on three-month US
Treasury bills fell approximately 45 basis points during the period,
the yield on one-year US Treasury bills dropped near-ly 95 basis
points during the same period.
<PAGE>
During the six-month period ended September 30, 1995, Governor
Whitman signed into law a $16 billion budget for fiscal-year 1996.
The budget includes a slight increase in aid to school districts as
well as local governments. Also included in the final bill was the
last installment of a 30% income tax rate cut as well as a mandate
to privatize the State Department of Motor Vehicles. The State's
economy has continued to expand but employment growth has not
increased at the same pace. The majority of growth has been achieved
through mergers and acquisitions which have not translated into
sustained job growth. The State's unemployment rate for August came
in at 6.6% versus a national level of 5.6%.
CMA New Jersey Municipal Money Fund maintained a relatively
defensive posture as the average portfolio maturity remained in the
30-day--35-day range for much of the period ended September 30,
1995. The short-term interest rate yield curve through one year
continued to be flat, making an extension of the Fund's average
portfolio maturity unattractive. In such an environment, yields on
shorter-term securities remain at or near those of longer-term
securities, so investors receive no yield premium as a reward for
extending their maturity risk. However, a steepening yield curve
developed toward the close of the September period which allowed us
to extend the Fund's average portfolio maturity to the mid 50-day
range by period-end. We expect to maintain this average portfolio
maturity as the strength of recent economic data has cast some doubt
as to the timing and magnitude of the Federal Reserve Board's next
move. The State is expected to enter the market in the fall to
satisfy its short-term cash needs.
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
<PAGE>
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Steven T. Lewis)
Steven T. Lewis
Portfolio Manager
November 1, 1995
We are pleased to announce that Steven T. Lewis is responsible for
the day-to-day management of CMA New Jersey Municipal Money Fund.
Mr. Lewis has been employed by Merrill Lynch Asset Management, L.P.
since 1988.
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
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey-- $ 3,800 Atlantic County, New Jersey, Improvement Authority Revenue Bonds (Pooled
92.1% Governmental Loan Program), ACES, 4.15% due 7/01/2026 (a) $ 3,800
Bayonne, New Jersey, UT:
7,000 BAN, 4.10% due 9/13/1996 7,013
7,040 Temporary Notes, 4.10% due 9/13/1996 7,053
4,104 Berkeley Township, New Jersey, BAN, 4.875% due 11/29/1995 4,109
6,365 Camden County, New Jersey, BAN, Series A, 5.25% due 2/14/1996 (g) 6,375
Eagle Tax Exempt Trust, VRDN, Series 94C-3001 (a):
16,400 4.44% due 10/01/2015 16,400
4,400 4.49% due 10/01/2015 4,400
Elizabeth, New Jersey, BAN, UT:
4,000 4.26% due 7/17/1996 4,004
5,000 4.34% due 7/17/1996 5,008
5,000 4.44% due 7/17/1996 5,012
Essex County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Governmental Loan Program), ACES (a):
8,000 4.10% due 12/01/1998 8,000
14,250 4.10% due 7/01/2026 14,250
13,260 Floating Rate Trust Certificates, VRDN, Series 1994--E, 4.50% due 7/02/1999 (a) 13,260
12,200 Hudson County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan Program), VRDN, 4.25% due 7/15/2026 (a) 12,200
14,000 Hunterdon County, New Jersey, BAN, 4.05% due 11/03/1995 14,000
14,700 Jersey City, New Jersey, BAN, 4.75% due 9/27/1996 14,799
5,700 Mercer County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
3.95% due 11/01/1998 (a) 5,700
Middle Township, New Jersey, BAN:
1,375 3.91% due 12/01/1995 1,376
2,374 3.91% due 2/01/1996 2,375
Middlesex County, New Jersey, Refunding Bonds:
4,755 Series A, 5.25% due 1/15/1996 4,780
4,500 UT, 3.60% due 7/15/1996 4,493
3,820 Middlesex County, New Jersey, Utilities Authority, Solid Waste System
Revenue Bonds, 5.20% due 12/01/1995 (e) 3,826
25,600 Monmouth County, New Jersey, Improvement Authority Revenue Bonds
(Pooled Government Loan Program), ACES, 4.10% due 8/01/2016 (a) 25,600
2,300 New Brunswick, New Jersey, BAN, 4.10% due 7/12/1996 (g) 2,303
</TABLE>
<PAGE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey New Jersey EDA, Dock Facility Revenue Refunding Bonds (Bayonne IMTT
(continued) Project), VRDN, Series A (a):
$ 2,700 4.70% due 12/01/2027 $ 2,700
7,500 4.70% due 12/01/2027 7,500
7,000 4.75% due 12/01/2027 7,000
New Jersey EDA, Economic Development Revenue Bonds, VRDN (a):
2,300 (400 International Drive Partners), 4.75% due 9/01/2005 2,300
725 (Astor Chocolate Corporation Project), AMT, 4.40% due 4/01/2002 725
9,625 (Benedictine Abbey of Newark), 4.25% due 12/01/2019 9,625
1,725 (Branch/Jersey Avenue Project), 4.20% due 5/01/2011 1,725
1,250 (Catholic Community Services), 4.20% due 6/01/2025 1,250
6,300 (Center for Aging, Applewood Estates Project), 4.30% due 12/01/2019 6,300
1,700 (Filtra Corporation Project), 4.40% due 8/01/2015 1,700
1,800 (Office Courthouse Association Project), AMT, 4.30% due 4/01/2011 1,800
2,000 (Park Lane Association Project), AMT, 4.40% due 4/01/2010 2,000
1,500 Refunding (Church & Dwight), 4.10% due 12/01/2008 1,500
2,420 Refunding (RJB Associates Project), 4.45% due 8/01/2008 2,420
1,375 (Saint Peter's Preparatory School), 4.30% due 1/01/2010 1,375
New Jersey EDA, Industrial and Economic Development
Revenue Bonds, VRDN (a):
1,100 (Elizabeth Realty Urban Renewal Association-1986 Project),
AMT, 5.05% due 6/01/2000 1,100
3,200 (Marriott Corp. Project), 4.15% due 10/01/2014 3,200
4,100 (Seton Company Project), 4.30% due 9/01/2005 4,100
5,400 (Toys `R' Us, Inc. Project), 4.20% due 4/01/2019 5,400
New Jersey EDA, Natural Gas Facilities Revenue Bonds,
(New Jersey Natural Gas Company Project), VRDN, AMT (a)(d):
700 Refunding, Series A, 4.30% due 8/01/2030 700
2,600 Series B, 4.20% due 8/01/2030 2,600
7,450 New Jersey EDA, PCR (Merck & Co.), VRDN, Series A, 4.65%
due 10/01/2004 (a) 7,450
9,000 New Jersey EDA, Port Facility Revenue Bonds (Trailer Marine Crowley),
VRDN, 3.75% due 2/01/2002 (a) 9,000
New Jersey EDA, Revenue Bonds:
1,500 (Akma, Inc.), VRDN, AMT, Series I, 4.25% due 8/01/2014 (a) 1,500
2,050 (Andy Boy), VRDN, AMT, Series H, 4.25% due 8/01/2004 (a) 2,050
9,000 (Chambers Cogeneration Project), CP, AMT, 3.75% due 10/06/1995 9,000
4,500 (Chambers Cogeneration Project), CP, AMT, 3.70% due 12/13/1995 4,500
1,305 (E.P. Henry Corp. Project), VRDN, 4.40% due 3/01/2005 (a) 1,305
11,500 (Hoffman-La Roche Inc. Project), VRDN, AMT, 4.50% due 11/01/2011 (a) 11,500
3,000 (Keystone Project), CP, 3.75% due 10/06/1995 3,000
2,000 (Peddie School Project), Series B, VRDN, 4.45% due 2/01/2019 (a) 2,000
1,500 New Jersey Sports and Exposition Authority, Sports Complex Revenue
Refunding Bonds, 7.60% due 1/01/1996 (b) 1,513
20,600 New Jersey Sports and Exposition Authority, State Contract Revenue
Bonds, VRDN, Series C, 4.15% due 9/01/2024 (a)(f) 20,600
5,000 New Jersey State Refunding Bonds, UT, Series D, 4.20% due 2/15/1996 5,009
11,600 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds,
VRDN, Series D, 4.05% due 1/01/2018 (a)(e) 11,600
2,500 Ocean County, New Jersey, Utilities Authority, Wastewater Revenue
Refunding Bonds, 8.70% due 1/01/1996 (c)(e) 2,577
3,265 Passaic Valley, New Jersey, Sewage Commissioners Revenue Refunding
Bonds (Sewer Systems), Series D, 5.70% due 12/01/1995 (d) 3,276
</TABLE>
<PAGE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey Port Authority of New York and New Jersey, CP:
(concluded) $ 5,920 3.80% due 10/02/1995 $ 5,920
5,215 3.65% due 10/13/1995 5,215
7,020 3.60% due 11/07/1995 7,020
1,715 3.75% due 11/07/1995 1,715
13,130 3.80% due 11/17/1995 13,130
10,710 3.80% due 12/13/1995 10,710
3,120 3.70% due 12/15/1995 3,120
Port Authority of New York and New Jersey, Special Obligation Revenue
Bonds (Versatile Structure Obligation), VRDN (a):
53,200 AMT, Series 1, 4.35% due 8/01/2028 53,200
3,900 Series 2, 4.65% due 5/01/2019 3,900
Salem County, New Jersey, Industrial Pollution Control Financing
Authority Revenue Bonds:
7,300 (du Pont (E.I.) de Nemours), VRDN, Series A, 3.90% due 3/01/2012 (a) 7,300
3,200 (Philadelphia Electric), CP, Series A, 3.70% due 12/13/1995 3,200
4,050 Scotch Plains Township, New Jersey, BAN, Series A, 4.25% due 4/04/1996 (g) 4,062
1,760 Somerset County, New Jersey, GO, UT, 5.875% due 12/01/1995 1,763
3,400 South Plainfield, New Jersey, BAN, UT, 3.95% due 7/26/1996 3,400
Union County, New Jersey, Industrial Pollution Control Financing Authority,
PCR, Refunding, VRDN:
2,200 (Allied Signal Project), 4.05% due 12/01/2020 (a) 2,200
3,000 (Exxon Project), AMT, 4.20% due 10/01/2024 (a) 3,000
15,500 (Exxon Project), 4.75% due 7/01/2033 (a) 15,500
3,197 West Orange, New Jersey, BAN, 4.375% due 3/06/1996 3,204
<PAGE>
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank
8.6% Revenue Bonds, CP:
20,700 3.70% due 12/12/1995 20,700
11,000 3.70% due 12/13/1995 11,000
3,600 Refunding, VRDN, 3.80% due 12/01/2015 (a) 3,600
2,800 Puerto Rico Commonwealth, Highway and Transportation Authority, Highway
Revenue Bonds, VRDN, Series X, 3.80% due 7/01/1999 (a) 2,800
5,600 Puerto Rico Industrial, Educational, Medical and Environmental Control
Facilities Financing Authority, CP, Series A, 3.60% due 11/07/1995 5,600
3,300 Puerto Rico Industrial, Medical and Environmental Pollution Control
Facilities Financing Authority Revenue Bonds, CP, Series A, 3.60% due
11/07/1995 3,300
Total Investments (Cost--$547,595*)-- 100.7% 547,595
Liabilities in Excess of Other Assets--(0.7%) (3,909)
----------
Net Assets--100.0% $ 543,686
==========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
September 30, 1995.
(b)Escrowed to maturity.
(c)Prerefunded.
(d)AMBAC Insured.
(e)FGIC Insured.
(f)MBIAInsured.
(g)Bank Qualified.
*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, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$547,595,207) (Note 1a) $ 547,595,207
Cash 10,146,612
Receivables:
Interest $ 2,848,770
Beneficial interest sold 439,173
Securities sold 151 3,288,094
---------------
Deferred organization expenses (Note 1d) 2,912
Prepaid registration fees and other assets (Note 1d) 13,699
---------------
Total assets 561,046,524
---------------
<PAGE>
Liabilities:
Payables:
Securities purchased 16,926,584
Investment adviser (Note 2) 213,685
Distributor (Note 2) 133,539 17,273,808
---------------
Accrued expenses and other liabilities 86,845
---------------
Total liabilities 17,360,653
---------------
Net Assets $ 543,685,871
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 54,376,258
Paid-in capital in excess of par 489,386,317
Accumulated realized capital losses--net (Note 4) (76,704)
---------------
Net Assets--Equivalent to $1.00 per share based on 543,762,575 shares of
beneficial interest outstanding $ 543,685,871
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 10,205,146
Expenses:
Investment advisory fees (Note 2) $ 1,318,060
Distribution fees (Note 2) 331,781
Transfer agent fees (Note 2) 63,529
Professional fees 31,834
Accounting services (Note 2) 31,421
Registration fees (Note 1d) 25,522
Printing and shareholder reports 21,716
Custodian fees 20,412
Pricing fees 4,933
Trustees' fees and expenses 2,890
Amortization of organization expenses (Note 1d) 1,446
Other 4,923
---------------
Total expenses 1,858,467
---------------
<PAGE>
Investment income--net 8,346,679
Realized Loss on Investments--Net (Note 1c) (4,492)
---------------
Net Increase in Net Assets Resulting from Operations $ 8,342,187
===============
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the For the
Six Months Ended Year Ended
Increase (Decrease) in Net Assets: September 30, 1995 March 31, 1995
<S> <C> <C>
Operations:
Investment income--net $ 8,346,679 $ 11,557,524
Realized loss on investments--net (4,492) (30,343)
--------------- ---------------
Net increase in net assets resulting from operations 8,342,187 11,527,181
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (8,347,010) (11,550,666)
--------------- ---------------
Net decrease in net assets resulting from dividends
to shareholders (8,347,010) (11,550,666)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 887,396,798 1,629,827,901
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 8,346,719 11,550,723
--------------- ---------------
895,743,517 1,641,378,624
Cost of shares redeemed (877,800,029) (1,557,454,149)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 17,943,488 83,924,475
--------------- ---------------
Net Assets:
Total increase in net assets 17,938,665 83,900,990
Beginning of period 525,747,206 441,846,216
--------------- ---------------
End of period $ 543,685,871 $ 525,747,206
=============== ===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Six
Months Ended For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: Sept. 30, 1995 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Investment income--net .02 .02 .02 .02 .03
--------- --------- --------- --------- ---------
Total from investment operations .02 .02 .02 .02 .03
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.02) (.02) (.02) (.02) (.03)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 3.17%* 2.52% 1.82% 2.21% 3.49%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, excluding distribution fees .57%* .59% .58% .58% .62%
========= ========= ========= ========= =========
Expenses .70%* .71% .70% .70% .74%
========= ========= ========= ========= =========
Investment income--net 3.14%* 2.51% 1.80% 2.16% 3.42%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 543,686 $ 525,747 $ 441,846 $ 388,903 $ 350,058
========= ========= ========= ========= =========
<FN>
*Annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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. 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) 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 and distributions to shareholders--The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax withheld) in additional fund shares at net asset
value. Dividends are declared from the total of net investment
income, excluding discounts earned other than original issue
discounts. Net realized capital gains, if any, are normally
distributed annually after deducting prior years' loss carryforward.
The Fund may distribute capital gains more frequently than annually
in order to maintain the Fund's net asset value at $1.00 per share.
<PAGE>
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM" or "Adviser"). The general partner of
FAM is Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is also
the limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets, at the following annual rates: 0.50%
of the first $500 million of average daily net assets; 0.425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1
billion.
CMA NEW JERSEY MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
The most restrictive annual expense limitation requires that the
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed in any fiscal year 2.5%
of the Fund's first $30 million of average daily net assets, 2.0% of
the Fund's next $70 million of average daily net assets, and 1.5% of
the average daily net assets in excess thereof. No fee payment will
be made to the Adviser during any year which will cause such
expenses to exceed the pro rata expense limitation at the time of
such payment.
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.
<PAGE>
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLPF&S, MLFDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
4. Capital Loss Carryforward:
At March 31, 1995, the Fund had a net capital loss carryforward of
approximately $72,000, all of which expires in 2003. This amount
will be available to offset like amounts of any future taxable
gains.
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
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Transfer Agent
Merrill Lynch 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].
