CMA
CMA New Jersey
Municipal Money Fund
Semi-Annual Report
September 30, 1998
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. 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. Statements and other information herein are as dated and are
subject to change.
CMA New Jersey
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1998, CMA New Jersey
Municipal Money Fund paid shareholders a net annualized yield of
2.91%.* As of September 30, 1998, the Fund's 7-day yield was 3.14%.
Economic Environment
During the six-month period ended September 30, 1998, the economic
instability previously limited to Asia spread to several other
regions, including Russia and Latin America. Problems in our own
domestic economy also became more apparent, with declining consumer
confidence and diminishing corporate profits. US equity markets were
hard hit as the Dow Jones Industrial Average fell by 10.9% and the
broader unmanaged Standard & Poor's 500 Index fell by 7.7% for the
six-month period ended September 30, 1998. In an effort to prevent
the US economy from slipping into a possible recession, the Federal
Reserve Board lowered the Federal Funds target rate by 25 basis
points (0.25%) to 5.25% at its September 29, 1998 meeting. This
easing was the first by the Federal Reserve Board since January
1996. The central bank unexpectedly cut the Federal Funds rate
another quarter point in October, which investors viewed positively.
The US Treasury market was the clear beneficiary of the global
market turmoil, with investors viewing US Treasury issues as a safe
haven from the world's financial problems. The intermediate-term
maturities on the interest rate yield curve saw the largest gains as
the yields on five-year and ten-year US Treasury notes fell 139
basis points and 124 basis points, respectively, since March 31,
1998 to end the period at 4.22% and 4.40%, respectively.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Investment Strategy
CMA New Jersey Municipal Money Fund began the six-month period ended
September 30, 1998 with an average portfolio maturity of 35 days. In
view of changing market conditions, we made several purchases of
notes and tax-exempt commercial paper during the six-month period
that increased the Fund's average portfolio maturity to 60 days by
period-end. The note purchases provided yields to the Fund in the
3.55%--3.60% range, with maturities from six months to one year. By
September period-end, New Jersey note yields had fallen to the 3.25%
range for a one-year maturity as demand increased and supply
decreased.
Overall, short-term issuance within the state decreased 25.9% in the
first nine months of this year as compared to the previous year as
state and local government finances continued to improve, thereby
reducing the need of municipalities to borrow. New Jersey is an
excellent example, since it came to market with its annual issuance
of tax-exempt commercial paper in September 1998. This year's
issuance of $700 million reflected a 12.5% decrease as compared to
last year, and the state expects to end fiscal year 1999 with a
surplus in excess of $700 million. Commercial paper remains an
important tool in managing the Fund's average portfolio maturity
while providing solid credit quality.
Finally, in our March 31, 1998 letter to shareholders, we had
discussed the new SEC Rule 2a-7 diversification guidelines that took
effect on July 1, 1998. The Fund was well positioned in terms of
diversification, which facilitated a smooth transition to the new
guidelines.
In the upcoming months, we expect that market conditions will remain
challenging as the world financial community intensifies its effort
to prevent a global recession. Short-term municipal bond yields will
likely remain under pressure if the Federal Reserve Board eases
monetary policy further. We will continue to seek opportunities to
purchase securities that will provide shareholders with the highest
credit quality, a stable net asset value and an attractive yield.
In Conclusion
We thank you for your continued interest in 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
(Steven T. Lewis)
Steven T. Lewis
Vice President and Portfolio Manager
November 4, 1998
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
FLOATS Floating Rate Securities
GO General Obligation Bonds
IDR Industrial Development Revenue Bonds
MSTR Municipal Securities Trust Receipts
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, 1998 (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
95.1% Governmental Loan Program), ACES, 3.55% due 7/01/2026 (a) $ 3,800
1,000 Bergen County, New Jersey, School, UT, 4.40% due 3/01/1999 1,003
8,500 Bernards Township, New Jersey, Sewage Authority, Sewer Revenue Refunding
Bonds, 3.85% due 12/15/1998 8,500
10,562 Brick Township, New Jersey, BAN, UT, 4% due 5/14/1999 10,590
Camden County, New Jersey, Improvement Authority Revenue Bonds, VRDN (a):
2,780 (Jewish Community Center Project), 3.75% due 12/01/2010 2,780
13,900 (Parkview Redevelopment Housing Project), AMT, 3.90% due 7/01/2026 13,900
7,600 Eagle Tax-Exempt Trust, New Jersey, GO, VRDN, Series 97C-2103, Class A,
3.91% due 2/15/2007 (a) 7,600
Eagle Tax-Exempt Trust, New Jersey State Housing and Mortgage Finance
Agency, VRDN (a):
6,300 4.07% due 10/01/2015 6,300
10,200 Series 94C-3001, 4.07% due 10/01/2015 (e) 10,200
14,000 Series 97C-3002, Class A, 3.70% due 10/01/2019 (e) 14,000
5,050 Essex County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Governmental Loan Program), ACES, 3.60% due 7/01/2026 (a) 5,050
9,500 Essex County, New Jersey, TAN, UT, 4% due 11/30/1998 9,507
13,260 Floating Rate Trust Certificates, VRDN, Series 1994-E, 3.60% due
7/02/1999 (a)(b) 13,260
8,000 Hudson County, New Jersey, Improvement Authority, Floating Rate Bonds
(Essential Purpose Pooled Government), VRDN, 3.85% due 7/15/2026 (a) 8,000
2,000 Jersey City, New Jersey, Municipal Utilities Project Notes, 4.25%
due 7/30/1999 2,004
13,650 Jersey City, New Jersey, Refunding Notes, UT, 4% due 7/02/1999 13,677
17,600 Monmouth County, New Jersey, Improvement Authority Revenue Bonds
(Pooled Government Loan Program), ACES, 3.65% due 8/01/2016 (a) 17,600
Montclair Township, New Jersey, UT:
3,316 BAN, 4% due 4/16/1999 3,322
1,671 Temporary Notes, 4% due 4/16/1999 1,674
3,325 Montville Township, New Jersey, Temporary Notes (School District),
4% due 10/02/1998 3,325
3,145 New Jersey Building Authority, State Building Revenue Refunding
Bonds, 5% due 6/15/1999 3,174
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey New Jersey EDA, Economic Development Revenue Bonds, VRDN (a):
(continued) $ 3,300 (Atlanta-Danic Urban Renewal), 3.60% due 11/01/2007 $ 3,300
9,125 (Benedictine Abbey of Newark), 4% due 12/01/2019 9,125
1,425 (Brach/Jersey Avenue Project), 3.85% due 5/01/2011 1,425
1,210 (Catholic Community Services), 3.80% due 6/01/2025 1,210
3,600 (Delta Plastics Corporation Project), 4.25% due 10/01/2006 3,600
2,204 (Filtra Corporation Project), 3.95% due 8/01/2015 2,204
1,415 (International Vitamin Corporation Project), AMT, 3.95% due 5/01/2003 1,415
1,600 (Office Court Associates Project), AMT, 3.95% due 4/01/2011 1,600
1,610 (Park Lane Associates Project), AMT, 4% due 4/01/2010 1,610
3,500 Refunding (Foreign Trade Zone Project), 4.10% due 12/01/2007 3,500
2,078 Refunding (RJB Associates Project), 3.95% due 8/01/2008 2,078
1,225 (Saint Peter's Preparatory School), 3.90% due 1/01/2010 1,225
3,000 (Wyckoff Family YMCA Project), 4.10% due 10/01/2017 3,000
New Jersey EDA, Exempt Facilities Revenue Bonds, AMT, CP:
8,200 (Chambers Cogeneration), 3.45% due 10/09/1998 8,200
3,500 (Chambers Cogeneration), 3.25% due 10/14/1998 3,500
3,600 (Chambers Cogeneration), 3.25% due 10/22/1998 3,600
3,600 (Chambers Cogeneration), 3.30% due 11/13/1998 3,600
8,000 (Chambers Cogeneration), 3.25% due 12/01/1998 8,000
4,300 (Keystone Project), 3.30% due 11/13/1998 4,300
4,500 (Keystone Project), 3.35% due 11/13/1998 4,500
4,400 (Keystone Project), 3.25% due 12/01/1998 4,400
9,300 (Keystone Project), 3.25% due 12/01/1998 9,300
1,455 New Jersey EDA, IDR (Plastic Suppliers Inc. Project), VRDN, AMT,
4.10% due 6/01/2006 (a) 1,455
4,000 New Jersey EDA, Industrial and Economic Development Revenue Bonds
(Toys 'R' Us, Inc.), VRDN, 3.45% due 4/01/2019 (a) 4,000
New Jersey EDA, Natural Gas Facilities Revenue Bonds, VRDN (a)(b):
2,500 (NUI Corporation Project), AMT, Series A, 4.05% due 6/01/2026 2,500
4,300 Refunding (New Jersey Natural Gas Company Project), AMT, Series B,
3.70% due 1/01/2028 4,300
1,000 Refunding (New Jersey Natural Gas Company Project), Series A, 3.70%
due 9/01/2027 1,000
New Jersey EDA, PCR, VRDN (a):
4,835 (General Motors Corp. Project), 3.10% due 10/01/2000 4,835
7,450 (Merck & Company), Series A, 4.25% due 10/01/2004 7,450
1,700 Refunding (Public Service Electric & Gas Company), Series A, 3.80%
due 3/01/2012 (e) 1,700
5,000 New Jersey EDA, Port Facility Revenue Bonds (Trailer Marine Crowle),
VRDN, 3.35% due 2/01/2002 (a) 5,000
New Jersey EDA, Revenue Bonds, VRDN (a):
4,905 (Accurate Box Inc. Project), AMT, 4.05% due 11/01/2009 4,905
2,000 (Adam Spence Corporation Project), AMT, 4.05% due 9/01/2017 2,000
2,200 (Bethany Baptist Church Project), 3.85% due 3/01/2018 2,200
3,700 (Catholic Charities), 3.80% due 11/01/2012 3,700
960 (E.P. Henry Corp. Project), 3.90% due 3/01/2005 960
1,035 (Economic Growth-Greater Mercer County), AMT, Series A-1, 3.75% due
11/01/2016 1,035
4,020 (Economic Growth-Greater Mercer County), AMT, Series E, 3.75% due
11/01/2006 4,020
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey New Jersey EDA, Revenue Bonds, VRDN (a) (concluded):
(continued) $ 3,295 (Economic Growth-Greater Mercer County), AMT, Series H, 3.75% due
11/01/2016 $ 3,295
1,255 (Economic Growth-Greater Mercer County), Series F, 3.70% due
11/01/2016 1,255
1,500 (Economic Growth-Greater Mercer County), Series G, 3.70% due
11/01/2016 1,500
2,800 (Economic Growth-Paterson), AMT, Series A, 3.70% due 1/01/2016 2,800
2,000 (Economic Growth-Paterson), AMT, Series B, 3.70% due 1/01/2005 2,000
3,000 (Joe & James Moreng), AMT, 4.10% due 3/01/2013 3,000
1,000 (The Peddie School Project), 3.90% due 2/01/2026 1,000
2,000 (The Peddie School Project), Series B, 3.90% due 2/01/2019 2,000
1,000 (Saint James Preparatory and Social Services Project), 3.85% due
12/01/2027 1,000
2,400 (US Golf Association Project), 3.90% due 5/01/2023 2,400
25,500 New Jersey EDA, Water Facilities Revenue Bonds, VRDN, AMT, Series
A-46, 4.40% due 7/01/2038 (a)(d) 25,500
22,855 New Jersey Sports and Exposition Authority (State Contract), VRDN,
Series C, 3.75% due 9/01/2024 (a)(e) 22,855
10,000 New Jersey State, CP, Series 1998-A, 3.80% due 10/07/1998 10,000
7,585 New Jersey State Educational Facilities Authority Revenue Bonds,
FLOATS, Series SG-48, 4.14% due 7/01/2026 (a)(e) 7,585
1,600 New Jersey State, GO, 7.30% due 4/15/1999 (c) 1,657
3,400 New Jersey State Higher Education Assistance Authority, Student
Loan Revenue Bonds (New Jersey Class Loan Program), AMT, Series B,
3.75% due 6/01/1999 (e) 3,400
10,000 New Jersey State Highway Authority, General Revenue Bonds (Garden
State Parkway), 7.25% due 1/01/1999 (c) 10,290
10,285 New Jersey State Tender Options, VRDN, UT, Series 104-A, 4.15% due
2/15/2004 (a) 10,285
New Jersey State Transportation Trust Fund Authority (Transportation
System):
14,075 MSTR, Series 64, Class A, 3.63% due 2/03/1999 (f) 14,075
2,500 Refunding, Series A, 5.50% due 6/15/1999 (b) 2,534
2,000 Refunding, Series B, 5% due 6/15/1999 2,021
4,450 Series B, 5% due 6/15/1999 4,493
4,200 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds,
VRDN, Series D, 3.65% due 1/01/2018 (a)(d) 4,200
North Brunswick Township, New Jersey, BAN, UT:
1,250 4% due 12/30/1998 1,251
2,923 4% due 8/27/1999 2,933
1,315 North Haledon, New Jersey, BAN, 3.85% due 8/12/1999 1,317
Passaic County, New Jersey, BAN:
7,500 4% due 9/24/1999 7,534
18,788 UT, 4.25% due 6/14/1999 18,848
Port Authority of New York and New Jersey (Line of Credit), CP,
Series A and B:
1,000 3.35% due 11/10/1998 1,000
3,410 3.40% due 11/10/1998 3,410
3,455 3.35% due 11/13/1998 3,455
7,430 3.50% due 12/08/1998 7,430
9,860 3.50% due 12/14/1998 9,860
Port Authority of New York and New Jersey, Special Obligation Revenue
Bonds, VRDN, AMT (a)(e):
20,800 MSTR, Series SGA-69, 4.10% due 12/01/2022 20,800
20,500 Series SG-94, 4.14% due 12/01/2017 20,500
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (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, Special Obligation Revenue
(concluded) Bonds (Versatile Structure Obligation), VRDN (a):
$38,450 AMT, Series 4, 4.20% due 4/01/2024 $ 38,450
23,200 AMT, Series 6, 4.20% due 12/01/2017 23,200
51,400 Refunding, AMT, Series 1R, 4.15% due 8/01/2028 51,400
3,100 Series 5, 4.05% due 8/01/2024 3,100
2,362 Rahway, New Jersey, BAN, 4.05% due 6/25/1999 2,366
7,300 Salem County, New Jersey, Industrial Pollution Control Financing
Authority Revenue Bonds (du Pont (E.I.) de Nemours & Co.), VRDN,
Series A, 3.50% due 3/01/2012 (a) 7,300
Salem County, New Jersey, Pollution Control Financing Authority, PCR,
Refunding (Atlantic City Electric Company), VRDN (a)(e):
1,000 AMT, Series B, 3.70% due 7/15/2017 1,000
5,500 Series A, 3.60% due 4/15/2014 5,500
4,400 Somerset County, New Jersey, Industrial Pollution Control Financing
Authority Revenue Refunding Bonds (American Cyanamid), VRDN, 3.55% due
12/01/2006 (a) 4,400
18,600 Stafford Township, New Jersey, BAN, 4.25% due 2/12/1999 18,629
11,660 Sussex County, New Jersey, BAN, UT, 4% due 2/09/1999 11,673
2,200 Union County, New Jersey, Industrial Pollution Control Financing Authority,
PCR, Refunding (Allied Signal Project), VRDN, 4.10% due 12/01/2020 (a) 2,200
1,500 West Orange, New Jersey, BAN, 4.25% due 11/17/1998 1,501
8,000 West Windsor/Plainsboro, New Jersey, Regional School District Temporary
Notes, UT, 4% due 1/27/1999 8,011
Woodbridge Township, New Jersey, BAN:
15,000 4% due 7/30/1999 15,047
10,000 UT, 4% due 7/01/1999 10,032
Puerto Rico-- 9,900 Eagle Tax-Exempt Trust, Puerto Rico Housing Finance, VRDN, Series
4.1% 97C-5102, 3.35% due 10/01/2011 (a)(b) 9,900
1,000 Puerto Rico Commonwealth, Government Development Bank, Refunding, VRDN,
3.625% due 12/01/2015 (a)(e) 1,000
700 Puerto Rico Commonwealth, Highway and Transportation Authority, Highway
Revenue Bonds, VRDN, Series X, 3.625% due 7/01/1999 (a) 700
20,210 Puerto Rico, Electric Power Authority, Power Revenue Bonds, MSTR, VRDN,
Series SGA-43, 3.87% due 7/01/2022 (a)(e) 20,210
Total Investments (Cost--$768,120*)--99.2% 768,120
Other AssetsLess Liabilities--0.8% 5,912
----------
Net Assets--100.0% $ 774,032
==========
<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, 1998.
(b)AMBAC Insured.
(c)Prerefunded.
(d)FGIC Insured.
(e)MBIA Insured.
(f)FSA Insured.
*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, 1998
<S> <C> <C>
Assets:
Investments, at value (identified cost--$768,120,246) (Note 1a) $ 768,120,246
Cash 118,691
Interest receivable 5,412,019
Prepaid registration fees and other assets (Note 1d) 1,023,614
--------------
Total assets 774,674,570
--------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 308,450
Distributor (Note 2) 188,235 496,685
--------------
Accrued expenses and other liabilities 145,971
--------------
Total liabilities 642,656
--------------
Net Assets $ 774,031,914
==============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 77,418,699
Paid-in capital in excess of par 696,767,963
Accumulated realized capital losses--net (Note 4) (154,748)
--------------
Net Assets--Equivalent to $1.00 per share based on 774,186,989 shares of
beneficial interest outstanding $ 774,031,914
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 13,639,419
Expenses:
Investment advisory fees (Note 2) $ 1,826,287
Distribution fees (Note 2) 479,497
Transfer agent fees (Note 2) 62,202
Accounting services (Note 2) 40,464
Registration fees (Note 1d) 31,385
Professional fees 30,449
Custodian fees 26,802
Printing and shareholder reports 17,396
Pricing fees 5,506
Trustees' fees and expenses 2,676
Other 3,840
--------------
Total expenses 2,526,504
--------------
Investment income--net 11,112,915
Realized Loss on Investments--Net (Note 1c) (14,798)
--------------
Net Increase in Net Assets Resulting from Operations $ 11,098,117
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 1998 1998
<S> <C> <C>
Operations:
Investment income--net $ 11,112,915 $ 20,706,359
Realized loss on investments--net (14,798) (31,035)
-------------- --------------
Net increase in net assets resulting from operations 11,098,117 20,675,324
-------------- --------------
Dividends to Shareholders (Note 1e):
Investment income--net (11,112,915) (20,706,317)
-------------- --------------
Net decrease in net assets resulting from dividends to shareholders (11,112,915) (20,706,317)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,310,292,139 2,799,906,641
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 11,114,755 20,706,788
-------------- --------------
1,321,406,894 2,820,613,429
Cost of shares redeemed (1,347,357,477) (2,703,946,349)
-------------- --------------
Net increase (decrease) in net assets derived from beneficial interest transactions (25,950,583) 116,667,080
-------------- --------------
Net Assets:
Total increase (decrease) in net assets (25,965,381) 116,636,087
Beginning of period 799,997,295 683,361,208
-------------- --------------
End of period $ 774,031,914 $ 799,997,295
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
September 30, For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1998 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Investment income--net .01 .03 .03 .03 .02
--------- --------- --------- --------- ---------
Total from investment operations .01 .03 .03 .03 .02
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.01) (.03) (.03) (.03) (.02)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 2.91%* 2.97% 2.83% 3.07% 2.52%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses .66%* .66% .68% .68% .71%
========= ========= ========= ========= =========
Investment income--net 2.88%* 2.92% 2.78% 3.02% 2.51%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 774,032 $ 799,997 $ 683,361 $ 610,285 $ 525,747
========= ========= ========= ========= =========
<FN>
*Annualized.
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. These unaudited
financial statements reflect all adjustments which are, in the
opinion of management, necessary to a fair statement of the results
for the interim period presented. All such adjustments are of a
normal recurring nature. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax and back-up withholding 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: 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)
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, PSI, FDS, 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, 1998, the Fund had a net capital loss carryforward of
approximately $140,000, of which $72,000 expires in 2003, $4,000
expires in 2004, $33,000 expires in 2005 and $31,000 expires in
2006. 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
Steven T. Lewis--Vice President
Darrin J. SanFillippo--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 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
