CMA
CMA PENNSYLVANIA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1999
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. 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 Pennsylvania
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, 1999, CMA Pennsylvania
Municipal Money Fund paid shareholders a net annualized yield of
2.62%.* As of September 30, 1999, the Fund's 7-day yield was 3.04%.
Economic Environment
During the six-month period ended September 30, 1999, the
commonwealth of Pennsylvania's economy moderated somewhat. This is
evident by the commonwealth's most recent Business Outlook Survey,
which reported continued growth in the manufacturing sector, but
reflected a mixed picture about the rate of growth. For example, the
general activity index increased to 17.6 in September from 12.0 in
August and the current employment index rose 3.5 points to 9.9.
Conversely, most other indicators suggest moderating growth and lack
of pricing power with the current new orders and shipment indexes
falling from levels in the previous month. In addition, the current
prices paid index remained virtually unchanged, increasing from 11.5
in August to 11.8 in September. Lastly, the future activity index,
which reflects firm expectations for the next six months, declined
markedly from +11.4 to -8.2.
However, the commonwealth's finances continue to remain in good
shape with fiscal year General Fund collections totaling $19.2
billion, $772.4 million or 4.2% above estimates. Personal income and
corporate tax collections also continue to be strong. By June 30,
1999, Pennsylvania collected $6.7 billion in personal income taxes,
4.7% above estimates.
As a result of the commonwealth's strong finances, Governor Ridge
signed into law $221.8 million in tax cuts, which includes the
elimination of state income tax for thousands of working families.
For example, under the new tax cut a family of four earning less
than $25,000 will pay zero state income tax, saving them $700
annually. This is a $57.1 million tax cut that will benefit more
than 370,000 taxpayers this year. In addition, the commonwealth will
eliminate the homeowner tax, which will save residents who sell
their homes an estimated $30 million in 1999. As a result of these
tax cuts just signed into law, Pennsylvania now stands as the most
generous state in the nation for cutting income taxes of working
families over the past year. Finally, in order to promote job
creation in some of Pennsylvania's most distressed communities,
legislators have authorized $5 million to create 12 Keystone
Opportunity Zones. These zones would eliminate all state and local
taxes in hopes of enticing employers to locate there.
Investment Strategy
During the six-month period ended September 30, 1999, the persistent
strength of the US economy continued to fuel an already volatile
interest rate environment. We began the period building on our
relatively bearish position by reinvesting the proceeds of maturing
tax-exempt commercial paper into variable rate products. We did this
in an effort to take advantage of the higher yields that were
expected in April and May as a result of cash outflows during tax
time. This strategy benefited the Fund as yields on one-year fixed
rate issues averaged 3.15% compared to yields on variable rate
products, which averaged 3.60%.
Moreover, during this time low inflation expectations and a lack of
fixed-rate products made it unattractive to extend the portfolio's
average maturity significantly. As May ended, a string of economic
data pointing to the presence of inflationary pressures caused
concern of higher interest rates. These factors combined with
comments made by Federal Reserve Board Chairman Alan Greenspan
caused yields on US Treasury securities to rise significantly as
expectations of tighter monetary policy increased. For example, the
yield on the one-year Treasury note, which began the period at 4.70%
rose to 5.20% by late June, an increase of 50 basis points (0.50%).
On June 30, 1999, the Federal Reserve Board tightened monetary
policy by raising the Federal Funds rate from 4.75% to 5.00%. As a
result, yields on one-year tax-exempt paper rose approximately 25
basis points (0.25%) to 3.50%. Given our bearish position, as well
as a meager June inflation report and the need to replace maturing
notes, we purchased some one-year issues. The bulk of tax-exempt
fixed rate supply expected during late summer and ongoing
inflationary concerns expressed by the Federal Reserve Board
Chairman kept our strategy in place. For the six-month period ended
September 30, 1999, the commonwealth of Pennsylvania's issuance
totaled $1.1 billion, an increase from the $326.2 million issued
during the previous six-month period.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
As the period came to an end, the relentless strength of the
domestic economy heightened expectations of tighter monetary policy
even though inflation remained relatively benign. During this time,
we chose to adapt a somewhat bullish investment strategy. The basis
for this strategy was twofold. First, comments made by the Federal
Reserve Board Chairman after the second interest rate hike were not
as negative as those made following the previous tightening. Second,
the expectation of tighter monetary policy, combined with
traditional issuance of cash flow notes in August and September,
caused yields on fixed rate paper to become more attractive, thus
providing a valuable opportunity to take a more aggressive stance.
As a result, our strategy allowed the Fund to perform on average
compared to its peer group during the period, as measured by IBC
Financial Data.
In Conclusion
We thank you for your support of CMA Pennsylvania Municipal Money
Fund, and we look forward to serving your investment needs in the
future.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Darrin J. SanFillippo)
Darrin J. SanFillippo
Vice President and Portfolio Manager
November 5, 1999
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania-- $11,000 ABN Amro Munitops Certificates Trust, VRDN, Series 1998-28, 3.55% due
96.1% 4/05/2006 (e) $ 11,000
8,665 Allegheny County, Pennsylvania, Hospital Development Authority Revenue
Bonds (South Hills Health System), CP, 3.15% due 3/31/2000 8,665
Allegheny County, Pennsylvania, IDA, Revenue Bonds (Unitel Mobile Video
Project), VRDN, AMT (e):
1,000 3.80% due 7/01/2009 1,000
3,500 Series B, 3.80% due 7/01/2009 3,500
8,800 Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
Development-Parkway Center Project), VRDN, Series A, 3.80% due 5/01/2009 (e) 8,800
10,400 Beaver County, Pennsylvania, IDA, Environmental Improvement Recreation
Revenue Bonds (BASF Corporation Project), VRDN, AMT, 4.10% due
9/01/2032 (e) 10,400
2,880 Beaver County, Pennsylvania, IDA, IDR (Standard Steel Specialty), VRDN, 3.95%
due 12/03/2007 (e) 2,880
4,000 Beaver County, Pennsylvania, IDA, PCR, Refunding (Atlantic Richfield Project),
VRDN, 3.75% due 12/01/2020 (e) 4,000
6,263 Bedford County, Pennsylvania, IDA, Revenue Bonds (Defiance Metal Products),
VRDN, 4% due 2/01/2011 (e) 6,263
1,830 Berks County, Pennsylvania, IDA, IDR (Valley Forge Flag Company, Inc. Project),
VRDN, AMT, Series A, 3.95% due 9/01/2006 (e) 1,830
1,400 Boyertown, Pennsylvania, Area School District, TRAN, 3.75% due 6/30/2000 1,401
2,175 Bucks County, Pennsylvania, IDA, Revenue Bonds (Dunmore Corp. Project),
VRDN, 4% due 9/01/2012 (e) 2,175
6,250 Bucks County, Pennsylvania, TRAN, 2.90% due 12/15/1999 6,250
Carbon County, Pennsylvania, IDA, Resource Recovery Revenue Bonds (Panther
Creek Partners), CP, AMT:
6,000 Series A, 3.40% due 10/08/1999 6,000
8,900 Series A, 3.65% due 11/12/1999 8,900
7,000 Series B, 3.40% due 10/21/1999 7,000
1,550 Central Dauphin, Pennsylvania, School District, GO, Refunding, Series A, 5% due
6/01/2000 (d) 1,568
3,000 Coatsville, Pennsylvania School District, TRAN, 4% due 6/30/2000 3,009
1,665 Crawford County, Pennsylvania, IDA (Heatrix Inc. Project), VRDN, AMT,
Series A, 3.95% due 11/01/2017 (e) 1,665
Cumberland County, Pennsylvania, Municipal Authority, College Revenue Bonds
(Dickinson College), CP:
2,000 Series A, 2.95% due 11/01/1999 2,000
4,750 Series B, 2.95% due 11/01/1999 4,750
2,260 Dauphin County, Pennsylvania, General Authority Revenue Bonds, Series 1,
3.85% due 6/01/2000 (a) 2,260
4,640 Dauphin County, Pennsylvania, General Authority, Revenue Refunding Bonds
(School District Pooled Financing Program II), VRDN, 3.85% due 9/01/2032 (a)(e) 4,640
5,000 Dauphin County, Pennsylvania, IDA, Revenue Bonds (Interconnection System
Project), VRDN, AMT, 3.95% due 1/01/2014 (e) 5,000
</TABLE>
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
FLOATS Floating Rate Securities
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
UPDATES Unit Price Demand Adjustable Tax-Exempt
Securities
VRDN Variable Rate Demand Notes
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania $ 2,000 Delaware County, Pennsylvania, Authority Revenue Bonds (Widener University
(continued) Inc.), VRDN, 3.85% due 7/01/2014 (e) $ 2,000
2,500 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project), UPDATES, VRDN,
4% due 12/01/2009 (e) 2,500
10,000 Eagle Tax-Exempt Trust, Beaver County, Pennsylvania, VRDN, Series 95-3503,
3.84% due 10/01/2020 (e) 10,000
Eagle Tax-Exempt Trust, Pennsylvania, GO:
4,300 Series 94-3803, 3.50% due 1/25/2000 4,300
5,940 Series 96C-3801, 3.50% due 1/25/2000 5,940
6,080 Eagle Tax-Exempt Trust, Pennsylvania, HFA, Series 94C-3801, 3.50% due
1/25/2000 6,080
3,310 East Hempfield Township, Pennsylvania, IDA, Revenue Bonds (Steckel Printing
Inc.), VRDN, AMT, 3.95% due 2/01/2013 (e) 3,310
Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN (e):
14,800 3.80% due 12/01/2028 (b) 14,800
10,000 Series D, 3.85% due 3/01/2024 10,000
3,250 Erie County, Pennsylvania, IDR, Refunding (Reed Manufacturing Corp. Project),
VRDN, 3.95% due 6/01/2006 (e) 3,250
4,500 Erie County, Pennsylvania, TRAN, 3.65% due 12/30/1999 4,506
6,850 Fayette County, Pennsylvania, IDA, IDR (Dynamic Materials Corp. Project),
VRDN, 4% due 9/01/2013 (e) 6,850
2,000 Geisinger Authority, Pennsylvania, Health System Revenue Refunding Bonds
(Penn State-Geisinger Health), VRDN, Series B, 3.95% due 8/15/2028 (e) 2,000
4,655 Greene County, Pennsylvania, IDA, Revenue Bonds (Manufacturing
Facilities-Kyowa America), VRDN, AMT, Series D, 3.95% due 7/01/2014 (e) 4,655
13,000 Indiana County, Pennsylvania, IDA, PCR, Refunding (Conemaugh Project),
VRDN, AMT, Series A, 3.75% due 6/01/2027 (e) 13,000
6,500 Iroquois, Pennsylvania, School District, GO, 4.50% due 6/01/2000 6,532
2,900 Jeanette, Pennsylvania, Health Services Authority, Hospital Revenue Bonds
(Jeannette District Memorial Hospital), VRDN, Series B, 3.85% due
11/01/2018 (e) 2,900
6,390 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 3.88% due
9/15/2020 (e) 6,390
Lancaster, Pennsylvania, IDA, Revenue Bonds (Kalas Manufacturing Inc. Project),
VRDN, AMT (e):
1,945 Series A, 4% due 10/01/2004 1,945
1,565 Series B, 4% due 10/01/2004 1,565
1,600 Lehigh County, Pennsylvania, General Purpose Authority Revenue Bonds
(Lehigh Valley Hospital), VRDN, Series A, 3.90% due 7/01/2028 (a)(e) 1,600
4,000 Monroe County, Pennsylvania, IDA, Revenue Refunding Bonds (UTD Steel
Enterprises Project), VRDN, AMT, Series A, 3.95% due 9/01/2013 (e) 4,000
765 Montgomery County, Pennsylvania, GO, VRDN, 3.80% due 11/15/2001 (e) 765
1,700 Montgomery County, Pennsylvania, IDA, Revenue Bonds, Pollution Control
(Merck & Co. Inc. Project), FLOATS, VRDN, 4.25% due 10/01/2017 (e) 1,700
3,500 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
Development-Valley Forge Plaza), VRDN, 3.80% due 12/01/2013 (e) 3,500
3,850 Montour County, Pennsylvania, IDA, PCR (Merck & Co. Inc. Project), FLOATS,
VRDN, Series A, 4% due 10/01/2003 (e) 3,850
3,365 Moon, Pennsylvania, IDA, Commercial Development (One Thorn Run Center
Project), VRDN, Series A, 3.80% due 11/01/2015 (e) 3,365
Northampton County, Pennsylvania, Higher Education Authority Revenue Bonds:
2,615 (College Funding-Lafayette), 1st Series, 3.75% due 11/30/1999 2,618
4,500 (Lafayette College), VRDN, Series A, 3.85% due 11/01/2028 (e) 4,500
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania Northampton County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (e):
(continued) $ 3,570 (Manufacturing Facilities-MCS Industries Inc.), 3.95% due 6/01/2012 $ 3,570
4,150 (Reale Association Project), 3.95% due 4/01/2012 4,150
Pennsylvania Economic Development Financing Authority, Economic
Development Revenue Bonds:
400 CP, Series B-4, 3.95% due 12/01/1999 400
4,600 VRDN, AMT, Series D-7, 3.95% due 8/01/2022 (e) 4,600
1,600 VRDN, AMT, Series F-5, 3.95% due 12/01/2006 (e) 1,600
3,100 VRDN, (Gutchess Hardwoods Inc. Project), Series B, 3.65% due 4/01/2005 3,100
925 VRDN, (Wendt Dunning Co. Project), AMT, 3.90% due 9/01/2010 (e) 925
4,670 Pennsylvania Economic Development Financing Authority, Exempt Facilities
Revenue Bonds (Approved Solid Waste Projects), AMT, 3.25% due 12/15/1999 4,670
Pennsylvania Energy Development Authority Revenue Bonds, VRDN, AMT (e):
5,150 (B&W Ebensburg Project), 3.75% due 12/01/2011 5,150
14,000 (Piney Creek), Series A, 3.75% due 12/01/2011 14,000
900 (Piney Creek), Series C, 3.75% due 12/01/2011 900
3,500 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
Refunding Bonds (Philadelphia Funding Program), 4.50% due 6/15/2000 (d) 3,530
Pennsylvania State, GO:
2,500 First Series, 5% due 5/01/2000 2,526
6,025 Second Series, 5% due 11/15/1999 (a) 6,037
Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue
Bonds, VRDN, AMT (e):
3,100 Series A, 3.90% due 1/01/2018 3,100
16,000 Series A, 3.95% due 3/01/2027 16,000
1,800 Series C, 3.90% due 7/01/2018 1,800
3,300 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds (Pennsylvania College of Optometry), VRDN, 3.80%
due 3/01/2026 (e) 3,300
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds
(Association of Independent Colleges and Universities), CP:
5,000 Series C-4, 4% due 11/01/1999 5,004
7,000 Series D-5, 3.75% due 5/01/2000 7,022
Pennsylvania State Higher Educational Facilities Authority, Revenue Refunding
Bonds (Carnegie Mellon University), VRDN (e):
11,800 Series A, 3.90% due 11/01/2025 11,800
2,100 Series B, 3.95% due 11/01/2027 2,100
800 Series C, 3.95% due 11/01/2029 800
3,810 Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Refunding
Bonds, Sub-Series B, 4% due 12/01/1999 (a) 3,816
500 Philadelphia, Pennsylvania, Authority for IDR, Refunding (Institute for Cancer
Research), VRDN, Series A, 3.95% due 7/01/2013 (e) 500
Philadelphia, Pennsylvania, Authority for IDR, VRDN (e):
2,560 (David Michael & Co. Inc.), AMT, 4% due 10/01/2006 2,560
7,200 (Fox Chase Cancer Center Project), 3.95% due 7/01/2025 7,200
15,000 Philadelphia, Pennsylvania, GO, TRAN, Series A, 4.25% due 6/30/2000 15,082
10,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, CP, Series C, 3.20% due
2/18/2000 10,000
2,000 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities Authority,
Hospital Revenue Bonds (Children's Hospital of Philadelphia Project), VRDN,
3.95% due 3/01/2027 (e) 2,000
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1999 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania $ 4,000 Philadelphia, Pennsylvania, School District, GO, TRAN, Series B, 4% due
(concluded) 6/30/2000 $ 4,016
Pittsburgh, Pennsylvania, Urban Redevelopment Authority, Mortgage Revenue
Refunding Bonds, AMT:
1,520 Series C, 3.20% due 12/01/1999 1,520
2,000 Series E, 3.65% due 8/15/2000 2,000
Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Refunding
Bonds (Northeastern Power Company), VRDN (e):
38,200 AMT, Series B, 4.05% due 12/01/2022 38,200
2,750 Series A, 3.95% due 12/01/2022 2,750
3,200 Scranton-Lackawanna, Pennsylvania, Health and Welfare Authority, Revenue
Refunding Bonds, Hospital Facilities (Mercy Health), VRDN, Series A, 3.75%
due 12/01/2021 (e) 3,200
Venango, Pennsylvania, IDA, Resource Recovery Revenue Bonds (Scrubgrass
Project), CP, AMT:
4,100 3.65% due 3/01/2000 4,100
5,915 3.70% due 3/09/2000 5,915
Venango, Pennsylvania, IDA, Resource Recovery Revenue Refunding Bonds
(Scrubgrass Project), CP, AMT:
5,000 Series A, 3.55% due 2/11/2000 5,000
5,400 Series B, 3.55% due 1/27/2000 5,400
4,200 Series B, 3.60% due 2/11/2000 4,200
4,650 Series B, 3.65% due 3/01/2000 4,650
2,500 Westmoreland County, Pennsylvania, IDA Revenue Bonds (Newcomer Products),
VRDN, AMT, 3.95% due 12/01/2006 (e) 2,500
York, Pennsylvania, General Authority, Pooled Financing Revenue Bonds,
VRDN (e):
2,000 3.85% due 9/01/2026 2,000
9,000 Sub Series 96-B, 3.80% due 9/01/2026 (a) 9,000
Puerto Rico-- 2,000 Puerto Rico Commonwealth, Government Development Bank, CP, 3.40% due
2.8% 2/11/2000 2,000
2,700 Puerto Rico Commonwealth, Government Development Bank, Revenue
Refunding Bonds, VRDN, 3.10% due 12/01/2015 (c)(e) 2,700
4,500 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Refunding Bonds, VRDN, Series A, 3.45% due
7/01/2028 (a)(e) 4,500
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, MSTR, VRDN,
Series SGA-44, 3.45% due 7/01/2023 (e) 5,000
Total Investments (Cost--$509,270*)--98.9% 509,270
Other AssetsLess Liabilities--1.1% 5,725
----------
Net Assets--100.0% $ 514,995
==========
<FN>
(a)AMBAC Insured.
(b)FSA Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at September 30, 1999.
*Cost for Federal income tax purposes.
See Notes to Financial Statements
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1999
<S> <C> <C>
Assets:
Investments, at value (identified cost--$509,269,823) (Note 1a) $ 509,269,823
Cash 102,624
Receivables:
Interest $ 3,010,219
Securities sold 2,336 3,012,555
---------------
Prepaid registration fees and other assets (Note 1d) 2,855,389
---------------
Total assets 515,240,391
---------------
Liabilities:
Payables:
Distributor (Note 2) 125,904
Investment adviser (Note 2) 42,233 168,137
---------------
Accrued expenses and other liabilities 77,287
---------------
Total liabilities 245,424
---------------
Net Assets $ 514,994,967
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 51,506,650
Paid-in capital in excess of par 463,559,525
Accumulated realized capital losses--net (Note 4) (71,208)
---------------
Net Assets--Equivalent to $1.00 per share based on 515,066,500 shares of
beneficial interest outstanding $ 514,994,967
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 8,495,700
Expenses:
Investment advisory fees (Note 2) $ 1,282,093
Distribution fees (Note 2) 318,055
Transfer agent fees (Note 2) 45,558
Accounting services (Note 2) 38,531
Professional fees 26,105
Custodian fees 20,003
Registration fees (Note 1d) 13,666
Printing and shareholder reports 12,350
Pricing fees 5,703
Trustees' fees and expenses 1,558
Other 2,463
---------------
Total expenses 1,766,085
---------------
Investment income--net 6,729,615
Realized Loss on Investments--Net (Note 1c) (16,884)
---------------
Net Increase in Net Assets Resulting from Operations $ 6,712,731
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
1999 1999
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income--net $ 6,729,615 $ 13,179,157
Realized loss on investments--net (16,884) (7,926)
--------------- ---------------
Net increase in net assets resulting from operations 6,712,731 13,171,231
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (6,729,615) (13,179,157)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (6,729,615) (13,179,157)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,105,231,179 1,748,380,956
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 6,729,645 13,179,254
--------------- ---------------
1,111,960,824 1,761,560,210
Cost of shares redeemed (1,125,789,353) (1,675,724,067)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (13,828,529) 85,836,143
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets (13,845,413) 85,828,217
Beginning of period 528,840,380 443,012,163
--------------- ---------------
End of period $ 514,994,967 $ 528,840,380
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA 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: 1999 1999 1998 1997 1996
<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 .03
Realized loss on investments--net --++ --++ --++ --++ --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .01 .03 .03 .03 .03
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.01) (.03) (.03) (.03) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.62%* 2.77% 3.08% 2.92% 3.19%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .69%* .70% .70% .71% .72%
========== ========== ========== ========== ==========
Investment income--net 2.61%* 2.71% 3.03% 2.86% 3.13%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $ 514,995 $ 528,840 $ 443,012 $ 428,896 $ 416,729
========== ========== ========== ========== ==========
<FN>
*Annualized.
++Amount is less than $.01 per share.
See Notes to Financial Statements.
</TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Pennsylvania 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 generally
accepted accounting principles, which may require the use of
management accruals and estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of
management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax 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: .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.
CMA PENNSYLVANIA 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 Incorporated ("MLPF&S")
receives a distribution fee from the Fund at the end of each month
at the annual rate of .125% of average daily net assets of the Fund.
The distribution fee is to compensate MLPF&S financial consultants
and other directly involved branch office personnel for selling
shares of the Fund and for providing direct personal services to
shareholders. The distribution fee is not compensation for the
administrative and operational services rendered to the Fund by
MLPF&S in processing share orders and administering shareholder
accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares sold, reinvested and redeemed during the
periods corresponds to the amounts included in the Statements of
Changes in Net Assets for net proceeds from sale of shares, value of
shares reinvested and cost of shares, redeemed, respectively, since
shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 1999, the Fund had a net capital loss carryforward of
approximately $50,000, of which $13,000 expires in 2002, $11,000
expires in 2003, $22,000 expires in 2006 and $4,000 expires in 2007.
This amount will be available to offset like amounts of any future
taxable gains.
CMA PENNSYLVANIA 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 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].
